The Hale Kama‘āina Mortgage Program is one of the most powerful tools available to first-time home buyers on O‘ahu. Here’s everything you need to know — and how our team can help you put it to work.
🏘 What Is the Hale Kama‘āina Mortgage Program?
The Hale Kama‘āina Mortgage Program is a state-backed mortgage finance program from the Hawai‘i Housing Finance and Development Corporation (HHFDC), designed to help first-time home buyers in Hawai‘i achieve affordable homeownership.
It offers two key benefits to eligible buyers:
A 30-year fixed-rate mortgage at a competitive interest rate (targeted to be at least 50 basis points below market)
An optional 4% down payment assistance loan (Second Mortgage Loan) for qualifying buyers
For many local buyers on O‘ahu, this program can be the difference between continuing to rent and finally owning a home.
💰 How the Program Works
The Main Mortgage Loan
30-year fixed-rate mortgage
Interest rate targeted at 50+ basis points below market (actual rate based on the bond rate at the time of sale)
Funded through tax-exempt bond proceeds — that’s how HHFDC is able to offer the below-market rate
The Down Payment Assistance Loan (Optional Second Mortgage)
4% of the sales price available toward your down payment
Borrower must contribute a minimum of 5% of the sales price toward the purchase
Accrues simple interest at just 1% per year
No periodic payments required — becomes due in full upon loan maturity, sale, refinance, or other qualifying event
Can be prepaid at any time without penalty
✅ Who Qualifies?
To be eligible for the Program, you must meet all of the following criteria:
First-time home buyer — defined as someone who has not owned and occupied a property as their principal residence for at least three years from the date of application (exceptions may apply for veterans or purchases in targeted areas)
Household income within program limits (see below)
Purchase price within program limits (see below)
At least 18 years old, a Hawai‘i resident, and a U.S. citizen or resident alien
Received a Recapture Tax Notice
Completed homeownership counseling through a HUD-certified housing counseling agency
Financing a property that will be your principal residence
For the Second Mortgage Loan only: you cannot own any other residential property in the State (fee simple or leasehold), and you cannot have previously received a down payment loan from an HHFDC program.
🏘 What Kind of Property Can You Buy?
The Program covers a wide range of properties — meaning your options on O‘ahu are actually quite broad:
New or existing single-family residences
Townhomes
Planned Unit Developments (PUDs)
Condominiums
The property must:
Be located within the State of Hawai‘i
Fall within the Program’s purchase price limits
Have a remaining useful life of at least 30 years
Be occupied as your principal residence within 60 days of loan closing
Leasehold properties: the remaining lease term must be at least 35 years, with lease rent fixed for at least 10 years from the date of the loan.
📍 O‘ahu (Honolulu County) Income & Purchase Price Limits
Here’s what matters most for buyers on O‘ahu:
Honolulu County Household Income Limits
Household Size
Non-Targeted Area
Targeted Area
1–2 person household
$152,000
$182,400
3+ person household
$174,800
$212,800
Honolulu County Purchase Price Limits
Area Type
Maximum Purchase Price
Non-Targeted Area
$809,458
Targeted Area
$989,337
“Targeted areas” are federally designated economically disadvantaged census tracts where income and purchase price limits are higher to expand buyer access. Want to know if a specific neighborhood or property qualifies as a targeted area? Ask us — we’re happy to help you check.
🤝 How Our Team Can Help
The Hale Kama‘āina program can be a game-changer — but the process has moving parts: qualifying lenders, HUD-certified counseling, eligibility documentation, and finding properties that fit within the price limits.
That’s where we come in. As a top-performing team at REMAX Hawaii West O‘ahu, we help O‘ahu buyers:
Identify whether you’re likely to qualify before you invest time in the process
Connect with participating lenders who originate Hale Kama‘āina loans
Find homes within the purchase price limits in neighborhoods you actually want to live in
Navigate HHFDC affordable housing units, new construction releases, and resale opportunities that pair well with this program
Coordinate with your lender, counselor, and the seller’s side to keep your transaction moving smoothly
You must intend to occupy the home within 60 days of closing and remain an owner-occupant for the life of the loan (or until it’s paid off). This provision is strictly enforced. Violation may cause the entire loan balance to become immediately due. Hardship waivers may be available in limited cases.
Recapture Tax
Because the Program is funded with tax-exempt bonds, a federal “recapture” may apply if you sell within the first 9 years and your income increases above program limits by at least 5% year-over-year and you recognize a gain on the sale. All three conditions must be met for recapture to apply. Consult a tax advisor for guidance.
What the Program Can't Be Used For
Refinancing existing mortgages
Converting agreements of sale
Purchasing fee simple title to leasehold properties
Properties where more than 15% of the area is used in a trade or business
Good news: Shared appreciation and buyback requirements do not apply to this Program.
📊 Limits for Other Hawai‘i Counties
If you’re considering a purchase on a Neighbor Island, here are the limits for the other counties.
Affordable homeownership in Hawai‘i is possible — and the Hale Kama‘āina Mortgage Program may be exactly the door that opens it. Whether you’re still in the early research phase or ready to start touring homes, we’d love to help.
Interested in the Hale Kama‘āina Program?
Find out if you qualify, get matched with a participating lender, and start touring homes within the program’s price limits — or just ask us anything.
Joe Castaneda (R) RB-23007 · REMAX Hawaii West Oahu
For official program details, visit the HHFDC website or call HHFDC at (808) 587-0578. Program limits and terms are subject to change. Last updated by HHFDC: 3/9/2026.