Hawaiʻi Housing Finance and Development Corporation (HHFDC) Programs:
Updated October 1, 2026HHFDC runs the Hale Kamaʻāina program for first-time buyers. It pairs competitive 30‑year fixed mortgages with optional down payment assistance and targeted-area flexibilities. HHFDC initially allocated $30 million for the first round; income and purchase-price limits vary by county and are published by HHFDC. Always confirm current rules and lender lists with HHFDC or an approved participating lender: HHFDC Hale Kamaʻāina.
Hale Kamaʻāina Mortgage Program:
Eligibility: First-time homebuyers (no ownership of a principal residence in the prior 3 years, with some veteran or targeted-area exceptions); Hawaiʻi resident; principal residence required.
Offerings: 30‑year fixed mortgage options through participating lenders (government loans and conventional loan pathways eligible) plus an optional HHFDC second‑mortgage down payment assistance product.
Requirements & typical limits:
- Household income and purchase‑price limits are set by county and targeted vs. non‑targeted area — see HHFDC for current tables and county caps. HHFDC income & purchase-price limits.
- Minimum FICO: HHFDC presentation guidance lists 660 or above for program pricing; specific loan products (FHA, VA, USDA, conventional) may have different thresholds — check your lender. See HHFDC program presentation for examples. HHFDC presentation (Mar 9, 2026).
- Debt-to-income ratio: commonly capped near 45% under HHFDC lender guidance (lender overlays may vary).
- Homebuyer education: required through a HUD-approved counseling agency for program borrowers; HHFDC lists approved counseling resources on the program page.
Hale Kamaʻāina Down Payment Assistance:
HHFDC offers a soft second mortgage tied to the Hale Kamaʻāina program:
- Amount: a second mortgage equal to 4% of the first mortgage amount (example: 4% of a $500,000 mortgage = $20,000).
- Terms: 1% simple interest, no monthly payments; due on sale, refinance, transfer, or mortgage maturity. Prepayment allowed without penalty.
- Minimum borrower contribution: typically 5% of the sales price is required to qualify for the second mortgage (borrowers who decline the second mortgage are not subject to the 5% requirement).
These specific DPA terms and program examples come from HHFDC materials and the March 9, 2026 presentation; confirm final lender pricing and current income/purchase caps with HHFDC or a participating lender. See official HHFDC program pages and presentation: HHFDC Hale Kamaʻāina and the program presentation (Mar 9, 2026).
Down Payment Assistance Options (nonprofit and local partners):
HHOC Mortgage DPAL: Nonprofit HHOC Mortgage operates a Down Payment Assistance Loan (DPAL) that can substitute for mortgage insurance when HHOC originates the first mortgage. HHOC’s site currently shows a DPAL maximum of $125,000, fixed/linked interest terms, and required homebuyer education. Availability depends on fund supply and program rules — confirm directly with HHOC. See: HHOC Mortgage — Loan Products.
Local & County Programs (examples):
Counties and local nonprofits run additional deferred or forgivable assistance. Funding is limited and application windows vary — check the county site before advising clients.
Honolulu / Oʻahu
Honolulu Down Payment Loan Program: The City & County of Honolulu Department of Community Services lists a zero‑interest, second‑mortgage down payment loan for income‑qualified buyers. Official materials currently show loans up to $40,000 with a required borrower contribution of 5% of the sales price and 80% AMI eligibility for Oʻahu — confirm status and income caps with the City DCS page and brochure: honolulu.gov DCS — Down-Payment Loan.
Maui County
First-Time Homebuyer Opportunity Program (Hoʻokumu Hou / HOP): Maui County’s CDBG-DR program includes HOP. The County FAQs show HOP prioritizes renters displaced by the 2023 wildfires while remaining open to first-time buyers up to 120% AMI; maximum program awards can be large (the FAQ notes a $600,000 maximum award depending on unmet need). Application windows and funding are managed by Maui County — check the HOP FAQs for current status. Maui County Hoʻokumu Hou FAQs.
Statewide Native Hawaiian Focus
Office of Hawaiian Affairs (OHA) — AHO: OHA’s Access to Home Ownership (AHO) is a deposit-backed guarantee program administered with American Savings Bank that can reduce or eliminate PMI and enable purchases with as little as 3% down for verified OHA-eligible beneficiaries. The AHO page describes a pledge (up to 17% in examples) and a three‑phase application/referral process; it’s a limited/referral program — see OHA AHO for eligibility and application steps.
Additional Federal Options:
- USDA Rural Development: 0% down guaranteed loans in eligible rural areas; income and area eligibility rules apply. See USDA RD for maps and program rules. rd.usda.gov.
- VA Loans: Eligible veterans and active-duty service members often qualify for no‑down‑payment financing (subject to entitlement and lender approval). See the VA for official eligibility rules. VA Home Loans.
- FHA Loans: Minimum 3.5% down for borrowers meeting FHA credit criteria; FHA underwriting and mortgage insurance rules apply. See HUD for FHA details. hud.gov.
Hawaii programs change as funding and policy shift. For fastest confirmation, contact an HHFDC‑approved lender, program administrator, or the county housing office.
Seeking Agents® connects you with Hawai'i agents experienced in these programs who compete to offer reduced commissions or added services—free for buyers/sellers.