What is 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.
How much assistance does it provide?
Hale Kamaaina Mortgage Program - Down Payment Assistance (Second Mortgage Loan) provides assistance worth 4% of the purchase price, as set by the program.
- Award tiers: DPA second mortgage of up to 4% of the first mortgage loan amount, available with a 0.25% rate premium on the applicable first-mortgage rate.
- Amounts are the program's published maximums, not an offer — Hawaii Housing Finance & Development Corporation (HHFDC) determines any individual award.
Do you have to pay it back?
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.
Who qualifies?
Hale Kamaaina Mortgage Program - Down Payment Assistance (Second Mortgage Loan) is open to first-time homebuyers and buyers who will live in the home as their primary residence.
The program requires
- ✓First-time homebuyer — with exceptions: 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.
- ✓The home is occupied as a primary residence
- ✓On credit: Minimum FICO 660 (per current rate sheet for both government and conventional offerings).
- ✓A completed homebuyer education course, through Homeownership counseling program through a HUD-approved housing counseling agency; required for all persons on title (not cosigners).
- ✓Residency: 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.
The program excludes
- ✕Purchases above the $809,458 price cap
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?
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.
What kind of home can it be used for?
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.
Is there eligibility for specific groups?
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.
Where does it apply?
Hale Kamaaina Mortgage Program - Down Payment Assistance (Second Mortgage Loan) serves buyers 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.
How do you apply?
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.
- 1
Take a homebuyer education course
Required by the program, through Homeownership counseling program through a HUD-approved housing counseling agency; required for all persons on title (not cosigners)..
- 2
Contact Hawaii Housing Finance & Development Corporation (HHFDC) to reserve funds
Funds are reserved through Lender reserves funds via eHousingPlus eHPortal; 60 days from reservation to loan purchase., 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.