Down Payment Assistance in Hawaii

What is down payment assistance in Hawaii?

Hawaii routinely tops the list for the country’s highest home prices, but with the right down payment assistance, buyers across the islands are still finding practical ways to make homeownership work.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the volcanic peaks of the Big Island to the lush valleys of Kauai, Hawaii homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in Hawaii or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in Hawaii

The Hawaii Housing Finance and Development Corporation (HHFDC) is the state’s housing finance agency and the central source for statewide DPA programs. HHFDC doesn’t lend directly to buyers. Homebuyers apply through an HHFDC-approved participating lender, which will combine the assistance with the mortgage.

HHFDC Hale Kamaʻāina Down Payment Assistance Program

The Hale Kamaʻāina Down Payment Assistance program offers qualified first-time homebuyers competitive fixed-rate 30-year mortgage financing that can be combined with optional down payment assistance. Formerly known as the Hula Mae Single Family Mortgage Program, the Hale Kamaʻāina program offers eligible borrowers the option to receive a 4% second mortgage loan to be used toward the down payment. The DPA accrues at a rate of 1% per year and does not require monthly payments.  

The requirements for Hale Kamaʻāina down payment assistance include the following:

• Borrowers must contribute a minimum of 5% of the sales price toward the purchase
• Must be a first-time homebuyer
• Repayment of the assistance is required if the home is sold, refinanced, or maturity of the first mortgage loan
• Meet household income limits and maximum purchase price
• Must be 18 years old or older, a resident of Hawaii, and a U.S. citizen or resident alien
• Homebuyer must complete a homeowner education course
• Home must be used as primary residence by the borrower

HHOC Mortgage Down Payment Assistance Programs

In addition to the HHFDC, Hawaii is also served statewide by HHOC Mortgage, the lending affiliate of the nonprofit Hawaii HomeOwnership Center. Founded to help low- to moderate-income families achieve their first home purchase, HHOC Mortgage is Hawaii’s only nonprofit mortgage broker and offers its own down payment and closing cost assistance programs, alongside brokering first mortgages through local and national lenders.

Down Payment Assistance Loan (DPAL) Program: This program provides an affordable alternative to mortgage insurance for buyers who can put down at least 3%. It’s amortized over 30 years, with interest set at 4.5% or matched to the first mortgage rate, whichever is lower.

DPAL requirements include:

• Household income up to 130% of area median income (AMI.) This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development
• Minimum 3% down payment
• Maximum loan amount of $125,000
• No mortgage insurance and no pre-payment penalty

Max HLPR (Home Loan Payment Relief) Loan: This program offers a deferred down payment loan with no interest and no monthly payments, structured as a shared appreciation equity agreement.

Max HLPR requirements include:

• 0% interest
• Deferred principal repayment for 20 years, or earlier if the borrower sells, moves out, or takes cash out (such as through a refinance or a HELOC)
• Repayment tied to a shared appreciation agreement

Deferred Closing Cost Assistance Loan: This program provides a deferred loan with no interest and no monthly payments, which can go toward closing costs, including a rate buydown.

Deferred Closing Cost Assistance Loan requirements include:

• Loan up to $10,000, with a matched $5,000 in savings from the borrower (loan capped at $5,000 for Honolulu County buyers)
• Household income up to 80% of Area Median Income
• Property must be used as a primary residence, with a yearly occupancy affidavit
• Deferred for 15 years, or earlier if the borrower moves out, changes the title, or takes equity out

Mortgage Booster: A pilot program designed to boost how much a borrower can qualify for amid higher interest rates.

Mortgage Booster requirements include:

• Minimum 3% down payment
• Fixed 3% interest rate
• Maximum loan amount of $50,000
• Amortized over 30 years
• Household income up to 120% of Area Median Income

Beyond HHFDC’s statewide program, several Hawaii cities and counties have established their own DPA programs. Many of these can be stacked with HHFDC assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

Honolulu down payment assistance program

Honolulu is Hawaii’s largest metropolitan area, encompassing the entire island of Oahu, from the high-rises of Waikiki to quieter North Shore surf towns. As the state’s economic and government hub, it offers homebuyers a mix of urban condos, historic neighborhoods, and suburban communities, all set against a backdrop of world-famous beaches and year-round tropical weather.

Honolulu down payment assistance program includes:

Down Payment Loan: This program provides up to $40,000 to first-time homebuyers. The loan is offered at 0% interest and must be used as additional down payment toward the sales price.  

Program details and requirements include:

• Must have household income of up to 80% AMI for Oahu
• Borrowers are required to contribute a minimum of 5% of the sales price
• Monthly payments are amortized on a 20-year term, equivalent to $166.67 monthly
• Completion of a homeownership education course
• Property must be primary residence during the life of the loan
• Loan must be repaid if property is sold or transferred
• Funds are subject to availability and offered on a first-come, first-served purpose

Maui down payment assistance program

Maui County spans the islands of Maui, Molokai, Lanai, and Kahoolawe, known for its resort towns, dramatic coastline, and the winding Road to Hana. Beyond the tourist draw, buyers can find a mix of small towns like Wailuku and Kahului, along with a slower pace of life and access to some of Hawaii's most striking natural scenery, from Haleakala’s summit to Maui’s famous beaches.

Maui down payment assistance program includes:

First-Time Homebuyer's Down Payment Assistance Program: The program offers up to $30,000 or 5% of the purchase price or appraised value (whichever is less) as a grant that can be used toward down payment and closing costs. Intended to assist low- to above-moderate income homebuyers, the funds are subject to availability.

Program details and requirements include:

• Grants are secured by a lien that runs in perpetuity
• The grant must be repaid if the home is refinanced, sold, the grantee no longer occupies the home as a primary residence, or false information was provided to secure the grant
• Must be a resident of the County of Maui at the time the application is submitted
• Must be a U.S. citizen or resident alien
• Household income must be at or below 140% of AMI
• Cannot have assets totaling more than $75,000
• Completion of a homebuyer education course

These are some of the down payment assistance programs available across Hawaii. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for Hawaii down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at dbedt.hawaii.gov/hhfdc. For local programs, contact the relevant city or county housing office.  
2. Find a participating lender. HHFDC programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying Hawaii property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

Hawaii down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}