By Tyler Thompson · Licensed Real Estate Agent · Updated October 25, 2026

Honolulu HI Down Payment Assistance & Homebuyer Programs

See programs you qualify for

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Honolulu down payment assistance centers on the City's $40,000 zero-interest loan; compare it with VA, FHA and 3% down mortgages against an $843,400 median.

Verified Oct. 2026

Median home value
$843,400
Census ACS 2020-2024
3% down
$25,302
Before closing costs
Closing costs
$17k–$26k
Planning estimate
Assistance paths
2 programs
Plus 6 mortgage options

Start with the program that matches the property

Honolulu's City loan of $40,000 is repaid at $166.67 a month and caps income at $123,200 for four, so it suits Oahu condos far better than the $843,400 median house. HHFDC's state second loan comes back only once its Act 214 terms publish, and veterans can skip the down payment entirely.

City and County

City and County of Honolulu Down Payment Loan

Up to $40,000

Up to $40,000 at 0% with no loan fees for Oahu buyers who own no home, repaid over 20 years.

Military and veterans

VA

0% down with full entitlement

Eligible veterans and service members can buy with no down payment, the biggest cash saving available at Honolulu prices.

Lender network

HomeReady

3% down payment

Fannie Mae's 3% down loan for borrowers within 80% of area median income, usable on approved Honolulu condos.

Plan the cash

What buying in Honolulu costs

Median home value$843,400
3% down payment$25,302
Estimated closing costs$17,000–$25,500
Estimated cash before assistance$42,302–$50,802

Estimate only, not a quote. Escrow, title, lender and appraisal charges, and first-year insurance and tax reserves at about 2% to 3% of an $843,400 price.

Keep cash help separate

Down payment assistance in Honolulu

City and County of Honolulu Down Payment Loan ProgramMaximum:Up to $40,000Best fit:Oahu households under the City's 2026 income chartRepayment / limit:0%, $166.67 a month for 20 years; First come, first served
Hale Kamaaina Mortgage Program Down Payment LoanMaximum:Second loan; 2026 terms pendingBest fit:Conditional: Only after Act 214 terms publishRepayment / limit:Terms await Act 214 rules (2026)

Mortgage options that may pair with assistance

These are financing routes, not additional cash awards. Eligibility and compatibility still depend on the lender and program rules.

HomeReady and Home Possible are conventional mortgages backed by Fannie Mae and Freddie Mac; FHA, VA and USDA loans are government-backed.

Make a decision

Find your best starting point

Lower-income family

Start with the City loan

A household of four earning up to $123,200 can borrow $40,000 at 0% from the City, but the $166.67 monthly payment counts in the debt ratio.

Veteran or service member

Check VA before anything else

VA needs no down payment, so a Honolulu veteran mostly needs closing costs, roughly $17,000 to $25,500 at the median price.

Condo buyer

Confirm the building first

FHA requires an approved condo project, and the City loan requires a legally permitted unit that passes inspection, with a lead review before 1978.

Property and geography checks

City Down Payment LoanWhere:Anywhere in the City and County (Oahu)Gate:Permitted home that passes City inspection; lead review if built before 1978; environmental review
City Down Payment LoanWhere:Funds checked by your lenderGate:First come, first served; your lender must confirm funds and get the City's submission checklist
HHFDC second loanWhere:Statewide; Honolulu non-targeted areasGate:Price ≤ $866,346, income ≤ $154,805 for 1–2 (June 13, 2026); HUD-approved counseling first
FHA loansWhere:Condos in FHA-approved projectsGate:Unapproved condo buildings cannot take FHA financing
VA loansWhere:Owner-occupied homes on OahuGate:Certificate of Eligibility and a funding fee unless exempt

The fastest way to avoid a bad match

Check the address, property type and price cap before comparing assistance amounts.

A larger advertised benefit doesn’t help if the home or lender is outside that program’s rules.

We’ll fill in its city and state on the free eligibility check. A mailing address that says Honolulu isn’t always inside city limits, so confirm with the program before you make an offer.

See the math

Two realistic purchase examples

Illustrations only. Approval, availability and program combinations depend on current rules.

$500,000 condo with the City loan

Price$500,000
Down payment$50,000
Closing costs$12,500
City Down Payment Loan−$40,000
Estimated gap$22,500

A family of four under $123,200 puts 10% down so the first loan is $450,000; the City loan covers $40,000 of it.

Veteran buying at the $843,400 median

Price$843,400
Down payment$0
Closing costs$21,250
Estimated gap$21,250

VA with full entitlement and no down payment; closing costs at the midpoint of the local range, before any seller credit.

How to apply in Honolulu

  1. 1

    Book free pre-purchase counseling

    Hawaiian Council (CNHA), HUD-certified counseling

    Hawaiian Council offers free pre-purchase counseling statewide on FHA, VA, conventional and USDA loans. Ask the City which homeowner education courses it approves before you enroll, since its loan requires one.

    808-596-8155 · hawaiiancouncil.org

  2. 2

    Ask about the City down payment loan

    Department of Community Services, Rehabilitation Loan Branch

    The branch at 51 Merchant Street runs the $40,000 loan. Check the July 2026 income chart and the City-approved course list before you apply for a first mortgage.

    (808) 768-7076 · honolulu.gov

  3. 3

    Tell your lender you want the City loan

    Your first mortgage lender

    The lender contacts the City to confirm funds and get the submission checklist, then sends your file for an eligibility decision. Ask it to count the $166.67 payment in your debt ratio from the start.

    honolulu.gov

  4. 4

    Confirm permits and condo approval

    Your agent and lender

    Request permit records early: the City loan needs a legally permitted home that passes inspection. FHA buyers also need the condo project on FHA's approved list.

    hud.gov

  5. 5

    File the home exemption by September 30

    Real Property Assessment Division

    Once you own and live in the home, claim the $120,000 home exemption ($160,000 at 65 or older) by September 30 for the next tax year, online at realproperty.honolulu.gov.

    (808) 768-3799 · realproperty.honolulu.gov

Free eligibility check

2 assistance programs and 6 mortgage options may be available in Honolulu. See which ones fit you.

  • Free
  • No credit check
  • Takes 2 minutes

Are you a first-time homebuyer?

YesNoNot sure
Question 1 of 6
HouseBuyerGuides.comhousebuyerguides

Local details matter

Buying considerations in Honolulu

Older, attached housing

Census puts Honolulu's median year built at 1974 and the detached single-family share at 27.1%, so many buyers face condo rules and pre-1978 lead reviews.

Claim the home exemption

Oahu owner-occupants can exempt $120,000 of assessed value, or $160,000 at 65 or older, but must file by September 30 before the tax year begins.

Low tax, high price

Census reports a $2,491 median tax bill, about 0.30% of the $843,400 median value, so the purchase price, not the tax, drives monthly cost.

Fewer owners than renters

Only 48.9% of Honolulu homes are owner-occupied and the median rent is $1,823, so many buyers come from renting, which the City loan's no-home-owned rule allows.

Frequently Asked Questions

Does Honolulu have its own down payment assistance program?+
Yes. The City and County of Honolulu's Down Payment Loan Program lends up to $40,000 at 0% interest with no loan fees, repaid over 20 years at $166.67 a month. It is funded with federal HOME money and run by the Department of Community Services' Rehabilitation Loan Branch at (808) 768-7076. Loans go out first come, first served, so your lender must confirm funds remain.
Can I use the City loan on a median-priced Honolulu house?+
Not often, because of the income limits. The median owner-occupied value is $843,400, while the City's 2026 income limit is $123,200 for a family of four and $98,600 for a couple. At those incomes, a lender seldom approves a first mortgage large enough for a median house. The loan fits condos and townhomes better: on a $500,000 condo, $40,000 covers most of a 10% down payment.
Do older Honolulu condos qualify for the City down payment loan?+
Yes, if the unit is a legally permitted structure that passes a City inspection. Because the money is federal, homes built before 1978 need a lead-based paint review and every purchase gets an environmental review. With a median year built of 1974 in Honolulu, many units fall into the lead review, so allow extra time in escrow and request permit records from the seller early.
When should a new Honolulu owner file for the home exemption?+
Not later than September 30. The Real Property Assessment Division requires you to own and occupy the home as your principal residence by September 30 to claim the exemption for the tax year that starts the next July 1. It removes $120,000 of assessed value, or $160,000 for owners 65 or older, and can be filed online at realproperty.honolulu.gov.
How much cash does a veteran need to buy in Honolulu?+
About $17,000 to $25,500 at the median price, because VA loans with full entitlement need no down payment. That range is the estimated closing cost on an $843,400 home, before any seller credit. By comparison, an FHA buyer at the same price would need $29,519 more for the 3.5% minimum down payment, which makes VA the largest cash saving for eligible Honolulu buyers.

Buying elsewhere in Hawaii? Compare all Hawaii home buyer programs →

Sources

Last verified October 25, 2026.

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