Hale Kamaʻāina Mortgage Program – Down Payment Assistance (DPA) Loan
Hawaiʻi Housing Finance & Development Corporation (HHFDC), a state agency under the Dept. of Business, Economic Development & Tourism
Amount: A second-mortgage DPA loan equal to 4% of the first mortgage loan amount (based on the lesser of purchase price or appraised value). It accrues simple interest at 1%/year, requires no monthly payments, and is due in full at mortgage payoff, sale, or refinance. HHFDC may forgive the accrued interest (not the principal) at its discretion if the borrower stays in full compliance for at least 10 years. Taking the DPA loan raises the first-mortgage rate by 0.25% (e.g., government loans go from 5.40% without DPA to 5.65% with DPA; conventional loans go from 5.70% to 5.95%, per HHFDC's official program FAQ effective 2026).
Type: State HFA second-mortgage down payment assistance loan (deferred payment, partially forgivable interest, paired with a 30-year fixed first mortgage funded by tax-exempt bonds)
Must be a first-time homebuyer (borrower and spouse must not have owned/held interest in a principal residence in the past 3 years; exceptions for veterans and targeted-area purchases). Must be a U.S. citizen or resident alien, bona fide Hawaii resident, age 18+, buying a principal residence, and complete HUD-approved homeownership counseling. For the DPA loan specifically, borrower must not own any other residential property in the state and must not have previously received a DPA loan under HHFDC's prior (repealed) Downpayment Loan Program. Household income must fall within HHFDC limits, which vary by county and household size — e.g. (non-targeted areas) Honolulu: $152,000 (1-2 person)/$174,800 (3+); Hawaii County: $123,000/$141,450; Maui: $161,520/$188,440; Kauai: $159,480/$186,060; higher limits apply in targeted (economically disadvantaged) areas. Purchase price limits also apply by county (non-targeted), e.g. Honolulu $809,458, Hawaii County $593,364, Maui/Kalawao $1,141,360, Kauai $1,153,299. No statewide minimum credit score is published in HHFDC's own FAQ, though participating lenders (e.g., via eHousingPlus) generally apply a 660 minimum FICO.
Mortgage Credit Certificate (MCC) Program
Hawaiʻi Housing Finance & Development Corporation (HHFDC)
Amount: Federal income tax credit equal to a percentage of annual mortgage interest paid (reported at up to 20% in current program materials), subject to a $2,000 annual federal cap; the remaining mortgage interest can still be claimed as a standard itemized deduction. This is not cash toward closing/down payment but increases monthly take-home pay, indirectly helping buyers afford payments alongside a down payment.
Type: Federal tax credit certificate administered by the state HFA (not a direct down-payment cash grant)
Must be a first-time homebuyer (no ownership interest in a principal residence during the prior 3 years), purchasing and occupying the home as a principal residence within about 60 days of closing. Subject to HHFDC household income limits by county/family size — 2026 non-targeted-area limits reported at approximately $142,419 (family size 2 or less) and $163,782 (family size 3+), with different figures for targeted areas and other counties. Purchase price limits similar to the Hale Kamaʻāina program apply. Must be used with an MCC-participating lender.