One of the most common questions I get from first-time buyers is whether there are any programs to help. There are. The main Hawaii first-time home buyer programs are the State’s Hale Kamaʻāina Mortgage Program, which offers a 30-year fixed rate targeted below market with optional down payment help, and the City and County of Honolulu’s Down Payment Loan Program for lower income buyers on Oahu.
They will not make Oahu cheap, but the right one can lower your rate or help with your down payment. Every number below comes from the official page with its date, and I link those pages so you can check what is current.
Quick answer
- Hale Kamaʻāina Mortgage Program (State of Hawaii, HHFDC): 30-year fixed rate targeted at least 0.5% below market, for first-time buyers under income and price limits. Replaced Hula Mae. You apply through a participating lender.
- Honolulu Down Payment Loan Program (City): up to a $40,000, 0% interest second loan for first-time buyers at or under 80% of Oahu area median income, while funds last.
- VA and FHA loans: not first-time programs, but VA can mean no down payment for eligible veterans and service members, and FHA down payments can be as low as 3.5%.
- First step: talk to a lender who works with these programs before you shop.
In this guide:
- Hawaii first-time home buyer programs at a glance
- The Hale Kamaʻāina Mortgage Program (formerly Hula Mae)
- How to apply for Hale Kamaʻāina
- City and County of Honolulu Down Payment Loan Program
- VA and FHA loans for first-time buyers
- Mistakes that cost first-time buyers a program
- How to find out what you qualify for
- FAQ
Hawaii First-Time Home Buyer Programs at a Glance
| Hale Kamaʻāina (State) | Down Payment Loan (City) | VA / FHA (Federal) | |
|---|---|---|---|
| What it does | Lower fixed rate on a 30-year first mortgage, optional down payment help | 0% interest second loan up to $40,000 toward your down payment | Low or no down payment loan types |
| First-time buyer required? | Yes, with some exceptions | Yes | No |
| Income limit | Yes, by household size and area | Yes, up to 80% of Oahu area median income | No program limit; your lender qualifies you on credit and income |
The Hale Kamaʻāina Mortgage Program (Formerly Hula Mae)
This is the State of Hawaii’s first-time buyer mortgage program, run by HHFDC. It replaced the old Hula Mae Single Family Mortgage Program and launched in December 2025, according to HHFDC’s announcement of its first closings. It is funded with tax-exempt bonds, which is how the State can offer a rate below market.
The program offers a 30-year fixed rate mortgage. HHFDC says the rate is targeted to be at least 0.5% below market, and the actual rate depends on the bond rate at the time of sale. When I checked on September 29, 2026, HHFDC’s program page listed 5.62% for government loans and 5.87% for conventional loans, and its agent page dates those rates July 22, 2026. Rates change, so check that page for today’s numbers.
Who qualifies
Per HHFDC’s eligibility page (as of September 4, 2026), you need to meet all of these:
- First-time buyer: you, including your spouse, have not owned or held an interest in a principal residence in the past 3 years. Exceptions may apply for veterans and for purchases in targeted areas.
- Hawaii resident, at least 18, and a U.S. citizen or resident alien.
- Household income under the program limit for your household size and area.
- Purchase price under the program limit.
- Homebuyer education: a homeownership counseling course through a HUD-approved housing counseling agency.
- Your main home: you move in within 60 days of closing and live there for the life of the loan.
Income and price limits on Oahu
Oahu is Honolulu County. These are HHFDC’s posted limits as of June 13, 2026. Targeted areas are federally designated census tracts where the limits are higher; you can look them up on HHFDC’s targeted area census tracts page.
| Honolulu County | Non-targeted area | Targeted area |
|---|---|---|
| Income limit, 1 to 2 people | $154,805 | $184,800 |
| Income limit, 3 or more people | $178,025 | $215,600 |
| Purchase price limit | $866,346 | $1,058,867 |
HHFDC revises these from time to time under IRS guidelines, so confirm the current numbers before you shop.
Down payment assistance
The program offers optional down payment help as a second mortgage. HHFDC’s page for real estate agents describes it as a second loan equal to 4% of the first mortgage at 1% simple interest, with no monthly payments, due when the first loan is paid off, or when you sell, refinance or transfer title. That same page says you must put in at least 5% of the price yourself to use it, and that the 5% does not apply if you skip the second loan.
Here is the catch: HHFDC’s FAQ, updated September 4, 2026, says Act 214 of the 2026 Legislature changed the law, and the second mortgage terms will be updated once the administrative rules are amended. So ask your lender what the down payment help looks like right now. To get it, HHFDC also requires that you not own any other residential property in Hawaii and that you have never received a down payment loan from HHFDC before.
Loan types and credit
HHFDC’s agent page lists FHA, VA, USDA-RD, Fannie Mae and Freddie Mac loans as eligible, with a 660 minimum credit score and a 45% maximum debt to income ratio. Your lender has the final word on your file.
What you can buy
- Single-family homes, townhomes, PUDs and condominiums (HHFDC’s agent page says approved condos), new or existing.
- One unit only. Homes with an accessory dwelling unit (ADU) are not eligible.
- No investment property, second home or rental.
- No more than 15% of the property used for a business.
- Leasehold is allowed only if at least 35 years are left on the lease and the lease rent is fixed for at least 10 years from the loan date.
The recapture tax
Because the loan comes from tax-exempt bonds, a federal recapture tax can apply if you sell within 9 years. HHFDC says all three of these have to happen: you sell within the first 9 years, your household income has gone up above the program limits by at least 5% a year, and you have a gain on the sale. You get recapture notices at pre-closing and closing. I am not a tax advisor, so if you think you might sell early, run it past a CPA before you commit.
HHFDC may waive the live-in rule for up to 3 years for a hardship such as a job or military transfer or a serious illness, case by case. Breaking the rule without a waiver may make the whole loan due.
How to Apply for Hale Kamaʻāina
You do not apply to the State directly. HHFDC’s how to apply page lays out five steps:
- Talk to a participating lender. They check your eligibility and pre-qualify you. The current list is on HHFDC’s participating lenders page.
- Take the homebuyer education course through a HUD-certified housing counseling agency.
- Find a home with a licensed agent that fits the program’s price and property rules, and write the offer.
- Your lender reserves the program funds once your offer is accepted.
- Close the loan with your lender.
My advice: do the class early so it never holds up a closing.
Want a step by step plan? Get your Buyer Game Plan, or call or text me at (808) 459-6450. I am Devin Hammack with Team Taparra at eXp Realty.
City and County of Honolulu Down Payment Loan Program
The City’s Down Payment Loan Program is funded with HOME Investment Partnership Act money from HUD and run by the Department of Community Services. It is for first-time buyers on Oahu with household income up to 80% of the area median income.
- Amount: up to $40,000 as a second mortgage at 0% interest with no loan fees, first come, first served, while funds last.
- Payment: the brochure says the monthly payment is amortized over 20 years, which works out to $166.67 a month.
- Your share: you must put in at least 5% of the sales price yourself. The City loan can only go toward additional down payment, not closing costs or anything else.
- Live there: you must live in the home for the life of the loan. If you sell or transfer it, the loan is paid off, based on your annual occupancy credit.
- Occupancy credit: the City says you may be eligible for an owner occupancy credit of up to $20,000 after the 10-year affordability period in the HOME Program recapture agreement.
- Education: a City approved homeowner education course before loan approval.
- The property: must be legally permitted, pass a City inspection, and meet federal rules like lead-based paint requirements for homes built before 1978 and an environmental review.
The City’s brochure (revised July 2026) lists these income limits, which it says are subject to periodic revision:
| Household size | Maximum annual income |
|---|---|
| 1 | $86,250 |
| 2 | $98,600 |
| 3 | $110,900 |
| 4 | $123,200 |
| 5 | $133,100 |
| 6 | $142,950 |
To apply, tell your first mortgage lender you want the City loan. Your lender contacts the City to check that funds are available and gets the submission checklist, then sends your file to the City for an eligibility decision. You can also call the City at (808) 768-7076.
VA and FHA Loans for First-Time Buyers
These are not first-time buyer programs, but a lot of my first-time buyers use one of them. According to the VA, nearly 90% of VA-backed loans are made with no down payment. You need a Certificate of Eligibility based on your service history and duty status, plus the credit and income for the loan you want. If you are military, start with my VA loan guide for Oahu, and if you have your eye on a condo, read about VA approved condos on Oahu.
HUD says an FHA down payment can be as low as 3.5% of the purchase price. Hale Kamaʻāina lists both FHA and VA as eligible loan types, so it is not always one or the other.
Can you use the State and City programs together? Each has its own rules, so ask your lender up front.
Mistakes That Cost First-Time Buyers a Program
- Shopping first, asking later. Know the price and income limits before you fall in love with a listing.
- Falling for a home with an ADU. Hale Kamaʻāina does not allow homes with an accessory dwelling unit, and it only covers one-unit homes.
- Assuming any leasehold works. The lease needs 35 years left and lease rent fixed for 10. If leasehold is new to you, read my leasehold vs fee simple guide.
- Skipping the condo homework. Condos are eligible, but the building still has to work for your loan type. My first condo checklist covers what to check.
- Planning to rent it out soon. Both programs expect you to live in the home. The State program does not allow rentals, and the City loan is paid off if you sell or transfer.
- Waiting on the class. Both programs require one, so do it early.
How to Find Out What You Qualify For
The fastest way is to talk to a lender who works with these programs. They can look at your full picture and tell you which options fit. A good lender will also tell you honestly when a program is not worth it for you.
Once you know your numbers, the rest is the normal buying process. My first-time home buyer guide for Oahu walks through every step from pre-approval to closing.
FAQ
What replaced Hula Mae in Hawaii?
The Hale Kamaʻāina Mortgage Program, run by HHFDC. HHFDC says it replaced the Hula Mae Single Family Mortgage Program and launched in December 2025.
Do I have to be a first-time buyer?
For Hale Kamaʻāina, yes: you and your spouse cannot have owned or held an interest in a principal residence in the past 3 years, with possible exceptions for veterans and targeted areas. The City loan is also for first-time buyers. VA and FHA are not limited to first-time buyers.
Can I buy a condo with Hale Kamaʻāina?
Yes. Condominiums, townhomes, PUDs and single-family homes are eligible. Homes with an accessory dwelling unit and multi-unit properties are not.
How much is the Honolulu Down Payment Loan?
Up to $40,000 at 0% interest, for first-time buyers with household income up to 80% of Oahu area median income. You must put in at least 5% of the price yourself, and funds are first come, first served.
Can I refinance into Hale Kamaʻāina later?
No. HHFDC says the program cannot be used to refinance an existing mortgage, convert an agreement of sale, or buy the fee simple title to a leasehold property.
The Bottom Line
There is real help for first-time buyers on Oahu. It just takes knowing where to look and getting the order right: talk to a lender, check the programs, take the class, then shop.
Want a step by step plan? Get your Buyer Game Plan, or call or text me at (808) 459-6450. I am Devin Hammack with Team Taparra at eXp Realty.
Sources
- HHFDC: Hale Kamaʻāina Mortgage Program
- HHFDC: Hale Kamaʻāina Mortgage Program for Homebuyers, Frequently Asked Questions
- HHFDC: Hale Kamaʻāina Eligibility, Income and Purchase Price Requirements
- HHFDC: Hale Kamaʻāina How to Apply
- HHFDC: Hale Kamaʻāina Mortgage Program for Real Estate Agents
- HHFDC: First Three Homebuyers Close Under Hale Kamaʻāina
- City and County of Honolulu: Loan Programs for Homeowners
- City and County of Honolulu: Down Payment Loan Program Brochure
- HUD: Loans
- VA: Home Loans
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