Down Payment Assistance
Down Payment Assistance in Hawaii (2026)
Hawaii's state down payment assistance runs through the Hawaiʻi Housing Finance and Development Corporation (HHFDC), which has not yet published updated terms for the Hale Kamaʻāina Second Mortgage Loan.
Limits
Set by area — see the agency
income and price limits are set by the agency; see its program pageNew to this? Quick definitions
- DPA —
- down payment assistance. Money — as a grant or loan — that helps cover the upfront cash you'd otherwise need to buy a home.
- Grant vs. loan —
- a grant is money you never repay. A loan (forgivable, deferred, or repayable) can come with strings attached, even at 0% interest.
- Forgivable loan —
- the balance is wiped out over time if you stay in the home — but it's still a real loan until then, and selling or refinancing early can trigger repayment.
- Deferred loan (silent second) —
- a second loan on your home with no monthly payments, often called a "silent second" because you won't notice it until you sell, refinance, or pay off your first mortgage — that's when it comes due.
- AMI —
- Area Median Income. The midpoint household income for your county, used to set eligibility — programs list limits as a percentage of AMI (e.g. 80% of AMI).
- Income limit —
- the maximum household income you can earn and still qualify, based on where you live and how many people are in your household.
- Purchase price cap —
- the maximum home price a program will help you buy — homes priced above the cap don't qualify, even if your income does.
Do you likely qualify?
Income and purchase-price limits for the Hale Kamaʻāina Second Mortgage Loan are set by county and household size — find your county in the programme terms below.
Primary Program: Hale Kamaʻāina Second Mortgage Loan
Hawaiʻi Housing Finance and Development Corporation (HHFDC) has not yet published updated terms for this programme.
- Administering Agency
- Hawaiʻi Housing Finance and Development Corporation (HHFDC)
How Down Payment Assistance Works
Most state DPA programs are layered on top of a first mortgage — you apply through an approved lender who originates both the primary loan and the DPA second lien at the same closing. The DPA funds reduce the cash you need upfront.
Grants
Free money — no repayment ever. Typically the smallest amounts but highest value.
Forgivable Loans
Balance forgiven after a set period (usually 3–15 years) if you stay in the home. Selling early triggers repayment.
Deferred Loans
No monthly payments. Balance due when you sell, refinance, or pay off your mortgage.
Mistakes first-time buyers make
- Assuming you don't qualify without actually checking the income limit for your county and household size.
- Treating a "forgivable" loan as free money — it can still come due in full if you sell or refinance before the forgiveness term ends.
- Stacking programs incorrectly, or assuming state and local programs combine automatically without confirming with your lender.
- Skipping the required homebuyer education course, which can delay or disqualify your application at closing.
Pro tips
- Talk to a HUD-approved housing counselor first — it's free and they know every program you may qualify for, not just the state's.
- Apply for mortgage pre-approval alongside your DPA program application; most DPA funds are disbursed through an approved lender at the same closing.
- Check local city and county programs in addition to the state program above — many are stackable and cover different costs.
- Ask exactly what triggers repayment on any loan-based assistance before you sign, not after.
Down Payment Calculator
Down Payment Planner
Hawaii median pre-loaded
Your Savings Plan
Timeline
28.1 yrs
saving $500/mo
No PMI at 20% down
20% or more avoids private mortgage insurance entirely.
Estimate only — does not include investment returns on savings.
Full Calculator →Hawaii Assistance Programs, Term by Term
Hawaiʻi Housing Finance and Development Corporation (HHFDC)
Hale Kamaʻāina Mortgage Program – Second Mortgage Loan (down payment assistance; formerly Hula Mae)
other (Hawaiʻi Housing Finance & Development Corporation (HHFDC), retrieved 2026-09-14)
- Repayment
- Not currently published: HHFDC states updated Second Mortgage Loan Terms await administrative-rule amendments required by Act 214, SLH 2026; financed with tax-exempt bonds (federal recapture tax may apply on sale within nine years)
- Income limit
- Hale Kamaʻāina first-mortgage limits (as of June 13, 2026), by county and household size: Honolulu $154,805 (1-2) / $178,025 (3+) non-targeted, $184,800 / $215,600 targeted; Hawaii County $126,500 / $145,475 non-targeted; Kauai $163,080 / $190,260; Maui $177,600 / $207,200; Kalawao $146,280 / $170,660 non-targeted
- Purchase price limit
- As of June 13, 2026: Honolulu $866,346 non-targeted / $1,058,867 targeted; Hawaii County $613,662 / $750,031; Kauai $1,162,348; Maui and Kalawao $1,359,682 / $1,661,833
- First-time buyer rule
- Yes — borrower and spouse must not have owned or held an interest in a principal residence in the past three years (exceptions may apply for veterans or targeted areas); for the second mortgage, must not own other residential property in Hawaii and must not have previously received an HHFDC down payment loan
- Homebuyer education
- Homeownership counseling through a HUD-certified/approved housing counseling agency required
- First mortgage it pairs with
- Hale Kamaʻāina 30-year fixed-rate first mortgage through an HHFDC participating lender (government and conventional loans; Dec 2025 launch rates 5.65% government / 5.95% conventional when paired with DPA)
HHFDC Equity Pilot (Dwelling Unit Revolving Fund Equity Pilot, DURF DEP)
deferred second (Hawaiʻi Housing Finance & Development Corporation (HHFDC), retrieved 2026-09-14)
- Assistance
- Project-specific: Kuilei Place $103,300 contribution per designated 2-bedroom unit; Kahuina 15% of sales price (1-bedroom) / 10% (2-bedroom)
- Repayment
- Zero-percent, 30-year second mortgage under which HHFDC purchases a portion of the unit's equity; the buyer repays the disbursed amount under the programme's terms
- Income limit
- Must be HHFDC-approved for the affordable unit (income limit amounts not stated on page)
- Purchase price limit
- Designated units only (e.g. Kuilei Place starting at $523,400 fee simple)
- First-time buyer rule
- Must not own any real property anywhere in the world
- First mortgage it pairs with
- First mortgage from the project's preferred lender (no outside lenders); buyer must work in an HHFDC-designated shortage profession, receive no gift funds, and be an owner-occupant
HHFDC Mortgage Credit Certificate (MCC)
MCC (Hawaiʻi Housing Finance & Development Corporation (HHFDC), retrieved 2026-09-14)
- Repayment
- Federal income tax credit on a portion of annual mortgage interest (not a loan)
- First-time buyer rule
- Qualified first-time buyers
- First mortgage it pairs with
- Available only through HHFDC 2026 MCC participating lenders
City and county programmes
- City and County of Honolulu Down Payment Loan Program (HOME-funded) (City and County of Honolulu (Oʻahu), Department of Community Services): $40,000 second-mortgage loan at 0% interest for first-time homebuyers with household income up to 80% of AMI for Oʻahu; borrower must contribute at least 5% of the sales price; funds usable only as additional down payment; Owner Occupancy Credit up to $20,000 after the 10-year HOME affordability period (City and County of Honolulu, Department of Community Services, retrieved 2026-09-14)
- County of Maui First-Time Home Buyer’s Down Payment Assistance Program (County of Maui, Department of Housing & Human Concerns): Grant up to the lesser of $30,000 or 5% of purchase price/appraised value; lien runs in perpetuity; household income 140% or less of county median; lottery during scheduled application periods; HUD-approved homebuyer education required (County of Maui, Department of Housing & Human Concerns, Housing Division, retrieved 2026-09-14)
What the Assistance Does on a $841,700 Hawaii Home
A worked example at Hawaii's median home price (Zillow Home Value Index, April 2026), using the same payment model as the Hawaii salary page: a 7.03% 30-year fixed rate (Freddie Mac PMMS, week of September 24, 2026), PMI from the National MI rate card on the 10%-down case, the state's effective property-tax rate and homeowners premium, and principal, interest, tax and insurance held to 28% of gross income.
Whether a household under the income limit can carry it
Carrying the median home takes $203,057 a year with 20% down, or $239,571 with 10% down and PMI. The first-mortgage income limit at Hawaii Housing Finance and Development Corporation (HHFDC) is $154,805 (Honolulu County, non-targeted, 1-2 person households ($178,025 for 3+); as of June 13, 2026). (Hawaii Housing Finance and Development Corporation, retrieved 2026-09-14) No household under that limit can carry the median home at a 28% ratio, even with 20% down. At exactly $154,805, the same model supports a price of about $639,376, $202,324 below the median — the realistic ceiling for a buyer using this programme.
The First Mortgage and Closing Taxes This Assistance Has to Cover in Hawaii
Conveyance Tax
Hawaii's conveyance tax is charged on the full sale price at a single bracket rate from $0.10 to $1.00 per $100, with higher rates ($0.15 to $1.25 per $100) when a home or condo buyer is not eligible for a county homeowner's exemption (e.g. investors or second-home buyers). (HRS Chapter 247 (§ 247-2 rates)). (Hawaii Department of Taxation, retrieved 2026-09-14) Under that schedule a $841,700 sale owes $1,683, which the statute puts on the seller.
Recording fees
Bureau of Conveyances (statewide): Regular System $41.00 per document up to 50 pages, $106.00 for 51+ pages; Land Court $36.00 per document up to 50 pages, $101.00 for 51+ pages. (Hawaii Department of Land and Natural Resources, Bureau of Conveyances, retrieved 2026-09-14)
Hawaii Housing Finance and Development Corporation (HHFDC): Hale Kamaʻāina Mortgage Program (tax-exempt bond, 30-year fixed, first-time homebuyers)
Hale Kamaʻāina Mortgage Program (tax-exempt bond, 30-year fixed, first-time homebuyers) is the first-mortgage programme run by Hawaii Housing Finance and Development Corporation (HHFDC). (Hawaii Housing Finance and Development Corporation, retrieved 2026-09-14) Its purchase-price limit is $866,346 (Honolulu County, non-targeted areas (targeted $1,058,867); varies by county: Hawaii County $613,662 to Maui/Kalawao $1,359,682 non-targeted; as of June 13, 2026), so a $841,700 home is within it. (Hawaii Housing Finance and Development Corporation, retrieved 2026-09-14) The income limit is $154,805 (Honolulu County, non-targeted, 1-2 person households ($178,025 for 3+); as of June 13, 2026). (Hawaii Housing Finance and Development Corporation, retrieved 2026-09-14)
Frequently Asked Questions
What down payment assistance is available in Hawaii?
Hawaii's primary DPA program is the Hale Kamaʻāina Second Mortgage Loan, administered by the Hawaiʻi Housing Finance and Development Corporation (HHFDC). The agency has not yet published its updated assistance terms.
Can I combine Hawaii DPA with other assistance programs?
Hawaii's state DPA may have restrictions on combining with other assistance programs. Verify stacking rules with an approved lender before applying.
What are the income limits for Hawaii down payment assistance?
The Hale Kamaʻāina Second Mortgage Loan does not publish its income limit as a single percentage of AMI; limits are set in dollars by county and household size. Check the Hawaiʻi Housing Finance and Development Corporation (HHFDC) website for current limits in your area.
Related Calculators
Home Affordability Calculator
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PMI Calculator
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Hawaii First-Time Buyer Programs
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Mortgage Payments by Price
See full PITI costs for 8 home prices in Hawaii, from $200K to $750K
What to do next
Down payment assistance is one piece of the puzzle. Here's where to go depending on where you are in the process.
Not sure if you qualify?
Check the Hawaiʻi Housing Finance and Development Corporation (HHFDC) income limits above before ruling yourself out — many buyers qualify without realizing it.
Want the full true cost picture?
DPA covers the down payment, not your ongoing costs. See the true cost of owning a home in Hawaii for the full monthly picture.
Ready to apply?
Most DPA funds are disbursed through an approved lender at closing — get pre-approved and ask specifically about Hale Kamaʻāina Second Mortgage Loan when you apply.