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State Guide

First-Time Homebuyer Programs in Hawaii

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Overview

Hawaii first-time homebuyer assistance is led by the Hawaii Housing Finance and Development Corporation (HHFDC), the state housing finance agency. HHFDC's flagship Hula Mae Single Family program is Hawaii's primary first-time buyer mortgage, providing below-market 30-year fixed-rate first mortgages with up to $40,000 in down payment and closing cost assistance to reflect Hawaii's extreme purchase prices. HHFDC also runs the Affordable Resale Program, which lets buyers purchase deed-restricted affordable units at below-market prices in exchange for long-term resale restrictions. The Federal Home Loan Bank of Des Moines Homeownership Set-Aside Program is available to Hawaii buyers through participating member lenders for additional down payment grant assistance. In Honolulu, the City and County of Honolulu Down Payment Loan Program provides up to $40,000 as a deferred loan - sized to reflect Hawaii's extreme prices - and in Maui County the Maui County Down Payment Assistance Program provides up to $20,000, both designed to stack with HHFDC financing.

Down Payment Assistance Programs

  • HHFDC Hula Mae Single Family Program. Hawaii's flagship first-time buyer mortgage product, administered by HHFDC. Hula Mae provides a below-market 30-year fixed-rate first mortgage with FHA, VA, USDA-RD, or conventional underwriting through HHFDC-approved lenders, with up to $40,000 in down payment and closing cost assistance to address Hawaii's extreme purchase prices. Available to first-time buyers (defined as not having owned a primary residence in the past 3 years, with waivers in targeted areas and for qualifying veterans) within HHFDC's income and purchase price limits. Hula Mae is the platform that most Hawaii first-time buyer programs are layered onto.
  • HHFDC Affordable Resale Program. An HHFDC program that lets income-qualified buyers purchase deed-restricted affordable units at below-market prices in exchange for long-term resale restrictions (typically a multi-year owner-occupancy and resale-price-control period). The trade-off is access to a meaningfully lower purchase price in exchange for limits on future appreciation and resale flexibility. Affordable Resale units can be financed with Hula Mae and other HHFDC products, and the resale restriction documentation must be reviewed by an HHFDC-approved lender and the buyer's attorney before closing.
  • Federal Home Loan Bank of Des Moines Homeownership Set-Aside Program (Hawaii). A grant program funded by the Federal Home Loan Bank of Des Moines, available to Hawaii buyers through participating FHLB member lenders. Provides down payment and closing cost grant assistance (no repayment if owner-occupancy and other program requirements are met for the required period). Available to first-time buyers within FHLB program income limits and compatible with Hula Mae and with city or county DPA programs in Honolulu and Maui County. Ask any FHLB Des Moines member lender operating in Hawaii whether current funding is available - grant cycles open and close based on annual FHLB allocations.

Income and Purchase Price Limits

HHFDC income and purchase price limits vary by county and household size, with higher limits in targeted areas. Income limits are set at the county level using HUD area median income tiers and household size; Hawaii's HUD AMI figures are among the highest in the country, which translates into higher dollar income limits than most mainland states despite local cost-of-living constraints. Purchase price limits are similarly elevated and vary significantly between Oahu, Maui, Hawaii Island, and Kauai. The Affordable Resale Program uses separate, generally lower income limits tied to each individual deed-restricted unit. Always confirm current HHFDC, FHLB Des Moines, and county income and purchase price limits with an HHFDC-approved lender or at dbedt.hawaii.gov/hhfdc before assuming eligibility.

County Programs Worth Knowing

The City and County of Honolulu and Maui County each run county-level down payment assistance programs designed to stack with HHFDC's Hula Mae Single Family Program. Both are income restricted and require HUD-approved homebuyer education before application.

  • City and County of Honolulu Down Payment Loan Program. Up to $40,000 in down payment and closing cost assistance for income-qualified first-time buyers purchasing a primary residence in the City and County of Honolulu - one of the largest county-level DPA awards in the country, sized to reflect Hawaii's extreme purchase prices. Structured as a deferred second mortgage with multi-year continuous owner-occupancy requirements, HUD-approved homebuyer education required, and designed to stack with HHFDC's Hula Mae first mortgage. Funding cycles can exhaust mid-year - confirm availability with the Honolulu Department of Community Services before applying.
  • Maui County Down Payment Assistance Program. Up to $20,000 in down payment and closing cost assistance for income-qualified first-time buyers purchasing a primary residence in Maui County. Structured as a deferred or forgivable second mortgage with multi-year continuous owner-occupancy requirements, HUD-approved homebuyer education required, and designed to stack with HHFDC financing. Confirm availability with the County of Maui Department of Housing and Human Concerns before applying, as funding cycles can exhaust mid-year. (Hawaii County and Kauai County run smaller or more situational programs that are best confirmed through the county housing offices directly.)

Both county programs run on funding cycles that can exhaust mid-year, and homebuyer education must be completed before application - not after offer acceptance. The county agency review step extends closing timelines by several weeks beyond a standard HHFDC-only closing; plan that into the front of your timeline and confirm current funding availability with the administering agency before counting on it in your offer. Affordable Resale units carry their own documentation review timelines that should be factored in separately.

FHA Loan Requirements in Hawaii

FHA loans are widely used by Hawaii first-time buyers and are compatible with the HHFDC Hula Mae Single Family Program, the Affordable Resale Program, the Federal Home Loan Bank of Des Moines Homeownership Set-Aside Program, the City and County of Honolulu Down Payment Loan Program, and the Maui County Down Payment Assistance Program. FHA loan limits in Hawaii are significantly elevated above the standard single-family ceiling in all counties to reflect Hawaii's purchase prices, with the highest limits in Honolulu County and Maui County.

Minimum requirements to qualify for an FHA loan in Hawaii:

  • Credit score: 580 or higher for 3.5% down payment with standard FHA. HHFDC programs typically require 640 or higher.
  • Down payment: 3.5% of the purchase price with a 580+ credit score. HHFDC Hula Mae assistance (up to $40,000) plus a county DPA program in Honolulu (up to $40,000) or Maui (up to $20,000) can fully cover this and most closing costs even on Hawaii purchase prices - the largest local stacks in the country.
  • Debt-to-income ratio (DTI): Generally 45% or below for HHFDC (FHA itself allows up to 50% with compensating factors).
  • Employment history: Two years of consistent employment or verifiable income history.
  • Primary residence: FHA loans require owner occupancy - not eligible for investment properties or vacation homes.
  • Mortgage insurance: FHA loans require an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, plus an annual premium of 0.45% to 1.05%.

FHA loan limits in Hawaii for 2025:

FHA loan limits in Hawaii are significantly elevated above the standard single-family ceiling in all counties to reflect Hawaii's extreme purchase prices, with the highest limits in Honolulu County and Maui County. Confirm the current FHA limit for your target county at HUD.gov - and confirm with your lender that the target purchase price fits within both the FHA ceiling and any HHFDC purchase price cap.

Stacking FHA with HHFDC, FHLB, and county DPA programs:

The most efficient structure for an Oahu first-time buyer is an FHA-backed HHFDC Hula Mae first mortgage layered with Hula Mae's built-in DPA (up to $40,000) and the City and County of Honolulu Down Payment Loan Program (up to $40,000) - up to roughly $80,000 in combined assistance, the largest local stack in the United States and a direct response to Honolulu's median sale prices. In Maui County the comparable stack is HHFDC Hula Mae plus the Maui County Down Payment Assistance Program (up to $20,000) for up to roughly $60,000 in combined assistance. Buyers should also ask their lender whether FHLB Des Moines Set-Aside grant funds are currently available to layer on top, and whether an Affordable Resale unit might be a better path than a standard market-rate purchase. An HHFDC-approved lender experienced with the relevant county program and with FHLB Des Moines grant scheduling can confirm which combination applies.

How to Apply

  1. Check your credit score - 580 is the FHA minimum for 3.5% down, and HHFDC typically requires 640 or higher.
  2. Review current HHFDC income and purchase price limits for your county at dbedt.hawaii.gov/hhfdc - and confirm your target purchase price fits within both HHFDC and FHA county limits.
  3. Ask your HHFDC-approved lender whether the Affordable Resale Program is a better path than a market-rate purchase - the lower purchase price often more than offsets the long-term resale restrictions for buyers planning to stay long-term.
  4. Ask any FHLB Des Moines member lender operating in Hawaii whether Homeownership Set-Aside grant funds are currently available - grant cycles open and close based on annual FHLB allocations and can layer on top of Hula Mae and county DPA.
  5. If you're buying in the City and County of Honolulu, contact the Honolulu Department of Community Services to confirm Down Payment Loan Program eligibility and current funding (up to $40,000 - among the largest county-level DPA awards in the country).
  6. If you're buying in Maui County, contact the County of Maui Department of Housing and Human Concerns to verify Down Payment Assistance availability and current funding.
  7. If you're buying in Hawaii County or Kauai County, contact the county housing office directly to confirm whether a county DPA program is currently available - programs in these counties tend to be smaller and more situational than Honolulu's or Maui's.
  8. Complete a HUD-approved homebuyer education course - required by HHFDC, by both featured county programs, and by FHLB Des Moines.
  9. Apply through your HHFDC-approved lender, who will coordinate the Hula Mae application, the FHLB Des Moines grant submission (if available), and any county DPA approval simultaneously. For Affordable Resale units, the lender will also coordinate the deed restriction documentation review.

FAQ

Why is Hawaii's DPA so much larger than other states?

Hawaii's median sale prices are among the highest in the country - meaningfully higher than even most coastal mainland markets - and the state's housing supply is structurally constrained by land availability. HHFDC's Hula Mae assistance (up to $40,000) and the City and County of Honolulu Down Payment Loan Program (up to $40,000) are both sized to that price reality: the same percentage of purchase price that $10,000 covers in a typical mainland state requires substantially more dollar assistance in Hawaii. The Maui County program (up to $20,000) is sized similarly. Combined stacks in Honolulu can reach roughly $80,000 in DPA - among the largest first-time buyer assistance packages in the United States.

What is the Affordable Resale Program and is it right for me?

Affordable Resale lets income-qualified buyers purchase deed-restricted affordable units at below-market prices in exchange for long-term resale restrictions (typically multi-year owner-occupancy and resale-price-control terms). The trade-off is access to a meaningfully lower purchase price now in exchange for limits on future appreciation when the buyer sells. Affordable Resale is often the strongest path for first-time buyers who plan to stay long-term and who would otherwise be priced out of the market entirely - but the resale restriction documentation must be reviewed by an HHFDC-approved lender and the buyer's attorney before closing, and the units carry separate, generally lower income limits than standard Hula Mae.

How does the FHLB Des Moines Homeownership Set-Aside Program work in Hawaii?

FHLB Des Moines is the regional Federal Home Loan Bank that serves Hawaii, and it funds an annual Homeownership Set-Aside grant program available through participating FHLB member lenders. The program provides down payment and closing cost grant assistance (no repayment if owner-occupancy and other program requirements are met for the required period) to income-qualified first-time buyers. Funding is allocated annually and opens through member lenders - ask any FHLB Des Moines member lender operating in Hawaii whether current cycle funding is available, and whether your scenario qualifies to layer the grant on top of Hula Mae and county DPA.

How much assistance can I actually get in Honolulu or Maui?

In Honolulu, an eligible first-time buyer can layer HHFDC Hula Mae assistance (up to $40,000) with the City and County of Honolulu Down Payment Loan Program (up to $40,000) for up to roughly $80,000 in combined assistance - among the largest local stacks in the United States. In Maui County, the comparable stack is Hula Mae (up to $40,000) plus the Maui County Down Payment Assistance Program (up to $20,000) for up to roughly $60,000. Buyers may also be able to layer an FHLB Des Moines Set-Aside grant on top when funding is open. Both county programs are income restricted and run on funding cycles - confirm availability before counting on a specific dollar amount in your offer.

What credit score do I need for HHFDC programs?

HHFDC programs generally require a minimum credit score of 640 for FHA, VA, USDA, and conventional loans. FHA itself allows scores as low as 580 for 3.5% down, but HHFDC's overlay is higher. If your score is between 580 and 639, a standard FHA loan is still available through non-HHFDC lenders, but you would not be eligible for Hula Mae or for most layered Hawaii first-time buyer stacks simultaneously.

How long does it take to close using HHFDC plus a county DPA program?

Expect 50 to 75 days. HHFDC-only closings track close to standard timelines (40-50 days, slightly longer than mainland averages due to Hawaii title and escrow practices), but adding the City and County of Honolulu or Maui County DPA program adds a county agency review step that extends closing by 15 to 25 days. Affordable Resale units add additional time for deed restriction documentation review. FHLB Des Moines grant approvals also add scheduling time when included. Homebuyer education should be completed before you start house hunting - not after offer acceptance - to avoid pushing the timeline further.