A home is one of the most expensive assets that you will purchase. Fortunately, there are several real estate financing options available for those who live in Hawaii and would like to purchase property there. Programs are available to both first-time buyers as well as those who currently own a home. Furthermore, they may be able to help you finance 100% of your home’s purchase price, which means that your down payment and closing costs can be rolled into your loan.

Affordable Resale Program

If you are a United States citizen or permanent resident who resides in Hawaii, you may be eligible for the Affordable Resale Program. This program is offered to first-time buyers who do not own property in the United States or anywhere else in the world. They must also meet income and household requirements to be eligible for assistance. Properties are acquired by the Hawaii Housing Finance and Development Corporation (HHFDC) and then distributed to qualified applicants through a lottery process.

Those who are awarded these properties are typically required to stay there for at least a decade to avoid buyback or other penalties. There is no guarantee that units will be available when you submit an application to acquire properties through this program. If there are no properties available when you submit your application, you will be put on a waiting list and notified when an eligible unit does become available.

Combo 100 Program

As a first-time buyer, you may also qualify for the Combo 100 program that allows you to combine a traditional mortgage with a home equity line of credit (HELOC). The program is offered through Hawaii State Federal Credit Union, which only works with residents of the state.

If you qualify for the Combo 100 loan, you can effectively finance 100% of your mortgage and other costs up to $750,000. This is because there is no down payment requirement nor is there a minimum contribution requirement. In other words, you can use gifted funds to take care of closing costs or other expenses that you might incur during the process of obtaining your mortgage.

This program is also available for those who currently own property or who may have had an interest in a real estate trust in the recent past. Other than the $750,000 loan limit, there are few requirements as to which property you can purchase. This may be ideal for parents who are looking for a larger home to accommodate their growing family or who want to live closer to a quality school district without causing a financial hardship. It may also be ideal for those who have medical issues and who need to live as close as possible to their doctor or to a specific hospital


Hawaii Home Financing Through the FHA

The Federal Housing Administration (FHA) offers programs to first-time buyers who live in Hawaii and meet other requirements. The FHA defines a first-time buyer as anyone who has never purchased a home or someone who has not purchased a home in the past three years. You may also be classified as a first-time buyer if you lived in a home that was owned by a spouse or if you were displaced from a home that you owned.

If you are over the age of 18 who don’t currently own property, you may want to look into using the Hula Mae Mortgage Loan Program. Home loan and household income limits apply and vary based on the county where your preferred property is located. A household is defined as the total number of people over the age of 18 living in the same home.

This is generally true even if you are the only one who is on the mortgage or the deed to the property. The Hula Mae Program also offers loans meant to cover your down payment and other closing costs if you need help doing so.

Hawaii is known for its sandy beaches and warm weather throughout the year. However, it also has a competitive real estate market that has resulted in healthy profits for property owners. Fortunately, there are a number of programs geared toward those who are looking to put down roots in the community as well as help build wealth for themselves and their descendants.


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