source:
  type: guide
  id: hud-4000-1-ii-8-programs-and-products-section-247-single-family-mortgage-ins
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — 8. Programs and Products - Section
    247 Single Family Mortgage Insurance on Hawaiian Home Lands (11/07/2023)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — 8. Programs and Products -
    Section 247 Single Family Mortgage Insurance on Hawaiian Home Lands (11/07/2023).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-8-programs-and-products-section-247-single-family-mortgage-ins-full
  canonical_id: hud-4000-1-ii-8-programs-and-products-section-247-single-family-mortgage-ins-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II
  description: "Programs and Products - Section 247 Single Family Mortgage Insurance on Hawaiian Home\
    \ Lands: 8. Programs and Products - Section 247 Single Family Mortgage Insurance on Hawaiian Home\
    \ Lands \n \nh. Section 247 Single Family Mortgage Insurance on Hawaiian Home Lands \nFHA insures\
    \ Mortgages made to Native Hawaiians to purchase or refinance one- to fourfamily dwellings located\
    \ on Hawaiian Home Land…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - hud
  - 4000-1
  - curated
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — 8. Programs and Products -
      Section 247 Single Family Mortgage Insurance on Hawaiian Home Lands (11/07/2023)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: "8. Programs and Products - Section 247 Single Family Mortgage Insurance on Hawaiian\
      \ Home Lands \n \nh. Section 247 Single Family Mortgage Insurance on Hawaiian Home Lands \nFHA insures\
      \ Mortgages made to Native Hawaiians to purchase or refinance one- to fourfamily dwellings located\
      \ on Hawaiian Home Lands, which are owned by the State of \nHawaii, Department of Hawaiian Home\
      \ Lands (DHHL) and leased to Native Hawaiians \nfor 99 year lease terms. \n(1) Native Hawaiian \n\
      A Borrower must be a native Hawaiian who is at least 18 years of age and \ncertified as eligible\
      \ to hold a Hawaiian Home Lands Lease, or possesses a lease of \nHawaiian Home Lands issued under\
      \ Section 207(a) of the Hawaiian Homes \nCommission Act, 1920, that has been certified by DHHL as\
      \ being a valid current \nlease, and not in default. \nNative Hawaiian means a descendant of not\
      \ less than 50 percent part of the blood \nof the races inhabiting the Hawaiian Islands before January\
      \ 1, 1778 (or, in the \ncase of an individual who succeeds a spouse or parent in an interest in\
      \ a lease of \nHawaiian Home Lands, such lower percentage as may be established for such \nsuccession\
      \ under Section 209 of the Hawaiian Homes Commission Act, 1920, or \nunder the corresponding provision\
      \ of the constitution of the State of Hawaii \nadopted under Section 4 of the Act entitled, “An\
      \ Act to provide for the admission \nof the State of Hawaii into the Union,” approved March 18,\
      \ 1959). 12 U.S.C. \n§ 1715z-12(d)(1). \nThe Property must be the Borrower’s Principal Residence\
      \ (leased land \ncondominiums and townhomes are allowed). \n(3) Co-Borrower \nDHHL may be a co-Borrower\
      \ on the Mortgage. \n(B) Mortgaged Property Location \nThe mortgaged Property must be located within\
      \ the Hawaiian Home Lands covered \nunder a homestead lease issued under Section 207(a) of Hawaiian\
      \ Homes \nCommission Act, 1920, or under the corresponding provision of the Constitution of \n\n\
      8. Programs and Products - Section 247 Single Family Mortgage Insurance on Hawaiian Home Lands \n\
      \ \nthe State of Hawaii adopted under Section 4 of the Act entitled “An Act to provide for \nthe\
      \ admission of the State of Hawaii into the Union,” approved March 18, 1959 (73 \nStat. 5). \n(A)\
      \ Certificate of Eligibility \nCertificates of Eligibility are issued by DHHL and certify that the\
      \ Borrower possesses \na homestead lease in good standing (not canceled or in default). \nThe Mortgagee\
      \ must verify and obtain documentation that the Borrower has a \nCertificate of Eligibility for\
      \ an existing Hawaiian Home Lands lease issued by \nDHHL, or possesses a lease of Hawaiian Home\
      \ Lands issued under Section 207(a) of \nthe Hawaiian Homes Commission Act, 1920 (42 Stat. 110).\
      \ \nObtaining a Certificate of Eligibility \nTo obtain a Certificate of Eligibility, the Mortgagee\
      \ must submit a Request for \nCertification of Eligibility form to the DHHL. DHHL will issue the\
      \ Certification of \nEligibility to the Mortgagee. \n(B) Copy of Homestead Lease \nThe Mortgagee\
      \ must obtain a recorded copy of either (1) the original homestead lease \nissued by DHHL that identifies\
      \ the proposed Borrower as the lessee; or (2) the \noriginal homestead lease plus documentation\
      \ of the chain of succession or assignment \nof the homestead lease to the Borrower and DHHL’s consent\
      \ to each and every \ntransfer of the homestead lease. If the lease was issued prior the development\
      \ of the \nHawaii State recording system, the Mortgagee must provide written confirmation \nfrom\
      \ DHHL or provide other evidence that the lease was validly issued to the lessee. \nThe Mortgagee\
      \ must document all amendments to the original homestead lease. All \nhomestead lease documents\
      \ must bear evidence of having been recorded at the \nDHHL. \n(C) DHHL Mortgage Insurance Program\
      \ Rider \nThe Mortgagee must obtain an executed copy of the DHHL Mortgage Insurance \nProgram Rider.\
      \ The Mortgagee must certify and document that the rider has been \nrecorded in DHHL’s recording\
      \ system. \n(D) DHHL Consent to Mortgage \nThe Mortgagee must obtain a “Consent to Mortgage” executed\
      \ by the Chairman of \nthe Hawaiian Homes Commission and recorded with DHHL. Mortgagees can obtain\
      \ \n\n8. Programs and Products - Section 247 Single Family Mortgage Insurance on Hawaiian Home Lands\
      \ \n \nthis form by writing to the Department of Hawaiian Home Lands, Attn: Loan \nServices Branch.\
      \ \niv. Appraisal \nMortgagees are required to obtain an appraisal for both Existing and New Construction\
      \ \nwith the cost approach to value developed. The sales comparison and income approaches \nto value\
      \ may be excluded when the approaches are not necessary for credible results and \nthe basis of\
      \ the exclusion is explained. \nThe following statement may be included on the applicable Fannie\
      \ Mae Form \n1004/Freddie Mac Form 70, Uniform Residential Appraisal Report (URAR): “This \nappraisal\
      \ has been completed for FHA mortgage insurance purposes, per HUD \ninstructions for DHHL Properties.”\
      \ For more information on appraisal requirements, refer \nto the Appraiser section. \nv. Origination\
      \ \n(A) Loan-to-Value Limits for Cash-Out Refinances \nThe maximum LTV ratio for refinance loans\
      \ is 75 percent. \nThe maximum LTV may be increased to 85 percent when the Borrower is paying off\
      \ \nan existing Mortgage and all remaining proceeds are used for documented home \nCash-out refinancing\
      \ for the purpose of debt consolidation is not allowed. \n(B) Mortgage Insurance Premium \nThe Mortgage\
      \ Insurance Premium (MIP) payment on a Section 247 Mortgage is a \none-time upfront MIP of 380 Basis\
      \ Points (bps). \nAnnual or periodic MIPs are not assessed on Section 247 Mortgages. \nvi. Underwriting\
      \ \nFor refinance transactions, for the purpose of consolidating debt, the Mortgagee must \ninclude\
      \ all debt, including those being paid off through the refinance, when calculating \nthe Borrower’s\
      \ debt ratio. \nvii. Closing \n(A) Lien Position \nThe Section 247 Mortgage must give rise to a\
      \ valid and secured interest in the \nmortgaged Property. However, the lien is not required to be\
      \ in first position. \n\n8. Programs and Products - Section 247 Single Family Mortgage Insurance\
      \ on Hawaiian Home Lands \n \n(B) Recordation \nThe Mortgage must be recorded in DHHL’s recording\
      \ system upon closing of the \nMortgage. The documents must not be recorded at the State of Hawaii\
      \ Bureau of \nConveyances or filed with the Office of Assistant Registrar of the Land Court. \n\
      Recordation at either of these offices does not effectuate a lien on the Hawaiian Home \nLands lease."
    drafter_attestation: Verbatim section from snapshot 8c03836f77f317e1; boundary human-curated + substring-verified
      (2026-07-23).
  judgment: false
