A home inspection on Oahu is where you find out what you are really buying: the roof, the plumbing, the wiring, the rust the listing photos did not show, and whether the house still runs on a cesspool. It happens during your inspection period after your offer is accepted, and what you find there decides whether you ask for repairs, ask for a credit, or walk away. Selling instead? Read my guide to a pre-listing home inspection on Oahu.

Here is what to expect, what to check on island homes, and the official pages to read before your deadline.

In this guide:

• What a home inspection on Oahu covers
• The termite inspection is separate
• Salt air, roofs, plumbing and electrical
• Cesspools and the 2050 deadline
• Unpermitted work and Honolulu DPP permits
• Solar panels: owned or leased
• Condo vs house inspections
• Your inspection period and repair request
• Mistakes to avoid
• FAQ
• Bottom line

What a Home Inspection on Oahu Covers (and What It Does Not)

HUD’s own buyer notice puts it plainly: a home inspection only happens if you arrange one, and the appraisal your lender orders is not a home inspection. The appraisal estimates value for the lender. The inspection is for you. Read HUD’s notice, For Your Protection: Get a Home Inspection.

A general inspector looks at what can be seen and reached safely, including:

• The roof surface, gutters, flashing and any signs of past leaks inside
• The structure: foundation, posts and piers on raised homes, framing you can see, and the slab
• Plumbing: supply lines, drains, water heater, fixtures and visible leaks
• Electrical: the main panel, breakers, outlets, grounding and any amateur wiring
• Windows, doors, railings and stairs
• Air conditioning and appliances that stay with the home

It usually does not cover what is inside walls, underground lines, termites, mold lab testing, or anything the inspector cannot reach. HUD suggests asking an inspector for their Standards of Practice or a sample report before you hire them. A sample report shows how they write up problems, which matters when you write a repair request.

Plan to be there for the last hour. The inspector can show you which findings are urgent and which are normal wear.

The Termite Inspection Is Separate

On Oahu the termite inspection is its own report, done by a licensed pest control company, not by your home inspector. The standard Hawaii purchase contract most agents here use has its own section for it. That section covers who picks the termite company, who pays for the inspection, and what happens if the report shows live activity or damage.

In my deals the buyer side usually chooses the company and the contract lays out the rest, but every contract is negotiated, so read your own. If the report shows active termites, the contract language decides who orders and pays for treatment and by when. If you are not sure what yours says, ask your agent or a real estate attorney before your deadline. This article is not legal advice.

Some loans also care about termites. A VA loan, for example, can require a termite report before closing, and your lender will tell you exactly what your loan needs. I cover that in my VA loan guide for buying on Oahu.

Salt Air, Roofs, Plumbing and Electrical in Older Island Homes

Many homes I show were built decades ago, and island weather is hard on materials. Watch these items.

Salt air and rust

Salt air works on metal, especially near the ocean. Look at railings, window frames, visible hurricane straps, exterior electrical boxes, AC condensers and the water heater. Rust through a part or on structural connectors is a repair item.

Roofs

Ask the seller for the roof’s age and any permits or warranty paperwork. Have the inspector look for soft spots, lifted shingles, rusted metal roofing and ceiling stains. If the inspector flags the roof, a roofer’s written estimate during your inspection period gives you something real to negotiate with.

Plumbing

Older homes can still have original galvanized supply lines or cast iron drains. Look under every sink and run the water a while. A sewer or drain camera scope from a plumber is worth considering on an older house, because the general inspector cannot see underground.

Electrical

Older panels are a common write up: outdated or double tapped breakers, missing covers, or additions wired without a permit. If the inspector recommends an electrician, get that electrician out before your deadline, not after.

Cesspools on Oahu and Hawaii’s 2050 Deadline

This one surprises mainland buyers most. In 2017 the Legislature passed Act 125. It is now Hawaii Revised Statutes section 342D-72, which says that before January 1, 2050, every cesspool in the state must be upgraded or converted to a wastewater system the Director of Health approves, or connected to a sewer system. The director can grant exemptions to owners who apply and show a legitimate reason it is not feasible, such as a small lot, steep land, poor soils or access problems.

The Department of Health cesspools page estimates about 88,000 cesspools statewide, with over 11,000 on Oahu. The Department also sorts cesspools into priority categories by risk to water, so ask which one applies.

What I have buyers ask on any home that is not clearly on city sewer:

• Is the home on a cesspool, a septic system, an aerobic unit, or sewer? Get it in writing on the disclosure.
• Where is the system on the lot, and when was it last pumped or serviced?
• Has the seller looked into conversion or applied for an exemption?
• Can a wastewater professional inspect and locate it during your inspection period?

After closing, conversion is your problem, so plan and negotiate for it now. Get real estimates from licensed contractors rather than guessing.

Not sure how a cesspool or an older house changes your plan? Get your Buyer Game Plan, or call or text me at (808) 459-6450.

Unpermitted Work and How to Check Permits With Honolulu DPP

Enclosed carports, garage conversions and added bathrooms are common on Oahu, and not all were permitted. Unpermitted work can mean safety problems, insurance trouble, and a bill to legalize it later.

The City and County of Honolulu Department of Planning and Permitting has a Permitting page with its search tools. Open building permits and records from August 2025 forward are in the HNL Build portal. Closed building permits through July 31, 2025 are in the older DPP Online Services search, which is linked from the same page. For full permit files, DPP’s Resources page says to fill out a Request to View Records or contact its Data Access Imaging Branch at (808) 768-8277.

How I use it: compare the permit history to what is actually on the ground. If the listing and the permits tell different stories, ask the seller in writing and have your inspector look closely at that area. If work was done recently, ask for the contractor’s name and check the license through the state’s Professional and Vocational Licensing Division.

Solar Panels: Owned, Leased, and the Utility Agreement

Rooftop solar is common on Oahu, and the questions are mostly paperwork. Hawaiian Electric says that when you buy a home with rooftop solar, you assume the rights and responsibilities of the previous owner’s existing agreement with the utility. If a solar lease changed hands, it may ask for documentation.

• Is the system owned outright, financed, or leased? A lease or loan has its own transfer steps and terms to read.
• Ask for the utility agreement and installer warranty.
• Check that the system shows up in the DPP permit history.
• Ask the inspector to check for leaks around roof penetrations, and find out the age of the roof under the panels.

Condo vs House Inspections on Oahu

With a house, the inspection covers the whole property. With a condo, your inspector looks at the unit: fixtures, wiring, windows, the lanai and appliances. The roof, structure and common pipes usually belong to the association.

That makes the association documents part of your inspection for a condo. Under HRS section 514B-154.5, records such as the declaration, bylaws, house rules, financial statements and board minutes must be made available to owners and their authorized agents. Read the minutes for words like spalling, plumbing and special assessment. I go through this in detail in my checklist for buying your first condo in Honolulu, and the state’s condominium resources page is a good place to start.

Also check whether the land is fee simple or leasehold. If you see leasehold, read my explainer on leasehold vs fee simple on Oahu before you spend money on inspections.

Your Inspection Period and the Repair Request

Your purchase contract sets the inspection deadline, usually counted in days from acceptance, and missing it can mean accepting the property as is. Schedule the inspector, termite company and any specialists the day your offer is accepted.

In most resales the seller’s disclosure statement runs on its own clock. Under HRS section 508D-5, the seller provides the disclosure within ten calendar days of acceptance, and you then have fifteen calendar days after you receive it to review it and decide whether to rescind in writing. The parties can agree in writing to shorten or extend those times, so confirm what your contract says.

If the home was built before 1978, federal rules from the EPA on lead disclosure give buyers a 10 day opportunity to test for lead based paint, which the buyer and seller can change or waive in writing.

Once your reports are in, you have four basic choices:

• Accept the property as it is.
• Ask for specific repairs by licensed contractors, with receipts.
• Ask for a credit or lower price instead.
• Cancel within the terms of your contract.

Focus the request on safety, systems and big ticket items, with report pages and estimates attached. A credit can be easier than repairs, and it can reduce your cash at closing; here is how closing costs for buyers on Oahu and credits work. Confirm wording and deadlines with your agent or a real estate attorney. If you are new to the whole process, my first time home buyer guide for Oahu shows where inspections fit from offer to keys.

Mistakes to Avoid

• Skipping the inspection because the home is newer.
• Leaving no time for specialists.
• Treating the termite report and the home inspection as the same thing.
• Not asking about the cesspool until after closing.
• Asking for dozens of cosmetic fixes and burying the items that matter.
• Missing the deadline for a written response.

Home Inspection on Oahu FAQ

Do I need a home inspection on Oahu if the lender orders an appraisal?

Yes. HUD’s buyer notice says an appraisal is not a home inspection. The appraisal estimates value for the lender, and the inspection tells you about the home’s condition.

Who pays for the termite inspection in Hawaii?

It depends on your purchase contract. The standard Hawaii contract has a separate termite section that sets who picks the company, who pays and who treats live activity.

Can I buy a home on Oahu that has a cesspool?

Yes, but Hawaii law requires every cesspool to be upgraded, converted or connected to sewer before January 1, 2050, unless the Department of Health grants an exemption. Plan and price that work during your inspection period.

How do I check permits on an Oahu home?

Use the Honolulu DPP Permitting page. Newer records are in the HNL Build portal, and closed building permits through July 31, 2025 are in the older DPP Online search.

Is a condo inspection different from a house inspection?

Yes. A condo inspector looks at your unit, while the roof, structure and common systems are usually the association’s, so read the association documents too.

What happens if the inspection finds problems?

You can accept the home as is, ask for repairs, ask for a credit or price change, or cancel within the terms of your contract. Send your response in writing before your inspection deadline.

The Bottom Line on a Home Inspection on Oahu

Hire your own inspector, get the separate termite report, and spend extra attention on rust, the roof, old plumbing and the panel. Ask about the cesspool and the 2050 deadline, check the permits with DPP, and sort out the solar paperwork. Then send a focused written request before your deadline.

Sources

• HUD: For Your Protection: Get a Home Inspection (HUD 92564 CN)
• Hawaii Revised Statutes 342D-72: Cesspools; mandatory upgrade, conversion, or connection
• Hawaii Department of Health, Wastewater Branch: Cesspools in Hawaii
• Hawaii Revised Statutes 508D-5: Delivery of disclosure statement to buyer
• Hawaii Revised Statutes 514B-154.5: Association documents to be provided
• City and County of Honolulu DPP: Permitting
• City and County of Honolulu DPP: Resources
• Hawaiian Electric: Change of Ownership for rooftop solar customers
• US EPA: Real Estate Disclosures about Potential Lead Hazards
• Hawaii DCCA Real Estate Branch: Resources for Condominium Owners and Prospective Buyers
• Hawaii DCCA: Professional and Vocational Licensing Division

Want help planning inspections on a home you like? Get your Buyer Game Plan, or call or text me at (808) 459-6450. I am Devin Hammack with Team Taparra at eXp Realty.

A CPR home in Hawaii is a home owned under a Condominium Property Regime: you own your unit, and you share ownership of the land and other common elements with the other owners in the project. On Oahu, the classic example is two houses on one lot, where each house is its own condo unit even though neither one looks anything like a condo building.

Here is how a CPR works, what to read, how costs and insurance are shared, what it means for your loan, and what I check before an offer.

In this guide:

• What is a CPR home in Hawaii?
• What you own: unit, common elements and limited common elements
• CPR vs a subdivided lot
• CPR documents: declaration, bylaws, map and house rules
• Shared costs and who pays for what
• Insurance on a CPR
• Financing a CPR home
• Buying a new CPR from a developer
• What to check before you buy
• Mistakes to avoid
• FAQ
• Bottom line

What Is a CPR Home in Hawaii?

The Hawaii Real Estate Branch puts it simply in its brochure So You Want To Go Condo?: a condominium is a form of ownership, not a structure or a building. CPR is that form of ownership plus the governing process that comes with it, under HRS Chapter 514B.

Under HRS 514B-3, a condominium is real estate where portions are designated for separate ownership and the rest is designated for common ownership solely by the owners of those portions. The same section says real estate is not a condominium unless the undivided interests in the common elements are vested in the unit owners. So the land under a CPR home in Hawaii is usually owned together by the unit owners.

The brochure notes condos can be townhouses, high rise units, boat slips, even detached houses, and a Hawaii project must contain two or more units. On Oahu, “a CPR” usually means a detached house that shares a lot with another home.

A CPR is created when the owners record the declaration, the bylaws of the association, the condominium map and the master deed or lease at the Bureau of Conveyances or the Land Court (HRS 514B-31).

What You Own: Unit, Common Elements and Limited Common Elements

• Your unit. The part designated for separate ownership, with an exit to a public road or to a common element leading to one (HRS 514B-3). The declaration (or the default rules in HRS 514B-35) says where it ends.
• Common elements. Everything in the project that is not a unit. Your share is your “common interest,” a percentage set in the declaration.
• Limited common elements. Common elements reserved for the exclusive use of fewer than all the units. The state brochure says these often include yard areas and parking spaces, and that they give exclusive use, not ownership. HRS 514B-35 also treats lanais, patios and exterior doors serving one unit as that unit’s limited common elements unless the declaration says otherwise.

So “this is your yard” usually means “this land is a limited common element assigned to your unit.” The difference shows up when you build, sell or refinance.

CPR vs a Subdivided Lot

A CPR is not a subdivision. The state brochure says CPRing a property does not decide what or how much can be built, and does not change county zoning, density or use rules. HRS 514B-5 requires every CPR to conform to the county zoning and permitting rules for the property.

The Real Estate Branch Condo Developer FAQs put it this way: subdivision creates separate parcels free and clear of other property, while condo owners hold an interest in the whole undivided property. The same page warns that building rights belong to the entire undivided property, which may mean some units cannot build homes. So never assume you can add on.

Still deciding? My post on condo vs house on Oahu covers the bigger trade offs.

CPR Documents: Declaration, Bylaws, Condo Map and House Rules

The Hawaii Real Estate Commission’s Realities of Condo Ownership handout says it is imperative to read your condo documents, and that buying makes you a member of the association bound by them. Here is what each one does on a CPR home in Hawaii.

The declaration

The declaration creates the condominium. Under HRS 514B-32 it describes the land, the units, each unit’s common interest and permitted uses, the common elements, and which limited common elements belong to which unit. Unless the law or the declaration says otherwise, an amendment takes the vote or written consent of owners holding at least 67 percent of the common interest. On a two unit CPR split 50/50 that uses this default, no change happens unless both owners agree.

The bylaws

The bylaws set how the association is run: the board, officers, elections and how binding decisions get made (HRS 514B-108). On a two house CPR the board may be you and your neighbor.

The condominium map

The map shows the units and often the limited common element areas. I walk the property with it so buyers see where their area ends, which is not always where the fence is.

House rules

Per the Commission, house rules must be based on the bylaws or declaration and can include fines; associations may levy reasonable fines for violations (HRS 514B-104). Many small CPRs have none.

The brochure lists a “master deed or lease” among the creating documents, so some CPRs sit on leased land. If the listing says leasehold, read my guide to leasehold vs fee simple on Oahu before anything else.

Shared Costs and Who Pays for What

Under HRS 514B-41, common expenses are charged to owners in proportion to their common interest, unless the declaration or bylaws say otherwise. Limited common element costs, like repair and replacement, generally go to the owner of the unit they belong to.

In a high rise that becomes a monthly maintenance fee. In a two house CPR there may be no monthly fee, and owners split shared bills as they come up. The Commission’s handout notes thin reserves can lead to special assessments. In my experience small CPRs run far more informally than big buildings, so ask what is shared (driveway, water line, sewer, fences), how bills get split, and whether money is set aside. My post on Oahu HOA fees explains how budgets and reserves work in larger projects.

Also verify: unpaid assessments become a lien on the unit with priority over other liens except property taxes and mortgages recorded before the association records its lien (HRS 514B-146). Ask for a statement of any unpaid assessments before closing.

Insurance on a CPR Home in Hawaii

Under HRS 514B-143, unless the declaration or bylaws provide otherwise, the association must insure the common elements at full replacement cost and carry liability coverage, plus flood insurance if the property is in a FEMA special flood hazard area.

With detached units, the board may let each owner insure their own unit, as long as coverage meets the law, the association is named as an additional insured, and proof goes to the association every year. In my experience that is common on two house CPRs, but the documents control. Before you remove contingencies, confirm who insures what and get your own quote.

Financing a CPR Home

To a lender, a CPR unit is a condo unit even when it is a detached house, so your lender may review the project, not just the house. For example, the Fannie Mae Selling Guide section on the waiver of project review waives project review for two to four unit condo projects, while insurance and some other requirements still apply.

Each loan program has its own condo rules, so tell your lender on day one it is a CPR. If you are using VA, ask your lender early whether the project needs VA approval; my post on VA approved condos on Oahu covers what to do when a project is not on the list. Closing costs work like any purchase; see closing costs for buyers on Oahu.

Thinking about a CPR listing right now? Get your Buyer Game Plan, or call or text me at (808) 459-6450. I am Devin Hammack with Team Taparra at eXp Realty.

Buying a New CPR From a Developer

Buying from the person who created the CPR adds protection. Per the state brochure, a project must be registered with the Commission before units are offered, and the developer’s public report is a disclosure statement for buyers. Its effective date is not an approval of the project.

Under HRS 514B-86, a contract with a developer is not binding until you receive the public report (with the declaration, bylaws, house rules if any and a condo map) plus notice of your 30 day cancellation right, and that right is waived or runs out. You can cancel until midnight of the 30th day after you sign and receive those items, unless you waive it or close first. Buying from a later owner, those developer rules generally do not apply, so your own review matters more.

What to Check Before You Buy a CPR on Oahu

What I work through with buyers (it does not replace your attorney):

1. Get the full recorded documents. Declaration, bylaws, condo map, any amendments and any house rules. Under HRS 514B-154.5 associations must make them available to owners, so the seller can get them.
2. Find your unit and limited common element on the map, then walk it.
3. Read the permitted uses for each unit.
4. Ask the county what can be built. The Real Estate Branch suggests giving the county the tax map key and asking how many dwellings are allowed and under what conditions.
5. Check for ADU or ohana covenants. Per the Real Estate Branch FAQ, Honolulu does not allow ADUs to be sold separately; owners record a covenant not to CPR the lot to split an ADU from the main home, and ohana permits carry a similar covenant.
6. Confirm permits for both homes. The declaration must state the project complies with zoning and building codes (HRS 514B-32).
7. Map the shared systems and ask whether cost sharing is in writing.
8. Sort out insurance before contingencies end.
9. Ask about unpaid assessments and any disputes between owners.
10. Loop in your lender and an attorney early.

If this is your first purchase, my first-time home buyer guide for Oahu covers the whole process.

Mistakes to Avoid With a CPR

• Treating the yard like a lot you own. It is usually a limited common element.
• Assuming you can expand. The documents and the county decide, and the other owner may have to sign off.
• Skipping the documents because “it’s just two houses.” Small CPRs often have the fewest written answers.

FAQ About CPR Homes in Hawaii

What does CPR mean in Hawaii real estate?

Condominium Property Regime, a form of ownership under HRS Chapter 514B. You own your unit and share an undivided interest in the common elements, usually including the land, with the other owners.

Is a CPR the same as owning my own lot?

No. Subdivision creates separate parcels; a condominium gives owners an interest in the whole undivided property, with exclusive use areas called limited common elements.

Do I pay HOA fees on a CPR home?

Common expenses are shared by common interest unless the documents say otherwise. Some small CPRs have no monthly fee and split bills as they come up.

Who insures a CPR house?

By default the association insures the common elements. For detached units, the board may let owners insure their own units if coverage meets the law and the association is named as an additional insured.

Can I add on to my CPR home?

Only if the documents and county rules allow it. Building rights belong to the whole property, and amending the declaration generally takes 67 percent of the common interest.

Can I get a regular mortgage on a CPR home?

Often yes, but lenders treat it as a condo unit and may review the project. Tell your lender it is a CPR at the start.

The Bottom Line on a CPR Home in Hawaii

A CPR home in Hawaii can be a solid way to own a house on Oahu, but you are buying into shared ownership, not a lot of your own. Read the documents, know your limited common element, settle insurance and shared costs, ask the county what can be built, and bring in your lender early. This is general information from my experience, not legal advice; have your attorney review your documents.

Sources

• Hawaii Revised Statutes 514B-3: Definitions
• HRS 514B-5: Conformance with county land use laws
• HRS 514B-31: Creation
• HRS 514B-32: Contents of declaration
• HRS 514B-35: Unit boundaries
• HRS 514B-41: Common profits and expenses
• HRS 514B-86: Requirements for binding sales contracts; purchaser’s right to cancel
• HRS 514B-104: Association powers
• HRS 514B-108: Bylaws
• HRS 514B-143: Insurance
• HRS 514B-146: Lien for assessments
• HRS 514B-154.5: Association documents to be provided
• Hawaii Real Estate Branch: So You Want To Go Condo? (revised June 2021)
• Hawaii Real Estate Commission: Realities of Condo Ownership
• Hawaii Real Estate Branch: Condo Developer FAQs
• Fannie Mae Selling Guide B4-2.1-02: Waiver of Project Review

Looking at a CPR, or any home on Oahu? Get your Buyer Game Plan, or call or text me at (808) 459-6450. I am Devin Hammack with Team Taparra at eXp Realty.

If you are weighing Kahala vs Diamond Head vs Portlock, the real differences are not the views. They are the rules that come with the land: how close you can build to the water, whether the parcel was ever leased land, whether there is an association, and which city plan area the lot sits in.

I’m Devin Hammack with Island Homes Oahu, and this is the comparison I walk my luxury buyers through before we tour a single home in East Honolulu. Every rule below has a source listed at the end so you can check it yourself. If you want the wider island view first, start with my guide to luxury homes on Oahu.

In this guide:

• Kahala vs Diamond Head vs Portlock at a glance
• Kahala
• Diamond Head
• Portlock and Hawaii Kai
• Oceanfront vs ocean view
• Shoreline setbacks
• Leasehold vs fee simple pockets
• HOA or no HOA
• Flood, tsunami and sea level rise
• Commute and getting around
• Property taxes at the high end
• How I help you compare
• FAQ
• Bottom line

Kahala vs Diamond Head vs Portlock at a Glance

Kahala: South Shore Oceanfront Inside the Urban Center

Kahala runs along the south shore at the eastern edge of the city’s Primary Urban Center plan area, which the city describes as stretching from Kahala to Pearl City. That matters because the plan area decides which shoreline setback formula applies to an oceanfront lot.

Kahala Avenue is the oceanfront street, with Waialae Beach Park along it. Off the avenue, most of what you will see is single family homes, so the conversation is about the lot and the house.

What I look at first on a Kahala listing:

• Is it on the water, across the street from the water, or inland? Those are three different purchases.
• If it is oceanfront, where is the certified shoreline and when was it certified?
• Is the land fee simple? Older Oahu neighborhoods can still surprise you on tenure, so I read the title report on every one.
• Any seawall or revetment on the parcel, and does the seller disclose its permit status?

For more on the neighborhood itself, here is my page on buying a home in Kahala.

Diamond Head: Crater Slopes and a Special Design District

Diamond Head homes sit on the slopes around Le’ahi and along Diamond Head Road, which runs on the ocean side of the crater. The state’s Diamond Head State Monument covers more than 475 acres of the crater interior and outer slopes, so a lot of the land around you is never going to be built on.

The big rule difference is the Diamond Head Special District. Under the city’s Land Use Ordinance, the district exists to protect views of Diamond Head as the dominant landmark and to keep the park-like setting around it, including Kapiolani Park. In practice that has meant height controls, setback rules, landscaping requirements, and materials and colors that are non-reflective and subdued. Larger projects in a special district can need a special district permit from the Department of Planning and Permitting.

If you plan to expand or rebuild, the special district can shape what you are allowed to do. I get that answer before we write an offer.

Slope lots bring their own questions about access, retaining walls and drainage for an inspector or engineer.

More on the area here: Diamond Head homes and neighborhoods.

Portlock and Hawaii Kai: Maunalua Bay, Koko Head and the Marina

Portlock is the oceanfront pocket of Hawaii Kai on Maunalua Bay, below Koko Head, with Hanauma Bay Nature Preserve just around the point. Hawaii residents with a valid Hawaii ID get into Hanauma Bay free without a reservation.

Hawaii Kai has a history that still shows up in today’s paperwork. According to the U.S. Supreme Court’s decision in Kaiser Aetna v. United States, Kuapa Pond was a 523 acre fishpond held by Bishop Estate, leased to Kaiser Aetna in 1961 and dredged and filled into the Hawaii Kai Marina. The Court held in 1979 that the marina is private and that the government could not force public access without paying for it.

What that means for buyers. First, marina waterfront lots have paid fees for its upkeep for decades, so a marina home comes with an association, rules and dues you need in writing. Second, because the marina area started as leased estate land, I check tenure on every Hawaii Kai purchase.

Portlock oceanfront is different again. It sits in the East Honolulu plan area, which runs from Makapuu Point to Waialae Nui Gulch, so an oceanfront lot there falls under the erosion based setback formula covered below, not the flat urban one.

More on the area here: Hawaii Kai and Portlock real estate.

Oceanfront vs Ocean View: What You Are Really Buying

In all three areas you will see “ocean view” on listings that are very different from each other. Here is how I sort them:

• Oceanfront. The lot touches the shoreline. You get the most direct water access and the most rules: shoreline setbacks, a certified shoreline before you build near the water, and disclosure of any erosion control structures.
• Ocean view, not on the water. Across the street, up the slope or a few lots back. Usually no shoreline setback, but views can depend on what neighbors build, so I look at zoning and, in Diamond Head, the special district.
• Marina waterfront. Unique to Hawaii Kai in this comparison. You are on private marina water, not the ocean shoreline, with association rules and fees attached.

One more point: in Hawaii the legal shoreline is defined by state law as the upper reach of the wash of the waves at high tide in the season of highest waves, usually shown by the edge of vegetation or the debris line. It is not your deed line, and it can move.

Shoreline Setbacks: Kahala vs Diamond Head vs Portlock

State law sets a minimum shoreline setback of 40 feet. Honolulu’s rules go further: Ordinance 23-3 rewrote the city’s shoreline setback rules, and since July 1, 2024 the setback line is measured from the certified shoreline like this:

• Primary Urban Center plan area (which reaches east to Kahala): 60 feet.
• Every other plan area, including East Honolulu: 60 feet plus 70 times the annual coastal erosion rate, up to a maximum of 130 feet.
• Lots with no erosion data, accretion, or a zero erosion rate: 60 feet.

The ordinance also lets the city adjust the line on shallow lots so a minimum buildable area of 1,500 square feet remains, subject to the director’s review, and it requires newly created shoreline lots to accommodate a 130 foot setback. If you plan to rebuild, these numbers decide the size of your future house. Erosion rates and boundaries are lot specific, so confirm any lot with the Department of Planning and Permitting before you commit.

Comparing specific homes in these three areas and want the rules checked before you fall in love with one? Request a private consultation, or call or text me at (808) 459-6450.

Leasehold vs Fee Simple Pockets

For decades a few large landowners held much of Oahu’s land and leased it to homeowners. The U.S. Supreme Court noted in Hawaii Housing Authority v. Midkiff that on Oahu, 22 landowners owned 72.5 percent of the fee simple titles. Hawaii’s Land Reform Act of 1967 let lessees of single family lots buy the land under their homes, and the Court upheld it in 1984.

I never assume a home is fee simple. Condos and the occasional house can still be leasehold, which can look like a bargain until you read the lease rent and expiration date. The preliminary title report answers it. My full breakdown is in leasehold vs fee simple on Oahu.

HOA or No HOA

There is no single answer by neighborhood:

• Condos and townhomes in any of the three come with an association, budgets, reserves and house rules.
• Hawaii Kai marina waterfront carries marina fees and rules on top of anything else.
• Single family homes may have no association at all, a small subdivision association, or recorded restrictions that act like one.

Ask for the documents and the current dues in writing during escrow. Here is what to look for in them: Oahu HOA fees explained.

Flood, Tsunami and Sea Level Rise Disclosures

Hawaii’s seller disclosure law, HRS 508D-15, requires a seller to disclose when a home sits in a FEMA special flood hazard area, a tsunami inundation area, or the state’s sea level rise exposure area, among others. If the home is next to the shoreline, the seller must also disclose permitted and unpermitted erosion control structures, permit expiration dates, notices of violation and related fines.

You do not have to wait for the disclosure. Look up any address on the state’s Flood Hazard Assessment Tool and on the Hawaii sea level rise viewer. Flood zone status can affect insurance and loan requirements, so share it with your insurance agent and your lender early.

Commute and Getting Around

Kahala and Diamond Head are both inside the Primary Urban Center plan area, the same planning area as Waikiki and downtown. Hawaii Kai and Portlock are farther east in the East Honolulu plan area, with Kalanianaole Highway as the main road toward town.

I don’t quote drive times, because they change by the hour. Drive the route at your real commute time before you buy, or if you are on the mainland, I can do it for you on video. Here is how buying a home on Oahu from the mainland works.

Property Taxes at the High End

Honolulu’s Residential A tax class covers homes assessed above the city’s threshold that do not carry a home exemption, with a higher tier rate on value above that line. If the home will be your primary residence, the home exemption keeps it out of Residential A. Check the current threshold and rates on the city’s Residential A page, and read my guide to the Oahu home exemption. Confirm your own situation with a CPA.

How I Help You Compare Kahala vs Diamond Head vs Portlock

When a buyer is deciding between these three, here is my order:

• Tour all three to feel the difference in the land, the water and the drive.
• For any home you like, pull tenure, zoning, special district status and flood maps before we talk price.
• For oceanfront, find the certified shoreline and any seawall history. For marina homes and condos, get the association documents early.
• Write the offer around what we learned.

This is general information, not legal advice. For a lot you plan to rebuild on, bring in a land use attorney or planner.

FAQ

What is the shoreline setback in Kahala vs Hawaii Kai?

Since July 1, 2024, oceanfront lots in the Primary Urban Center plan area, which reaches Kahala, have a 60 foot setback from the certified shoreline. Hawaii Kai is in the East Honolulu plan area, where the setback is 60 feet plus 70 times the annual erosion rate, up to 130 feet. Confirm any specific lot with the city.

Is Diamond Head in a special district?

Much of the Diamond Head area is in the Diamond Head Special District under Honolulu’s Land Use Ordinance. It adds design controls such as height limits, setbacks, landscaping and subdued, non-reflective materials, and some projects need a special district permit.

Is Hawaii Kai leasehold?

The Hawaii Kai Marina was built on Kuapa Pond, which Bishop Estate leased to Kaiser Aetna in 1961, and the Land Reform Act of 1967 gave single family lessees on Oahu a path to buy their land. Today tenure varies by property, so check the preliminary title report on every home.

Do Hawaii Kai marina homes have HOA fees?

Yes. Marina waterfront lots pay fees for the upkeep of the private marina, a practice the U.S. Supreme Court described back in 1979. Ask for the association documents and current dues in writing during escrow.

Does a seller have to disclose if a home is in a flood zone or sea level rise area?

Yes. HRS 508D-15 requires disclosure for FEMA special flood hazard areas, tsunami inundation areas and the sea level rise exposure area, plus erosion control structures and related violations on shoreline parcels.

Kahala vs Diamond Head vs Portlock: The Bottom Line

The choice between Kahala vs Diamond Head vs Portlock comes down to the water you want, the land rules you can live with, and the paperwork behind each home. Kahala and Diamond Head share the 60 foot urban setback, Diamond Head adds a design district, and Portlock brings an erosion based setback and Hawaii Kai’s marina and leasehold history.

Sources

• City and County of Honolulu Ordinance 23-3 (Bill 41, 2022), Shoreline Setbacks
• Hawaii Revised Statutes 205A-43, Shoreline Setbacks
• Hawaii Revised Statutes 508D-15, Seller Disclosure of Designated Areas
• Honolulu DPP: Primary Urban Center Development Plan
• Honolulu DPP: East Honolulu Sustainable Communities Plan
• Honolulu DPP: Special District Permit (Major) Instructions
• Kaiser Aetna v. United States, 444 U.S. 164 (1979)
• Hawaii Housing Authority v. Midkiff, 467 U.S. 229 (1984)
• Hawaii DLNR: Diamond Head State Monument
• Honolulu Parks and Recreation: Hanauma Bay Nature Preserve
• Honolulu Real Property Assessment: Residential A
• Hawaii DLNR: Flood Hazard Assessment Tool
• PacIOOS: Hawaii Sea Level Rise Viewer

Deciding between Kahala, Diamond Head and Portlock? Request a private consultation, or call or text me at (808) 459-6450. I am Devin Hammack with Team Taparra at eXp Realty.

Closing costs for buyers on Oahu are the fees you pay on top of your down payment to finish the purchase: your lender’s charges, your share of escrow and title, recording fees, and a stack of prepaid taxes, insurance and interest. The one big Hawaii tax you have probably heard about, the conveyance tax, is paid by the seller, not you.

I get this question from almost every buyer, usually right after their first Loan Estimate. Here is each cost, who normally pays it on Oahu, where the real numbers come from, and how to bring your cash to close down, with links to the official pages.

In this guide:

• What closing costs for buyers on Oahu include
• Who pays the Hawaii conveyance tax
• Escrow fees and title insurance
• Lender fees, points and your Loan Estimate
• Prepaids, your escrow account and property tax
• How to lower your closing costs
• Protect your closing money from wire fraud
• Mistakes to avoid
• FAQ
• Bottom line

What Closing Costs for Buyers on Oahu Include

Every buyer’s list depends on the loan, the property and the contract, but on Oahu it usually sorts into these buckets:

Two more items can land on your side. VA buyers have a one-time funding fee unless exempt. And how your buyer’s agent is paid is set in your written buyer agreement; VA lists that commission among the costs a buyer and seller can negotiate. I go over it with every buyer before we tour.

Your down payment is separate from closing costs but part of your cash to close. For down payment options, see my first-time home buyer guide for Oahu.

Who Pays the Hawaii Conveyance Tax?

The seller. The Hawaii Department of Taxation’s Form P-64A instructions say the person subject to the conveyance tax is generally the grantor, seller, transferor or whoever is conveying the property. It is paid to the Bureau of Conveyances within 90 days of the transaction.

The twist: the rate the seller pays depends on you. On a condo or single-family home, the higher rate schedule applies when the buyer is not eligible for the county home exemption on property tax. Under the rates in those instructions (Rev. 2025):

• Under $600,000: 10 cents per $100 if the buyer qualifies for the home exemption, 15 cents per $100 if not
• $600,000 to under $1,000,000: 20 cents per $100 if the buyer qualifies, 25 cents if not
• $1,000,000 to under $2,000,000: 30 cents per $100 if the buyer qualifies, 40 cents if not

On a $700,000 condo, that works out to $1,400 for the seller if the buyer qualifies for the home exemption and $1,750 if not. Rates climb at higher prices, so check the current schedule before relying on a number.

If you plan to live in the home, tell me early. It does not change your closing costs, and you will want to file your own home exemption after closing. I explain that in my post on the Oahu home exemption.

Escrow Fees and Title Insurance on Oahu, Explained

In Hawaii, a neutral escrow company holds the money and documents and closes the sale. Escrow companies here are licensed and overseen by the state’s Division of Financial Institutions. Your purchase contract spells out how the escrow fee is split between you and the seller, and that split is negotiable.

Title insurance comes in two policies:

• Lender’s policy. The CFPB notes that most lenders require you to buy a lender’s title policy, which protects the amount they lend. If you have a loan, plan on this one.
• Owner’s policy. This protects you. The CFPB explains it can cover you if someone later claims a right to the home from before you bought it, such as a previous owner’s unpaid taxes or a contractor who says they were never paid.

Who pays for the owner’s policy is set in the contract, and VA lists title insurance among negotiable costs. The CFPB adds that you can usually shop for title insurance separately from your mortgage, and the total is usually lower when one company writes both policies.

Recording fees are the government charges to record your deed and mortgage in the public record.

Lender Fees, Points and Your Loan Estimate

The lender section is usually the biggest chunk of closing costs and varies most between lenders. It is on your Loan Estimate, a three-page form the lender must give you within three business days of your application. It shows your estimated rate, payment and total closing costs, and every lender uses the same form, so comparing is simple. Then, at least three business days before closing, your lender must give you the Closing Disclosure, a five-page form with your final terms and costs, so you can compare it to the estimate and ask questions.

Typical lender charges include an origination fee, the appraisal, a credit report and sometimes discount points. The plain version of points, from the CFPB:

• One point equals one percent of the loan amount. On a $500,000 loan, one point is $5,000.
• Paying points gets you a lower interest rate in exchange for more cash at closing.
• Lender credits work the other way: lower closing costs now in exchange for a higher rate.

The CFPB suggests asking a loan officer to show you options with and without points or credits and comparing total cost over how long you expect to keep the loan.

VA buyers have one extra line: the VA funding fee. VA says it is a one-time fee figured as a percentage of your loan amount, and you can either roll it into the loan or pay it at closing. Veterans receiving VA compensation for a service-connected disability, and some others, do not pay it. My VA loan guide for Oahu covers the rest of the VA side.

Want to know what your cash to close will look like before you write an offer? Get your Buyer Game Plan, or call or text me at (808) 459-6450 and I will help you read your Loan Estimate line by line.

Prepaids, Your Escrow Account and Oahu Property Tax

These catch buyers off guard because they are not really fees. They are your own future bills paid in advance.

• Homeowners insurance. Your first premium is often collected at closing.
• Prepaid interest. Interest from your closing date to the end of that month.
• Escrow account deposit. A starting cushion for the account your lender uses to pay your property tax and insurance.

The CFPB describes an escrow account as one your lender sets up to pay property expenses like taxes and insurance out of your monthly payment, and it notes that many lenders require one.

On Oahu, the property tax year runs July 1 to June 30. For the tax year that started July 1, 2026, the City’s Real Property Tax Timeline shows the first half payment was due August 20, 2026 and the second half is due February 20, 2027. Escrow prorates the tax so you and the seller each pay for the days you own the home, and association dues are prorated the same way. My guide to Oahu HOA fees explains what those dues cover.

So two buyers at the same price can have very different prepaid totals just by closing in different months. That is why I never quote one flat number.

How to Lower Your Closing Costs on Oahu

You cannot make closing costs disappear, but you have real levers:

• Ask for a seller credit. A seller can agree to pay part of your costs at closing. On a VA loan, VA does not limit credits for normal loan closing costs but caps seller concessions at 4% of the home’s reasonable value. Other loan types have their own limits; ask your lender.
• Compare Loan Estimates. Get at least two and compare fees and rate together, or use lender credits if cash is tight.
• Shop title insurance. The CFPB says you can usually choose your title provider separately from your mortgage.
• Pick your closing date on purpose. It changes your prepaid interest. Ask your lender to run two dates.

Whether a seller says yes to a credit depends on the demand for that specific home, and that is a big part of how I write offers.

Protect Your Closing Money From Wire Fraud

The CFPB warns that mortgage closing scams typically start days before closing with an email that looks like it came from your agent or escrow, announcing last-minute changes to the wiring instructions.

• Save the phone numbers for me and your escrow officer at the start, and only use those numbers.
• Treat any change to wiring instructions as fake until you confirm it by calling a number you saved yourself.
• Do not call numbers or click links in an email about your wire.
• If you think you wired money to the wrong place, call your bank immediately to try to stop or reverse it, and file a complaint with the FBI Internet Crime Complaint Center.

I will never email you new wiring instructions.

Mistakes to Avoid

• Budgeting only for the down payment. Your cash to close is the down payment plus closing costs plus prepaids, minus any credits.
• Comparing lenders on rate alone. A lower rate with points can cost more at closing than a slightly higher rate without them.
• Assuming the seller pays for everything. Buyers closing remotely should read my guide to buying on Oahu from the mainland.
• Skipping the owner’s title policy without thinking it through. It is optional, but it protects you, not the lender.

This guide explains how closing costs generally work on Oahu. It is not legal or tax advice; for tax questions like deducting points, talk to a CPA, and for contract questions, an attorney.

Closing Costs for Buyers on Oahu: FAQ

Does the buyer pay the conveyance tax in Hawaii?

Generally no. The Department of Taxation’s instructions say the person subject to the tax is generally the seller or whoever is conveying the property. The rate the seller pays is lower when the buyer qualifies for the county home exemption.

How much are closing costs for buyers on Oahu?

It depends on your loan, price, lender and closing date. Your Loan Estimate shows your estimated total, and your Closing Disclosure shows the final figure at least three business days before closing.

Can the seller pay my closing costs?

Yes, if they agree to it in the contract. Each loan type has its own limit on seller concessions. For VA loans, VA caps seller concessions at 4% of the home’s reasonable value but does not limit credits for normal loan closing costs.

Do I need owner’s title insurance?

Your lender will usually require a lender’s policy. The owner’s policy is optional, but it protects you if someone later makes a claim against the home from before you bought it, such as unpaid taxes or an unpaid contractor.

Why is my escrow account deposit so large?

Your lender collects a starting balance to pay upcoming property tax and insurance bills. On Oahu, tax installments are due in August and February, so your closing month affects the amount.

The Bottom Line on Oahu Closing Costs for Buyers

As a buyer on Oahu you pay your lender’s fees, your share of escrow and title, recording fees and your prepaids, while the seller pays the conveyance tax. Your honest number comes from your own Loan Estimate, and credits and a smart closing date can bring it down. Read your Closing Disclosure the day it arrives and verify every wire by phone.

Sources

• Hawaii Department of Taxation: Instructions for Form P-64A, Conveyance Tax Certificate (Rev. 2025)
• Hawaii Department of Taxation: Conveyance Tax Forms
• CFPB: What is a Loan Estimate?
• CFPB: What is a Closing Disclosure?
• CFPB: What is owner’s title insurance?
• CFPB: How should I use lender credits and points?
• CFPB: What is an escrow or impound account?
• CFPB: Buying a home? Beware of mortgage closing scams
• VA.gov: VA funding fee and loan closing costs
• City and County of Honolulu: Real Property Tax Timeline and Important Dates, Tax Year 2026 to 2027
• Hawaii DCCA: Division of Financial Institutions

Ready to see your own numbers? Get your Buyer Game Plan, or call or text me at (808) 459-6450. I am Devin Hammack with Team Taparra at eXp Realty.

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.

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

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.

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:

1. Talk to a participating lender. They check your eligibility and pre-qualify you. The current list is on HHFDC’s participating lenders page.
2. Take the homebuyer education course through a HUD-certified housing counseling agency.
3. Find a home with a licensed agent that fits the program’s price and property rules, and write the offer.
4. Your lender reserves the program funds once your offer is accepted.
5. 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:

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

If you are buying your first condo in Honolulu, the most important thing to know is this: you are buying into a building and an association, not just a unit. The buyers who do well check the land ownership, the monthly fee, the loan approval, the reserves and the house rules before they fall in love with the view.

For a lot of first-time buyers in town, a condo is the realistic first step into ownership. Here is the checklist I walk my own buyers through before we write an offer, with links to the official pages so you can check the rules yourself. You can also browse current listings on my Honolulu homes for sale page.

In this guide:

• How condo ownership works in Hawaii
• Is it fee simple or leasehold?
• What the maintenance fee covers
• FHA, VA and conventional condo approval
• Reading the association documents
• Reserves, fire safety and special assessments
• House rules, parking and storage
• Condo insurance: master policy vs HO-6
• Your real monthly number and the home exemption
• New developer units vs resale
• FAQ
• Bottom line

How Condo Ownership Works in Hawaii

Hawaii’s Real Estate Branch puts it simply: a condominium is a form of ownership, not a type of building. You own your unit and share the common elements, like the lobby, roof and parking structure, with every other owner.

The building is run by an association of unit owners (you will often hear it called the AOUO or AOAO) and its board of directors. The rules come from Hawaii’s condo law, Chapter 514B of the Hawaii Revised Statutes, plus the building’s own declaration, bylaws and house rules. The Real Estate Branch condo resources page has free guides worth bookmarking.

1. Is It Fee Simple or Leasehold?

This is the first thing I check on any Honolulu condo. Fee simple means you own your unit and your share of the land. Leasehold means you own the unit but lease the land, and the lease has an end date. Leasehold units often look like a bargain for exactly that reason. Some can make sense, but you need to know what you are buying. My leasehold vs. fee simple guide breaks it down.

On a leasehold unit, I want to see the lease itself: when it ends, what the lease rent is and when it can change. The association has to make any master lease available to owners and their agents, so ask early, and ask your lender whether the remaining term affects financing.

2. What Does the Maintenance Fee Cover?

Every condo has a monthly maintenance fee paid to the association. Depending on the building, it can cover water, sewer, the master insurance policy, maintenance, staff, amenities and reserves. Two units at the same price can have very different fees, so compare what is included, not just the number.

The fee also counts in your loan qualification, right next to your mortgage payment. A higher fee means a lower price you qualify for. My Oahu HOA fees guide goes deeper on this.

A few questions I ask about every fee:

• What utilities are included, and is electricity separate?
• How much of the fee goes into the reserve fund?
• Has the fee gone up recently, and does the budget show more increases coming?

3. FHA, VA and Conventional Condo Approval: Can Your Loan Be Used in This Building?

Not every building is approved for every loan type, and this catches a lot of first-time buyers.

FHA loans

According to HUD’s FHA condominium page, FHA insures condo loans in an FHA-approved project, or in a project that is not approved but meets the Single-Unit Approval rules. For a single-unit approval, the project has to be complete and ready for occupancy, have at least five units, and meet a subset of FHA’s project rules, including limits on how many units already have FHA loans, owner-occupancy and the financial condition of the association. You can look up a building on HUD’s FHA-approved condo search, which shows whether a project is approved, expired, rejected or withdrawn.

VA loans

The VA Home Loan Guaranty Buyer’s Guide says a VA loan can be used to buy a condo in a VA-approved project. VA keeps a list of approved condos, and if a building is not on the list, the project has to be submitted to VA for review. You can request a report on VA’s condo report page. If you are using a VA loan, read what to do when your building is not on the VA list, and if you are active duty, my BAH and home affordability post shows how to think about your budget.

Conventional loans

Conventional loans have building rules too. Fannie Mae’s Selling Guide project standards say the lender has to confirm the project meets Fannie Mae’s eligibility requirements before the loan can be sold to them, and that review is separate from the review of you as a borrower. Lenders often use a condo questionnaire from the management company to check the finances, litigation and insurance. Ask your lender how long that takes.

Not sure which loan fits the building you like? Get your Buyer Game Plan, or call or text me at (808) 459-6450 and I will help you check the building before you get attached.

4. Read the Association Documents

Once you are in contract, you will receive the association documents. This is where you learn how healthy the building really is. Hawaii law (HRS 514B-154.5) requires the association to make key records available to owners and their authorized agents, including the records needed for resale disclosures, the declaration, bylaws, house rules, any master lease, board meeting minutes, financial statements and insurance policies.

Here is what I actually read, and what I am looking for:

• The budget and reserve summary: the reserve balance and what the reserve study says the building should be collecting.
• Special assessments: are any planned or already approved?
• Board minutes: what projects, problems or fee changes the board is talking about. Minutes are often where a future assessment shows up first.
• Insurance: what the master policy covers and what the deductible is.
• House rules: pets, rentals, renovations, moving hours and parking.

5. Reserves, Fire Safety and Special Assessments

Reserves are the money the association saves for big future repairs like roofs, elevators, plumbing and painting. Under HRS 514B-148, a Hawaii association’s budget summary has to show the reserve balance and the reserve payments its reserve study says the building needs. The association has to fund at least 50 percent of those estimated reserve payments, or 100 percent if it uses a cash flow plan. The full text is in the state’s copy of HRS Chapter 514B.

What that means for you: a building can follow the law and still be underfunded. If the reserve balance looks low next to the repairs ahead, ask how the work will be paid for: a special assessment, a loan or a higher fee.

Fire safety is a big one for older Honolulu high-rises. The same section says that in a county with more than 500,000 people, which covers Honolulu, the budget has to include the estimated cost of fire safety equipment or installations that meet the county’s building fire and life safety evaluation, and it allows the reserve study to forecast a loan or special assessment to pay for it. If you are looking at an older tower, ask the association where the building stands on that work and how it is being funded.

One more protection: except in emergencies or with majority owner approval, a board cannot exceed its adopted operating budget by more than 20 percent in a year. The Real Estate Branch has a free special assessments brochure on its condo resources page.

6. House Rules, Parking and Storage

Every building has house rules. Many limit pets by size or number, and many have rules about renting the unit out, including minimum rental periods. If you have a pet or think you might rent the unit out one day, read the house rules before you make an offer, not after.

Renovation rules matter too. Many buildings require board approval for flooring, plumbing or electrical work, so check before you plan a remodel.

Ask how many parking stalls come with the unit, where they are, and whether they are assigned to the unit or rented. Same for storage. These details matter a lot in town and they are easy to miss on a quick tour.

7. Insurance: The Building Policy Is Not Your Policy

Under HRS 514B-143, unless the declaration or bylaws say otherwise, the association has to carry property insurance on the common elements for their full replacement cost, plus general liability coverage. In buildings with attached units, that policy includes the units themselves to the extent reasonably available, but it does not have to cover improvements an owner added, like upgraded flooring or cabinets.

That is why you want your own walls-in condo policy, often called an HO-6. It is meant to pick up what the master policy leaves out, like your belongings and your upgrades, so ask your insurance agent exactly what yours covers. Ask what the master policy deductible is and how the building handles it, then get a real HO-6 quote during your contingency period. The Real Estate Branch has plain-English insurance guides on its resources page.

8. Your Real Monthly Number and the Home Exemption

Your true monthly cost is your mortgage payment plus the maintenance fee, property taxes, your HO-6 insurance and any lease rent or parking fee. Get pre-approved first so your lender can show you exactly what fits. Affordability is your lender’s call, so have them run it with the real fee for the building you like. If you are a first-time buyer, also look at Hawaii’s first-time buyer programs. Some of them allow condos.

Once you own and live in the condo as your main home, file for the Honolulu home exemption. According to the city’s Real Property Assessment home exemption page, it currently lowers the taxable value of an owner-occupied principal residence by $120,000, or $160,000 if you are 65 or older, and those amounts rise to $140,000 and $180,000 effective July 1, 2027. Check that page for the current filing deadline, because you have to file for it; it does not happen on its own.

9. New Developer Units vs Resale Condos

Buying a brand new unit from a developer works differently. Under HRS 514B-86, a sales contract with a developer is not binding until the developer delivers the developer’s public report, the recorded declaration and bylaws, house rules and a condo map, along with a notice of your 30-day cancellation right. You can cancel up to midnight of the 30th day after you sign and receive those documents. Closing early or letting the 30 days pass waives it.

The Real Estate Branch keeps a searchable database of developer’s public reports and association information, linked from its condo resources page. For a resale unit, your review period in the purchase contract is where you do your homework. This is general information, not legal advice; if something in the documents worries you, talk to a real estate attorney.

Buying Your First Condo in Honolulu: FAQ

Can I use an FHA loan on any condo?

No. The project has to be FHA-approved, or the unit has to qualify for FHA Single-Unit Approval, which requires a complete project with at least five units that meets part of FHA’s project rules. You can check a building on HUD’s FHA-approved condo search.

Can I use a VA loan on a condo?

Yes, if the project is VA-approved. VA keeps a list of approved condos, and a building that is not on the list has to be submitted to VA for review.

What is a special assessment?

A special assessment is a one-time or temporary charge the association bills owners, usually for a big repair or project. Board minutes, the reserve study and the budget are the best places to spot one coming.

Does the maintenance fee affect how much I can borrow?

Yes. Lenders count the monthly maintenance fee along with your mortgage payment, so a higher fee lowers the price you qualify for. Ask your lender to run the numbers with the real fee.

Buying Your First Condo in Honolulu: The Bottom Line

A condo can be a smart first home on Oahu, as long as you know the building as well as you know the unit. Check fee simple or leasehold, understand the fee, confirm your loan works in the building, read the reserves and the minutes, and get your own insurance quote.

Sources

• Hawaii Real Estate Branch: Resources for Condominium Owners, Prospective Buyers, and Boards
• Hawaii Revised Statutes Chapter 514B, Condominiums (DCCA copy)
• HUD: FHA Condominiums
• HUD: FHA-Approved Condominium Search
• VA Home Loan Guaranty Buyer’s Guide
• VA: Request a Customized Condo Report
• Fannie Mae Selling Guide B4-2.1-01: General Information on Project Standards
• City and County of Honolulu Real Property Assessment: Home Exemption

Want a step by step plan for your purchase? Get your Buyer Game Plan, or call or text me at (808) 459-6450. I am Devin Hammack with Team Taparra at eXp Realty.