Homebuyer Loan Program

Homebuyer Loan Program is a grant for homebuyers in Kauai County, Hawaii. The Kauai County Housing Agency Homebuyer Loan Program provides low-cost loans to first-time homebuyers purchasing on the island of Kauai who meet KMHI (Kauai Median Household Income) tiered eligibility. Structure: a Primary Loan (max $450,000, 30-year amortization with 15-year balloon) at an interest rate based on borrower's KMHI tier (4.75%-7.50%), plus an optional GAP Mortgage (max $150,000). Applicants must be first-time homebuyers, U.S. citizens or resident aliens, 18+, and complete a Homebuyer Education program. Two-loan structure for first-time homebuyers in Kauai County: (1) Primary Loan up to $450,000 at a low interest rate (based on KMHI tier - rates 4.75%-7.50%), 30-year amortization with 15-year balloon. PLUS (2) GAP / secondary loan up to $150,000. Interest rates set by KMHI tier. Designed to make homeownership accessible at multiple income tiers up to ~140% AMI on Kauai - the most expensive island after Honolulu. Funding comes from Local, State, Federal, HOME, and CDBG.

Homebuyer Loan Program is structured as a grant, so it is not repaid. Repayment is triggered by Monthly amortizing payments over 30 years with 15-year balloon on primary loan and GAP per terms. The assistance is recorded in 1st Lien (Primary) / 2nd Lien (GAP) position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Homebuyer Loan Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. On credit, the program states: Per Kauai County Housing Agency underwriting and partner-lender overlays. A homebuyer education course is required, through Kauai County-approved Homebuyer Education program; must be completed before purchase. Residency requirement: Property must be located in Kauai County and used as borrower's primary residence. Citizenship or immigration status: U.S. citizen or resident alien. Must be U.S. citizen or resident alien. Must be 18 years or older. Must be first-time homebuyer (no majority interest in a principal residence or real estate in past 3 years). Must complete Homebuyer Education program. Income tiered by KMHI (Kauai Median Household Income) sliding scale. Property must be in Kauai County. Primary loan has 15-year balloon.

Homebuyer Loan Program limits household income to 140% of the area median income, which varies by county and household size. Tiered by KMHI (Kauai Median Household Income) by family size. 2024 Kauai 100% KMHI = $107,100 (4-person); 2025 KMHI = $102,200 (4-person). Seed range $74,350-$140,200 reflects ~80% to 140% KMHI band. Sales-price tier brackets at 4.75%-7.50% interest, with the lowest rate for lowest-income tier. 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.

Homebuyer Loan Program caps the purchase price at $586,550. Eligible property types include Single-family detached, condominium, townhouse - primary residence in Kauai County. New construction is eligible. Manufactured homes are not eligible.

Homebuyer Loan Program serves homebuyers purchasing in Kauai County, Hawaii.

Applications for Homebuyer Loan Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Direct application to Kauai County Housing Agency Homebuyer Program. 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.