First-time home buyer programs in Hawaii: HHFDC and Honolulu

What is the Hale Kamaʻāina Mortgage Program?

HHFDC describes it as a program for first-time homebuyers that offers a competitive fixed-rate 30-year mortgage, with optional down payment assistance. It is financed with tax-exempt bonds, so the rate is based on the bond rate at the time of sale. HHFDC says the rate is targeted to be at least 50 basis points (0.5 percentage point) below the market, and that the actual gap depends on market changes. HHFDC’s program page posted rates of 5.62% for government loans and 5.87% for conventional loans when we read it on October 13, 2026. Rates change, so ask a participating lender for today’s rate.

You apply through a participating lender, not directly through HHFDC. HHFDC’s application steps are:

1. Contact a participating lender, who checks your eligibility and begins the loan application.
2. Complete homebuyer education with a HUD-certified housing counseling agency.
3. Find a home with a licensed real estate agent and make an offer.
4. Once your offer is accepted, the lender reserves the loan funds from the program.
5. Close the loan with the lender.

Who qualifies?

HHFDC’s eligibility list, as of September 4, 2026, requires that you:

• are a U.S. citizen or resident alien, a Hawaiʻi resident and at least 18;
• have household income within the program limits;
• have received the recapture tax notice;
• have completed homeownership counseling through a HUD-approved agency;
• are financing a property that will be your principal residence.

A first-time homebuyer means that you, including your spouse, have not owned or held an interest in a principal residence within the past three years. HHFDC says exceptions may apply to veterans and to purchases in targeted areas, which are federally designated economically disadvantaged areas with higher limits.

You must move in within 60 days of closing and stay as the owner-occupant for the life of the loan. HHFDC says this rule is “strictly enforced” and that a violation may make the whole balance due. Accessory dwelling units are not eligible, and no more than 15% of the property’s area may be used for a trade or business.

Income and price limits for Honolulu County

Source: HHFDC, Hale Kamaʻāina Mortgage Program eligibility page, as of September 4, 2026.

HHFDC publishes a separate list of targeted-area census tracts; ask your lender whether the home you want is in one. For comparison, the non-targeted price limit is $613,662 in Hawaii County and $1,359,682 in Maui County. The Census Bureau’s median value for Honolulu County homes is $920,600, so many Oahu homes sit above the non-targeted limit. That figure is owners’ own estimates, not sale prices; see our Hawaii home prices page.

What about down payment assistance?

HHFDC’s FAQ describes a second mortgage for down payment assistance. To get it, you must not own other residential property in the state or have received an HHFDC down payment loan before. However, HHFDC states that recent statutory changes (Act 214, Session Laws of Hawaiʻi, 2026) require changes to its administrative rules before it can apply the updated second mortgage terms. When we read the page on October 13, 2026, the new terms were not yet posted. We do not give a down payment assistance amount because HHFDC has not published one. Ask your lender or HHFDC at (808) 587-0578.

Other HHFDC options

One HHFDC page still lists the MCC among its pathways, but the dedicated MCC page says new applications are closed, so treat the MCC as unavailable unless HHFDC says otherwise.

Homes sold through HHFDC-assisted projects often carry deed restrictions. HHFDC says units are owner-occupancy only, and that a buyback right may apply during a restriction period, often 10 years, followed by a shared appreciation equity payment when you sell on the open market. Read the project’s brochure before you commit.

What does the City and County of Honolulu offer?

The City’s Department of Housing and Land Management (DHLM) pages we read describe financing for developers: the Affordable Housing Fund for rentals at or below 60% of area median income, private activity bonds and a multifamily rental program. We found no City down payment or mortgage assistance program for individual buyers on those pages. HHFDC itself sends residents to DHLM for county homebuyer opportunities, so call the department before ruling it out.

DHLM does publish income guidelines that affordable-housing programs use: its 2026 median family income for Honolulu County is $133,400. Its development portfolio includes Varona Village in ʻEwa, where the City, a private partner and Hawaiʻi Habitat for Humanity plan to offer current tenants the chance to buy 46 renovated homes at below-market prices, and to prioritize sales of up to 87 new homes to tenants of record and their families.

What to do next

Estimate the rest of the bill with our Hawaii closing costs guide and property tax guide, and read about buying a home in Honolulu. For federal loans, see FHA loans and VA loans.