source:
  type: guide
  id: hud-4000-1-ii-h-section-247-single-family-mortgage-insurance-on-hawaiian-hom
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — h. Section
    247 Single Family Mortgage Insurance on Hawaiian Home Lands (11/07/2023)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — h. Section
    247 Single Family Mortgage Insurance on Hawaiian Home Lands (11/07/2023).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-h-section-247-single-family-mortgage-insurance-on-hawaiian-hom-full
  canonical_id: hud-4000-1-ii-h-section-247-single-family-mortgage-insurance-on-hawaiian-hom-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — h. Section
    247 Single Family Mortgage Insurance on Hawaiian Home Lands (11/07/2023)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — h. 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: 'h. Section 247 Single Family Mortgage Insurance on Hawaiian
      Home Lands (11/07/2023) i. Definition FHA insures Mortgages made to Native Hawaiians
      to purchase or refinance one- to four- family dwellings located on Hawaiian
      Home Lands, which are owned by the State of Hawaii, Department of Hawaiian Home
      Lands (DHHL) and leased to Native Hawaiians for 99 year lease terms. ii. Eligibility
      Requirements (A) Borrower Eligibility (1) Native Hawaiian A Borrower must be
      a native Hawaiian who is at least 18 years of age and certified as eligible
      to hold a Hawaiian Home Lands Lease, or possesses a lease of Hawaiian Home Lands
      issued under Section 207(a) of the Hawaiian Homes Commission Act, 1920, that
      has been certified by DHHL as being a valid current lease, and not in default.
      Native Hawaiian means a descendant of not less than 50 percent part of the blood
      of the races inhabiting the Hawaiian Islands before January 1, 1778 (or, in
      the case of an individual who succeeds a spouse or parent in an interest in
      a lease of Hawaiian Home Lands, such lower percentage as may be established
      for such succession under Section 209 of the Hawaiian Homes Commission Act,
      1920, or under the corresponding provision of the constitution of the State
      of Hawaii adopted under Section 4 of the Act entitled, “An Act to provide for
      the admission of the State of Hawaii into the Union,” approved March 18, 1959).
      12 U.S.C. § 1715z-12(d)(1). (2) Principal Residence The Property must be the
      Borrower’s Principal Residence (leased land condominiums and townhomes are allowed).
      (3) Co-Borrower DHHL may be a co-Borrower on the Mortgage. (B) Mortgaged Property
      Location The mortgaged Property must be located within the Hawaiian Home Lands
      covered under a homestead lease issued under Section 207(a) of Hawaiian Homes
      Commission Act, 1920, or under the corresponding provision of the Constitution
      of II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing
      Programs Forward Mortgages 8. Programs and Products - Section 247 Single Family
      Mortgage Insurance on Hawaiian Home Lands (11/07/2023) Handbook 4000.1 468 Last
      Revised: 11/26/2025 the State of Hawaii adopted under Section 4 of the Act entitled
      “An Act to provide for the admission of the State of Hawaii into the Union,”
      approved March 18, 1959 (73 Stat. 5). iii. Required Documentation (A) Certificate
      of Eligibility Certificates of Eligibility are issued by DHHL and certify that
      the Borrower possesses a homestead lease in good standing (not canceled or in
      default). The Mortgagee must verify and obtain documentation that the Borrower
      has a Certificate of Eligibility for an existing Hawaiian Home Lands lease issued
      by DHHL, or possesses a lease of Hawaiian Home Lands issued under Section 207(a)
      of the Hawaiian Homes Commission Act, 1920 (42 Stat. 110). Obtaining a Certificate
      of Eligibility To obtain a Certificate of Eligibility, the Mortgagee must submit
      a Request for Certification of Eligibility form to the DHHL. DHHL will issue
      the Certification of Eligibility to the Mortgagee. (B) Copy of Homestead Lease
      The Mortgagee must obtain a recorded copy of either (1) the original homestead
      lease issued by DHHL that identifies the proposed Borrower as the lessee; or
      (2) the original homestead lease plus documentation of the chain of succession
      or assignment of the homestead lease to the Borrower and DHHL’s consent to each
      and every transfer of the homestead lease. If the lease was issued prior the
      development of the Hawaii State recording system, the Mortgagee must provide
      written confirmation from DHHL or provide other evidence that the lease was
      validly issued to the lessee. The Mortgagee must document all amendments to
      the original homestead lease. All homestead lease documents must bear evidence
      of having been recorded at the DHHL. (C) DHHL Mortgage Insurance Program Rider
      The Mortgagee must obtain an executed copy of the DHHL Mortgage Insurance Program
      Rider. The Mortgagee must certify and document that the rider has been recorded
      in DHHL’s recording system. (D) DHHL Consent to Mortgage The Mortgagee must
      obtain a “Consent to Mortgage” executed by the Chairman of the Hawaiian Homes
      Commission and recorded with DHHL. Mortgagees can obtain II. ORIGINATION THROUGH
      POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward Mortgages
      8. Programs and Products - Section 247 Single Family Mortgage Insurance on Hawaiian
      Home Lands (11/07/2023) Handbook 4000.1 469 Last Revised: 11/26/2025 this form
      by writing to the Department of Hawaiian Home Lands, Attn: Loan Services Branch.
      iv. Appraisal Mortgagees are required to obtain an appraisal for both Existing
      and New Construction with the cost approach to value developed. The sales comparison
      and income approaches to value may be excluded when the approaches are not necessary
      for credible results and the basis of the exclusion is explained. The following
      statement may be included on the applicable Fannie Mae Form 1004/Freddie Mac
      Form 70, Uniform Residential Appraisal Report (URAR): “This appraisal has been
      completed for FHA mortgage insurance purposes, per HUD instructions for DHHL
      Properties.” For more information on appraisal requirements, refer to the Appraiser
      section. v. Origination (A) Loan-to-Value Limits for Cash-Out Refinances The
      maximum LTV ratio for refinance loans is 75 percent. The maximum LTV may be
      increased to 85 percent when the Borrower is paying off an existing Mortgage
      and all remaining proceeds are used for documented home improvements. Cash-out
      refinancing for the purpose of debt consolidation is not allowed. (B) Mortgage
      Insurance Premium The Mortgage Insurance Premium (MIP) payment on a Section
      247 Mortgage is a one-time upfront MIP of 380 Basis Points (bps). Annual or
      periodic MIPs are not assessed on Section 247 Mortgages. vi. Underwriting For
      refinance transactions, for the purpose of consolidating debt, the Mortgagee
      must include all debt, including those being paid off through the refinance,
      when calculating the Borrower’s debt ratio. vii. Closing (A) Lien Position The
      Section 247 Mortgage must give rise to a valid and secured interest in the mortgaged
      Property. However, the lien is not required to be in first position. II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward
      Mortgages 8. Programs and Products - Section 247 Single Family Mortgage Insurance
      on Hawaiian Home Lands (11/07/2023) Handbook 4000.1 470 Last Revised: 11/26/2025
      (B) Recordation The Mortgage must be recorded in DHHL’s recording system upon
      closing of the Mortgage. The documents must not be recorded at the State of
      Hawaii Bureau of Conveyances or filed with the Office of Assistant Registrar
      of the Land Court. Recordation at either of these offices does not effectuate
      a lien on the Hawaiian Home Lands lease. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages'
  judgment: false
