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Down Payment Assistance Loan (DPAL) Program

Statewide, Hawaii

Last verified
See what you qualify forOfficial program site →
Assistance

$125,000

The maximum the program publishes — not an offer

Income limit

130% AMI

Of area median income; varies by county and household size

Repayment

Repayable

Repaid on the terms set by the administering agency

What is Down Payment Assistance Loan (DPAL) Program?

Down Payment Assistance Loan (DPAL) Program is a repayable second loan for homebuyers in Statewide, Hawaii.

  • The DPAL Program from HHOC Mortgage provides an affordable alternative to private mortgage insurance for first-time homebuyers in Hawaii. It is a 30-year amortizing second mortgage of up to $125,000 paired with a 3%-minimum-down first mortgage originated by HHOC Mortgage. The DPAL second-mortgage rate is set at 4.5% or matches the first mortgage rate, whichever is lower. No PMI required. Open to households up to 130% AMI; minimum mid-FICO 700.
  • Affordable alternative to private mortgage insurance: amortizing 30-year second mortgage of up to $125,000 paired with a 3% minimum down payment first mortgage from HHOC Mortgage. Interest rate is set at 4.5% or matches the first mortgage rate (whichever is lower). No mortgage insurance required. No prepayment penalty. Designed to help low- and moderate-income borrowers (up to 130% AMI) qualify for a home with only 3% down.
  • Funding comes from Nonprofit, Foundation, and Private.

How much assistance does it provide?

Down Payment Assistance Loan (DPAL) Program offers up to $125,000 in assistance.

  • Buyer contribution: Minimum 3% down payment from borrower.
  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Down Payment Assistance Loan (DPAL) Program is a repayable second loan and is repaid under the terms set by the administering agency.

  • Repayment is triggered by Monthly amortizing payments over 30 years and due at sale, payoff, refinance, or non-occupancy.
  • The assistance is recorded in 2nd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Down Payment Assistance Loan (DPAL) Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • On credit: Mid-FICO of 700 minimum
  • A completed homebuyer education course, through Hawaii HomeOwnership Center (HHOC) - approximately 9 hours of homebuyer education (live or online) plus one coaching session required
  • Residency: Property must be located in the State of Hawaii and used as borrower's primary residence; yearly occupancy affidavit required
  • Citizenship or immigration status: U.S. citizen or U.S. permanent resident (per first-mortgage product overlays)
  • First-time homebuyer (no ownership of primary residence in past 3 years). Mid-FICO of at least 700 required. Must complete HHOC homebuyer education (~9 hours) and a coaching session with the Hawaii HomeOwnership Center. HHOC Mortgage must originate a 3%-minimum-down first mortgage. Property must be primary residence; yearly occupancy affidavit required. If borrower puts no more than 5% down, purchase price cannot exceed $500,000.

The program excludes

  • Manufactured homes
  • Households above 130% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Down Payment Assistance Loan (DPAL) Program limits household income to 130% of the area median income, which varies by county and household size.

  • Household income up to 130% of HUD Area Median Income (AMI) for the county where the property is located.
  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Down Payment Assistance Loan (DPAL) Program caps the purchase price as follows: If borrower puts no more than 5% down, the home must not exceed program maximum of $500,000.

  • Eligible property types include Single-family detached, condominium, townhouse - principal residence only.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

Down Payment Assistance Loan (DPAL) Program serves buyers purchasing in Statewide, Hawaii.

How do you apply?

Applications for Down Payment Assistance Loan (DPAL) Program go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Hawaii HomeOwnership Center (HHOC) - approximately 9 hours of homebuyer education (live or online) plus one coaching session required.

  2. Contact the administering agency to reserve funds

    Funds are reserved through Funds reserved by HHOC Mortgage Loan Officer once borrower enters into a purchase contract. Funds may be limited; borrowers should communicate with HHOC Mortgage Loan Officer before submitting an offer., and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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