First-Time Home Buyer Programs in Hawaii

Hawaiʻi Housing Finance and Development Corporation (HHFDC) Programs:

HHFDC 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 to the program; income and purchase-price limits vary by county and are updated annually. Always confirm current rules and lender lists at dbedt.hawaii.gov/hhfdc or with an approved participating lender.

Hale Kamaʻāina Mortgage Program:

Eligibility: First-time homebuyers (no ownership of a principal residence in the prior 3 years, with some targeted-area or veteran exceptions); Hawaii resident; principal residence required.
Offerings: 30-year fixed mortgage options through participating lenders (government and conventional loan types eligible) plus an optional HHFDC second mortgage down payment assistance program.
Requirements & typical limits:

• Household income and purchase-price limits set by county and targeted vs non-targeted area — see HHFDC for the current tables.
• Minimum FICO: HHFDC guidelines list 660 or above for Hale Kamaʻāina program loans; specific loan products (FHA, VA, USDA, conventional) may have different thresholds. See lender guidance.
• Debt-to-income ratio: typically capped at about 45% under HHFDC lender guidance.
• Homebuyer education: required through a HUD-approved counseling agency for program borrowers.

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 mortgage loan 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. Borrowers may prepay without penalty.
• Minimum borrower contribution: typically 5% of the sales price is required to qualify for the second mortgage (exceptions if borrower declines the second mortgage).

These terms and sample rate examples were published by HHFDC in March 2026. Always confirm current lender rates and final underwriting with your participating lender. For program details see HHFDC Hale Kamaʻāina and the HHFDC program presentation.

Down Payment Assistance Options (nonprofit and local partners):

HHOC Mortgage DPAL: Nonprofit HHOC Mortgage runs a Down Payment Assistance Loan (DPAL) used with eligible first mortgages. Recent program materials show a DPAL that can go up to $125,000 (subject to fund availability). Typical features in HHOC materials: fixed-rate second mortgage with terms up to 30 years, interest set at the lower of the first mortgage rate or about 4.5%, and required homebuyer education. Confirm current caps and origination requirements with HHOC Mortgage. See HHOC materials at HHOC/HHOC Mortgage flyer.

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: City programs historically provide a zero-interest, deferred second mortgage to income-qualified buyers (commonly cited at up to $40,000 with a 20-year amortization). Availability is subject to HOME fund allocations and local administration. Confirm status and income caps with the City Department of Housing and Land Management / Department of Community Services. See the City program pages and brochures at honolulu.gov/dhlm.

Maui County

First-Time Homebuyer Opportunity Program (Hoʻokumu Hou): A CDBG-DR funded program prioritizing wildfire-displaced renters and other eligible first-time buyers up to about 120% AMI. Assistance can include down payment, closing costs, and rate buydowns — program caps and application windows are managed by Maui County. See Maui County Hoʻokumu Hou for current guidance. Maui County Hoʻokumu Hou FAQs.

Statewide Native Hawaiian Focus

Office of Hawaiian Affairs (OHA) — AHO: OHA launched the Access to Home Ownership (AHO) pilot to back deposits and reduce PMI barriers for Native Hawaiian beneficiaries in partnership with American Savings Bank. The pilot described OHA pledges and an initial $1.5M fund to enable purchases with as little as 3% down and no PMI for verified beneficiaries. This is a pilot with limited slots and specific HRP verification. 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 limits. 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 VA Home Loans.
• FHA Loans: Minimum 3.5% down for borrowers with credit scores 580 and above; 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.

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