Homeowners in Hawaii can enjoy a beautiful piece of tropical paradise! However, Hawaii has the highest median housing prices of any state, as well as a high average mortgage debt. This can make home ownership in Hawaii difficult.
Luckily, local and national programs exist that offer down payment assistance and grants to qualified applicants. The Hawaii Home Ownership Center and the Hawaii Housing Finance and Development Corporation are two organizations that offer such programs.
If you're thinking about purchasing a home in Hawaii, you may have options to help with the down payment or closing costs. Read below to learn more about any program and see if it can help with your home purchase!
The Hawaii Home Ownership Center and HHOC Mortgage provide this down payment assistance to help cover the costs of the down payment, closing, and other prepaid items.
Through this assistance, applicants can receive up to $75,000. This is an amortizing fixed-rate loan with a 15-year term. The interest rate for this loan is as much as 2% more than the first mortgage interest rate.
Qualified applicants must have not owned a house in the prior three years, be first-time homebuyers, and have a middle FICO score of at least 700. In addition, applicants must have 9 hours of approved homebuying education, which can be completed either in person or online, as well as HHOC counseling. The borrower must be planning to use the house as their primary residence. Single family dwellings, condominium units and townhouses are all allowed.
Borrowers must be able to put down at least 5% for the down payment from their own funds. If the applicant is putting only 5% down, then as of 2020 the sales price of the house cannot be more than $500,000.
Offered through the City of Honolulu, borrowers can access as much as $40,000 to help with the costs of obtaining a home and home loan. This is a 20-year amortizing loan with 0% interest. Monthly payments are required. In the event that the property is sold or transferred, part of the loan amount will become due, unless the new owner meets the requirements for the loan.
Funds have limited availability and will be offered first-come, first-serve to qualified applicants.
In order to be eligible, applicants must be first-time homebuyers, finish a homebuying education class, and meet certain income limits. Furthermore, the applicant must be planning to use the house, which must be on Oahu, as his or her primary residence. All properties must be up to code and pass an inspection.
As of 2020, the total annual household income limits are below:
- 1 person household: $58,600
- 2 person household: $67,000
- 3 person household: $75,350
- 4 person household: $83,700
- 5 person household: $90,400
- 6 person household: $97,100
- 7 person household: $103,800
- 8 person household: $110,500
- 9 person household: $117,200
- 10 person household: $123,880
The Hula Mae Mortgage Loan Program is available through the Hawaii Housing Finance and Development Corporation.
As much as 3% of the sales price is offered to eligible applicants as down payment assistance. In order to qualify, the applicant must be a Hawaii resident, 18 years old or older, and a US citizen or declarant alien. Only first-time homebuyers are eligible. Previous Hula Mae loan recipients cannot reapply.
This down payment assistance must be used for primary residences in Hawaii.
The total annual household income limit for 2020 depends on location and number of people in the household:
- Honolulu County
- 2 persons or less: $123,600
- 3 persons or more: $144,200
- Maui County
- 2 persons or less: $107,160
- 3 persons or more: $125,020
- Kauai County
- 2 persons or less: $98,880
- 3 persons or more: $115,360
- Hawaii County
- 2 persons or less: $88,080
- 3 persons or more: $102,760