First-Time Home Buyer Programs in Hawaii

Hawaii Housing Finance and Development Corporation (HHFDC) Programs:

Hula Mae M Program:

Eligibility: Available to first-time homebuyers (no homeownership in the past three years) purchasing in Hawaii.
Offerings: Provides a 30-year fixed-rate mortgage (conventional or FHA) at below-market rates through participating lenders; can be paired with down payment assistance.
Requirements:

• Income must not exceed county-specific limits (e.g., $173,100 in Honolulu County for 1-2 people as of 2025).
• Minimum credit score of 620 (or 640 for conventional loans).
• Debt-to-income ratio typically capped at 45%.
• Homebuyer education course required for all first-time buyers.

Down Payment Assistance Loan (DPAL):

Benefits: Offers up to 10% of the purchase price (max $40,000) as a 0% interest, deferred second loan (due on sale, refinance, or after 30 years); combinable with HHFDC first mortgages.
Eligibility: Must use an HHFDC first mortgage; income and purchase price limits apply (e.g., $819,750 for a single-family home in Honolulu County).

Local Programs:

Honolulu

City and County of Honolulu Down Payment Loan Program: Provides up to $40,000 as a 0% interest, deferred loan (due on sale or refinance) for first-time buyers; income must not exceed 120% AMI (e.g., $145,320 for a family of four).

Maui County

First-Time Home Buyers Program: Offers up to $30,000 as a 0% interest, deferred loan (forgivable after 10 years) for down payment and closing costs; targets first-time buyers with incomes up to 140% AMI in Maui County.

Hawaii County (Big Island)

Hawaii County Down Payment Assistance Program: Provides up to $20,000 as a 0% interest, deferred loan (due on sale or refinance) for first-time buyers; income must be at or below 100% AMI (e.g., $87,600 for a family of four).

Additional Information:

• Mortgage Credit Certificate (MCC): Offers a federal tax credit of up to 20% of annual mortgage interest (max $2,000) for first-time buyers when using an HHFDC mortgage; fee of $500 applies, subject to funding availability.
• USDA and VA Loans: Zero-down payment options for rural areas (USDA) or veterans/active military (VA).
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).