Overview
Hawaii's housing market offers opportunities for first-time buyers, with a median home price of approximately $850,000. The Hawaii Housing Finance and Development Corporation (HHFDC) provides the primary state-level assistance through mortgage programs and down payment assistance for qualifying buyers.
The Hula Mae First-Time Homebuyer Program is a hawaii housing finance and development corporation's key offering for first-time buyers, providing below-market 30-year fixed rate mortgage with mortgage insurance coverage. This program is designed to reduce the upfront cost barrier that prevents many qualified buyers from purchasing a home. Buyers must complete a HUD-approved homebuyer education course and work with an approved lender.
State Programs
Hula Mae First-Time Homebuyer Program
Below-market rate mortgageHHFDC Mortgage Credit Certificate (MCC)
Tax creditFederal Programs Available in Hawaii
These nationwide programs can be combined with Hawaii state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Hawaii
The HHFDC Mortgage Credit Certificate (MCC) extends additional support through federal tax credit of up to 20% of annual mortgage interest paid. Hawaii has the highest median home prices in the nation after California. The state income tax ranges from 1.40% to 11%. The Hula Mae program and MCC provide critical tax benefits for buyers navigating extreme housing costs.
Federal programs complement state offerings in Hawaii. FHA loans require just 3.5% down with flexible credit requirements. VA loans provide zero-down-payment financing for veterans and active-duty military, particularly relevant near Joint Base Pearl Harbor-Hickam, Schofield Barracks. USDA loans offer zero-down-payment options in eligible rural areas, which cover significant portions of Hawaii.
Prospective buyers should compare all available options, as combining state and federal programs can dramatically reduce out-of-pocket costs. Working with a HUD-approved housing counselor can help navigate the application process and identify the best program combination for your situation.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: March 30, 2026.