Honolulu Down Payment Loan Program
Financial Assistance for Homebuyers in Hawaii
Available Assistance
The program provides applicants up to $40,000 in assistance funds in the form of a zero-fee, zero-interest loan with a 20-year amortization term. Minimum monthly payments can be lowered, based on the applicant’s credit qualifications. The borrower must be an owner-occupant at all times. However, in the case of sale or other transfer of the property—unless the new owner is income-eligible—the applicant is required to pay the City of Honolulu a specified percentage of the loan balance, which is reduced for each full year of occupancy. Depending on the availability of funds, loans are granted on a first-come, first-served basis.
Eligibility Requirements
To be considered eligible for the Honolulu Down Payment Loan Program, applicants must meet certain requirements. Only first-time homebuyers are eligible, and their annual household income must fall under the program’s limits (shown below). Prior to applying, borrowers must complete a homeowner education course that is approved by the City of Honolulu.
Property Guidelines
Any property being purchased must serve as the applicant’s primary residence, and must be located on Oahu. Under the Honolulu Down Payment Loan Program, all properties must be a legally permitted structures meeting all local building codes, and they must pass a Housing Quality Standards inspection. They must meet all other Federal requirements as well, such as those governing lead-based paint for homes built before 1978 and environmental reviews.
Income Limits
Household income is defined as all income received by household members (18 years or older) who will be living in the home, even if they are not on the mortgage.
1 person household: $58,600
2 person household: $67,000
3 person household: $75,350
4 person household: $83,700
5 person household: $90,400
6 person household: $97,100
7 person household: $103,800
8 person household: $110,500
9 person household: $117,200
10 person household: $123,880
(Note: These figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.)
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in Hawaii
HHOC Down Payment Assistance Loan
This Down Payment Assistance Loan allows borrowers to purchase a home with a 5 percent down payment and avoid mortgage insurance requirements through a second mortgage/the down payment loan. The maximum loan amount available to applicants is $75,000.
Honolulu Down Payment Loan Program
The Honolulu Down Payment Loan Program provides applicants up to $40,000 in assistance funds in the form of a zero-fee, zero-interest loan with a 20-year amortization term. Minimum monthly payments can be lowered, based on the applicant’s credit qualifications.
Hula Mae Mortgage Loan Program
The Hawaii Housing Finance and Development Corporation (HHFDC) offers homebuyers the Hula Mae Mortgage Loan Program. In addition to an affordable home loan, the program provides assistance toward making the down payment associated with a mortgage.
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