Hale Kamaaina Mortgage Program - Down Payment Assistance (Second Mortgage Loan)

Hale Kamaaina Mortgage Program - Down Payment Assistance (Second Mortgage Loan) is a deferred second loan for homebuyers in Hawaii, administered by Hawaii Housing Finance & Development Corporation (HHFDC). The Hale Kamaaina Mortgage Program is HHFDC's flagship first-time homebuyer program offering competitive 30-year fixed-rate first mortgages (targeted at least 50 basis points below market) with an optional down payment assistance second mortgage. Qualifying borrowers may receive a DPA loan of up to 4% of the first mortgage amount, accruing simple interest at 1% per year with no monthly payments, due upon maturity, sale, or refinance. The program had $30 million available at launch. Down payment assistance up to 4% of first mortgage. 1% simple interest, no monthly payments. Deferred until sale, refinance, or maturity. No prepayment penalty. Pairs with below-market 30-year fixed first mortgage. Higher limits and FTHB waiver in targeted areas. Funding comes from Tax-exempt mortgage revenue bond proceeds.

Hale Kamaaina Mortgage Program - Down Payment Assistance (Second Mortgage Loan) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by Due in full upon first mortgage maturity, sale, refinance, or other qualifying event. The assistance is recorded in Second position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Hale Kamaaina Mortgage Program - Down Payment Assistance (Second Mortgage Loan) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time buyer = has not owned and occupied a principal residence for the past 3 years; exceptions may apply for Veterans or purchases in targeted areas. On credit, the program states: Minimum FICO 660 (per current rate sheet for both government and conventional offerings). A homebuyer education course is required, through Homeownership counseling program through a HUD-approved housing counseling agency; required for all persons on title (not cosigners). Residency requirement: Bona fide resident of Hawaii. Citizenship or immigration status: U.S. Citizen or Resident Alien. To receive the DPA second, borrower must contribute a minimum of 5% of the sales price, must not own any other residential property (fee simple or leasehold) in the State, and must not have previously received a down payment loan from any HHFDC program. Borrower must receive a Recapture Tax Notice. Min/max DPA dollar amount and exact min credit score for the DPA tier not separately stated beyond the 4% calculation and 660 FICO on the rate sheet; full program guidelines PDF (eHousingPlus, dated 04-08-2026) could not be retrieved.

Hale Kamaaina Mortgage Program - Down Payment Assistance (Second Mortgage Loan) sets its income limit as follows: Household income limits (2025, non-targeted / targeted) by county and household size: Hawaii $123,000 (1-2 person) / $141,450 (3+); targeted $147,600 / $172,200. Honolulu $152,000 / $174,800; targeted $182,400 / $212,800. Kalawao $133,080 / $155,260; targeted $147,600 / $172,200. Kauai $159,480 / $186,060 (no targeted tracts). Maui $161,520 / $188,440; targeted same. 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.

Hale Kamaaina Mortgage Program - Down Payment Assistance (Second Mortgage Loan) caps the purchase price at $809,458. Eligible property types include Single Family, Townhouse, PUD, and Condo. New construction is eligible.

Hale Kamaaina Mortgage Program - Down Payment Assistance (Second Mortgage Loan) names veterans among the groups it serves. Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Hale Kamaaina Mortgage Program - Down Payment Assistance (Second Mortgage Loan) serves homebuyers purchasing anywhere in Hawaii. The program targets specific areas: Federally designated targeted-area census tracts (economically disadvantaged) qualify for higher income and purchase price limits and waive the first-time buyer requirement. No targeted tracts exist in Kauai County.

Applications for Hale Kamaaina Mortgage Program - Down Payment Assistance (Second Mortgage Loan) go through Hawaii Housing Finance & Development Corporation (HHFDC), which publishes the current terms and the application steps on its own site. Funds are reserved through Lender reserves funds via eHousingPlus eHPortal; 60 days from reservation to loan purchase. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.