Hawaii Mortgage Overview
Hawaii is a gorgeous place to live, but
it's also one of the most expensive. Hawaii has higher conforming loan limits
to account for its higher cost of living. In 2021, you can borrow up to
$822,375 and the median home value is $615,300.
Hawaii has many first-time homebuyer
programs to make it easier to buy a home there and not all of its 8 islands are
as expensive. If you're thinking about moving to Hawaii, here are the most
common loan options.
Hawaii conventional loans
are for 'good credit' borrowers. Typically, you need a 660 credit score or
higher and debt ratios around 40 percent. You only need a 3 percent down
payment as a first-time homebuyer, but many Hawaiians put down much more to
bring the mortgage payment down.
Hawaii FHA loans
The FHA offers flexible loans
for borrowers with less than perfect credit. You only need a 3.5 percent down
payment and a 580 credit score, but you'll pay mortgage insurance for the life
of the loan. FHA loans allow gift funds for down payments, so think about a
larger down payment to lower the mortgage cost.
Hawaii VA loans
Veterans looking to settle in
Hawaii deserve only the best. The VA offers 100 percent financing for veterans
and you only need a 620 credit score. With adequate income and stable
employment, you could qualify for lucrative and flexible financing terms as a
thank you for serving our country.
Hawaii USDA loans
What could be better than
living in a rural part of Hawaii, right? If you make less than 115% of the
area's median income, you may be eligible for a Hawaii USDA loan which offers
100 percent financing and flexible guidelines for first-time homebuyers.
First-Time Homebuyer Programs in Hawaii
HHOC Mortgage Down Payment Assistance
The HHOC serves low to
moderate-income families, helping them secure their first mortgage. Borrowers
need just 5 percent down. The program has no mortgage insurance and low
The Down Payment and Closing Cost
program helps homebuyers who make 120 percent or less of the area's median
income get up to $10,000 for the down payment and closing costs on their first
home. This is in conjunction with an HHOC mortgage.
Honolulu Down Payment Program
Down Payment Program provides up to $40,000 in a down payment. You must
contribute at least $5,000 too. There is no interest and the loan is amortized
over 20 years.