Hawaii Down Payment Assistance 2026: Grants & Loans

· ✓ Last verified Jul 1, 2026 · November 14, 2025 · by AskDoss Editorial Team ·Real Estate · 7 min read

Hawaii has the steepest down payment math in the country. With the state’s typical home value around $836,677 (Zillow Home Value Index, 2026), an FHA loan’s 3.5% minimum down payment is roughly $29,300 — and on Oʻahu, where single-family medians run past $1 million, it’s higher still. Down payment assistance (DPA) is how many local buyers bridge that gap.

The help comes from three places: the state housing finance agency (HHFDC), a long-running nonprofit lender (the Hawaii HomeOwnership Center), and county programs led by Honolulu. This guide covers what’s actually available in 2026, who qualifies, and — just as important — which programs have paused or closed, so you don’t build a plan around money that isn’t there.

Two definitions to get straight before you start:

  • First-time buyer under most Hawaii programs means you have not owned a primary residence in the past three years. Prior ownership doesn’t automatically disqualify you.
  • Grant vs. forgivable loan vs. deferred second mortgage — see the box under the comparison table. The structure decides whether and when you repay, which matters enormously at Hawaii price points.

State Housing Finance Agency Programs

The Hawaiʻi Housing Finance & Development Corporation (HHFDC) is the state’s housing finance agency. You don’t apply to HHFDC directly — its programs are originated through approved mortgage lenders.

HHFDC Hale Kamaʻāina Mortgage Program

Launched in 2026, Hale Kamaʻāina is HHFDC’s current first-mortgage-with-assistance program for resident, owner-occupant buyers. It pairs a fixed-rate first mortgage with optional down payment help.

  • Down payment assistance: Up to 4% of the first-mortgage loan amount, structured as a deferred soft second mortgage.
  • Structure: A second mortgage with payments postponed; the balance comes due at payoff, sale, refinance, or transfer of title. Confirm the exact note rate with your lender, as pairing the DPA adds a small premium to the first-mortgage rate.
  • Minimum credit score: 660.
  • Loan types: FHA, VA, USDA-RD, and HFA conventional (Fannie Mae HFA Preferred / Freddie Mac HFA Advantage).
  • Eligibility: First-time buyer (no primary-residence ownership in the past three years), bona fide Hawaii resident, owner-occupant.
  • Education: HUD-approved homeownership counseling is required for everyone on title.

Income and purchase-price limits vary by household size and island and are updated periodically — ask your lender to run HHFDC’s current limit table for your county. Because the assistance is a repayable second lien, factor that balance into any plan to sell or refinance.

Hawaii HomeOwnership Center (HHOC Mortgage)

HHOC is a HUD-approved nonprofit lender that has offered statewide down payment help to first-time Hawaii buyers for years. Its products are separate from HHFDC’s and worth comparing side by side.

  • Down Payment Assistance Loan (DPAL): Up to $125,000 as a deferred second mortgage, used to reach the down payment without monthly mortgage insurance. Higher credit and savings expectations apply; confirm current terms.
  • Mortgage Booster: A below-market fixed-rate first-mortgage component, capped around $50,000, for buyers putting at least 3% down.
  • Deferred Closing Cost Assistance Loan: Up to $10,000 ($5,000 in Honolulu County), 0% interest with no payments for 15 years, for buyers at or below 80% of area median income who can match it with their own savings.

All HHOC programs require homebuyer education and first-time-buyer status. Exact credit-score and income thresholds vary by product, so confirm the current sheet with HHOC before counting on a specific number.

Local and County DPA Programs

Honolulu (City & County) Down Payment Loan Program

The City & County of Honolulu runs one of the strongest county programs in the state through its Department of Community Services.

  • Amount: Up to $40,000.
  • Structure: 0% interest, partially forgivable loan amortized over 20 years — a portion is forgiven for each year you stay and pay on time.
  • Income limit: At or below 80% of area median income.
  • Requirements: Primary residence and a City-approved homebuyer education course.

Maui, Hawaiʻi, and Kauaʻi Counties

Maui County’s First-Time Homebuyer Opportunity Program was tied to wildfire disaster-recovery funding and stopped accepting applications in late 2025 — verify directly with the Maui County housing office whether a new cycle has opened before relying on it. Hawaiʻi County and Kauaʻi County run their own assistance from time to time; availability and amounts change with funding, so confirm with each county’s housing office.

Native Hawaiian buyers

The Office of Hawaiian Affairs has moved into homeownership assistance for Native Hawaiian buyers. Contact OHA directly for current program terms.

Eligibility Comparison Table

Program Type Max Amount Income Limit Min Credit First-Time Only
HHFDC Hale Kamaʻāina DPA Deferred soft 2nd mortgage 4% of loan amount Varies by household/island 660 Yes
HHOC DPAL Deferred 2nd mortgage Up to $125,000 Up to ~130% AMI Varies (higher) Yes
HHOC Deferred Closing Cost Loan 0% deferred loan (15 yr) $10,000 ($5,000 Honolulu) ≤80% AMI Varies Yes
Honolulu Down Payment Loan 0% partially forgivable (20 yr) $40,000 ≤80% AMI Varies Typically yes

Grant vs. forgivable loan vs. deferred second mortgage:

  • Grant — money you keep; no repayment.
  • Forgivable loan — reduced toward $0 the longer you stay (Honolulu’s program forgives over its 20-year term). Sell early and you repay the unforgiven portion.
  • Deferred second mortgage — a real loan you’ll repay, but payments are postponed until you sell, refinance, or pay off the first mortgage. HHFDC’s Hale Kamaʻāina DPA and HHOC’s DPAL are deferred second liens.

A Note on the Mortgage Credit Certificate (MCC)

HHFDC’s Mortgage Credit Certificate — a federal tax credit worth 20% of annual mortgage interest — is no longer open to new applicants. Only existing certificate holders can apply for reissuance (for example, on a refinance). If an older guide tells you to get a Hawaii MCC as a new buyer, that information is out of date.

How to Apply for Down Payment Assistance in Hawaii

  1. Run your numbers first. Estimate your price range and the cash you’ll need, then check your credit so you can clear the 660 minimum for Hale Kamaʻāina. Our closing costs in Hawaii guide covers the other cash you’ll owe at the table.
  2. Get pre-approved with a participating lender. HHFDC and HHOC programs run through approved lenders, not the agencies directly. Start with a Hawaii mortgage lender and ask specifically about Hale Kamaʻāina, HHOC DPAL, and the Honolulu Down Payment Loan.
  3. Complete homebuyer education early. Every program here requires it. Finishing during pre-approval keeps it from delaying your closing.
  4. Confirm current income, price, and funding status. Hawaii’s limits change and county programs can pause mid-year. Verify each program is open and that you fit its current limits before you write an offer.
  5. Submit with your purchase contract. Once under contract, your lender packages the DPA with the first mortgage. Keep your income documents and education certificate handy.

For the full purchase path, see our step-by-step Hawaii home buying guide and our Hawaii first-time buyer programs guide.

Common Mistakes to Avoid

Assuming all DPA is free money

Only some of these are grants or forgivable. HHFDC’s Hale Kamaʻāina DPA and HHOC’s DPAL are deferred second mortgages you’ll repay. Know the structure before you sign.

Building a plan around a closed program

Hawaii’s MCC is closed to new buyers and Maui’s FTHB program paused in late 2025. Confirm a program is actually accepting applications this year before you count on it.

Underestimating cash-to-close at Hawaii prices

A 3.5% FHA down payment on a typical Hawaii home is roughly $29,300, but you’ll also owe closing costs, and FHA loans carry mortgage insurance (see the FAQ). Budget the full cash-to-close.

Not confirming island-specific limits

Income and price limits differ by island and household size, and county funds run on annual budgets. Verify current figures with the administering office, not last year’s flyer.

Neighboring and high-demand state programs:

Frequently Asked Questions

How much down payment do I need to buy a house in Hawaii?

With an FHA loan, the minimum is 3.5% of the purchase price. On Hawaii’s typical home value of about $836,677 (Zillow, 2026), that’s roughly $29,300 — and more on Oʻahu, where single-family prices commonly top $1 million. Conventional loans can go as low as 3% down, and DPA programs like HHFDC’s Hale Kamaʻāina or HHOC’s DPAL can cover part of the gap.

Is HHFDC’s Hale Kamaʻāina assistance a grant I don’t repay?

No. The Hale Kamaʻāina down payment assistance is a deferred soft second mortgage of up to 4% of the loan amount. Payments are postponed, but the balance is repayable when you sell, refinance, or pay off the loan. Confirm the exact terms with your lender.

What credit score do I need for Hawaii down payment assistance?

HHFDC’s Hale Kamaʻāina program requires a minimum 660 credit score. HHOC products and county programs set their own thresholds, several of which run higher, so confirm the current requirement for the specific program you want.

Can I still get a Hawaii Mortgage Credit Certificate (MCC)?

Not as a new buyer. HHFDC’s MCC is closed to new applicants and only processes reissuances for existing certificate holders. Don’t plan your purchase around obtaining a new Hawaii MCC.

What is FHA mortgage insurance and will I pay it?

FHA loans require mortgage insurance: an upfront premium of 1.75% of the loan amount (which can be financed) plus an annual premium, typically around 0.55% of the balance, paid monthly. With less than 10% down, FHA mortgage insurance generally stays for the life of the loan. It’s separate from your down payment.

Do I have to be a first-time buyer to get help in Hawaii?

For most of Hawaii’s programs, yes — HHFDC’s Hale Kamaʻāina and HHOC’s products are aimed at first-time buyers, generally defined as not having owned a primary home in the past three years. Confirm each program’s rule, since county programs vary.

Sources

  • Hawaiʻi Housing Finance & Development Corporation (HHFDC) — Hale Kamaʻāina Mortgage Program and Mortgage Credit Certificate pages
  • Hawaii HomeOwnership Center (HHOC Mortgage) — loan product pages (DPAL, Mortgage Booster, Deferred Closing Cost Assistance Loan)
  • City & County of Honolulu, Department of Community Services — Down Payment Loan Program
  • Maui County Office of Housing — First-Time Homebuyer Opportunity Program (application status)
  • U.S. Department of Housing and Urban Development (HUD) — FHA loan requirements and mortgage insurance
  • Zillow — Hawaii Home Value Index (typical value), 2026
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