FIRST-TIME HOMEBUYER PROGRAMS/ BENEFITS - HAWAII

Are you a first-time homebuyer? You may qualify for the following programs! Click to read more.

The Hawaii HomeOwnership Center can also be an option. This organization offers assistance to homebuyers throughout the entire state through their affiliate, HHOC Mortgage, a non-profit mortgage broker. This includes:

  • Down Payment Assistance Loan (DPAL) – This second-mortgage assistance program, for up to $125,000, is paired with a 3-percent down first mortgage. The interest rate is capped at 4.5 percent and is available to buyers whose income does not exceed 120 percent of the area median income.

  • Deferred Closing Cost Loan – This program is a 15-year deferred matching loan with a 6:1 matching basis for up to $15,000. So, for example, if you can contribute $2,500 to your closing costs, you might be able to score $15,000 in assistance. The loan will not accrue interest or require monthly payments.

Qualified homebuyers can enjoy:

  • Low down payment of 10.01% with as little as 3% down payment from the buyer and the remainder from family

  • Waiver of mortgage insurance

  • Maximum loan amount of $1,149,825

  • Maximum loan-to-value ratio of 89.99%

  • Choose from either a fixed-rate or adjustable rate mortgage

  • Fixed rates and low down payments

  • See today's rates and loan terms and conditions, including payment examples

They often come out with seasonal promotions like “Receive up to a 0.50 point discount off your closing costs with FHB Auto-Pay.” Terms and conditions apply.

Qualified buyers will receive the following benefits:

  • 0.50% discount off Mortgage points.**

  • No prepayment penalty

  • Fixed or adjustable interest rate options

  • Variety of terms available

  • Homeownership counseling

HHFDC Mortgage Credit Certificate (MCC)

If you’re a first-time homebuyer in Hawaii, you can obtain a mortgage credit certificate (MCC) that allows you to take 20 percent of your mortgage interest as a dollar-for-dollar tax credit, which can add up to significant savings over the course of a 30-year mortgage. You can qualify for the MCC program if you meet the following conditions:

  • You have not owned a home in the last three years.

  • Your income does not exceed a certain limit, which varies based on household size and county ($107,200 to $163,782).

  • The property you’re purchasing does not exceed a certain limit ($527,526 to $996,440 depending on location).

To get the MCC, you’ll need to get in touch with one of the participating lenders in the program and pay $425 in fees.

The purpose of the City and County of Honolulu's Down Payment Loan Program is to promote homeownership.  The program provides 0% interest loans to qualified individuals to help meet the down payment requirement.  Funding is provided by the U.S. Department of Housing and Urban Development (HUD).

WHO IS ELIGIBLE FOR THE CITY'S DOWN PAYMENT LOAN PROGRAM?  We cannot list every approval condition that could arise but the bulleted items below are among the most common.

  • You must be a U.S. citizen or a U.S. permanent resident.

  • Your gross annual household income (before any deductions) cannot be more than the amounts shown in the table below.  We calculate your household's projected gross income for the next 12-months, starting with the month we receive your application.  

  • Taking into consideration the City's Down Payment "second mortgage" loan, you must be capable of getting a "first mortgage" loan from a commercial lender to finance the remaining portion of the purchase price. 

  • You must meet the definition of a First-Time Home Buyer.  The property you are buying must be your primary residence, and, you cannot have owned (in your own name or together with someone else) a residential property prior to the date of your loan application.