Honolulu Down Payment Loan Program
For many Oʻahu buyers, the down payment — not the monthly mortgage — is the real hurdle to homeownership. The City and County of Honolulu’s Down Payment Loan Program offers a zero-interest loan of up to $40,000 to help income-qualified families clear it. Here’s how it works and how our team can help.
🏙 What Is the Down Payment Loan Program?
The Down Payment Loan Program (DPL) is run by the City and County of Honolulu’s Department of Community Services, using federal HOME Investment Partnership funds from the U.S. Department of Housing and Urban Development (HUD).
It provides a zero-interest loan to qualified low- and moderate-income families to help cover the down payment on a home purchase. Because it’s a true 0% loan with no fees, it’s one of the most affordable forms of down payment help available on Oʻahu — and it can pair with your primary mortgage.
💰 Key Program Details
- Loan amount: up to $40,000
- Interest rate: 0% — zero interest
- Loan fees: none
- Repayment: amortized over a 20-year term — for the full $40,000 loan, that works out to about $166.67 per month
- Funding: loans are made first-come, first-served, subject to the availability of funds
✅ Who Qualifies?
To be eligible, you must:
- Not currently own a primary residential property
- Have an annual household income at or below the limits for your household size (shown below)
Maximum Annual Household Income
| Household Size | Maximum Annual Income |
|---|---|
| 1 person | $86,250 |
| 2 people | $98,600 |
| 3 people | $110,900 |
| 4 people | $123,200 |
| 5 people | $133,100 |
| 6 people | $142,950 |
| 7 people | $152,800 |
| 8 people | $162,650 |
| 9 people | $172,480 |
| 10 people | $182,336 |
Income limits are subject to periodic revision — confirm the current figures with the City or your lender before applying.
🏠 What Kind of Property Can You Buy?
The home you purchase must:
- Be a legally permitted structure
- Pass City inspection
- Meet applicable federal requirements, including lead-based paint rules for homes built before 1978 and an environmental review
📋 Other Requirements
Homebuyer Education
Applicants must complete a City-approved homeowner education course before the loan is approved.
Owner-Occupancy
You must occupy the property for the life of the loan.
Repayment on Sale or Transfer
If you sell or transfer the property during the loan term, the City loan must be paid in full, adjusted based on an annual occupancy credit. The City can walk you through exactly how that calculation works for your situation.
📝 How to Apply
- Talk to your first-mortgage lender. Let them know you’d like to apply for the City’s Down Payment Loan Program, and get conditional approval on your first mortgage.
- Your lender submits the packet. They’ll send your loan packet to the City for approval.
🤝 How Our Team Can Help
Pairing a City down payment loan with your primary mortgage takes some coordination — income eligibility, a home that passes City inspection, the education course, and timing between your lender and the City. That’s where we come in.
As a top-performing team at REMAX Hawaii West Oʻahu, we help Oʻahu buyers:
- Figure out whether you’re likely income-eligible before you invest time
- Connect with lenders experienced with the City’s program
- Find homes that meet the program’s requirements and can pass City inspection
- Coordinate timing between your lender, the City, and the seller to keep things moving
🏠 Ready to Take the Next Step?
If a $40,000 zero-interest boost could be the difference between renting and owning, let’s find out if you qualify and start looking at homes that fit the program.
Interested in the City’s Down Payment Loan?
Find out if you qualify, get matched with a lender who knows the program, and start touring homes that fit — or just ask us anything.
Or call or text (808) 351-8394 · TeamCastaneda@REMAXHawaii.com
Joe Castaneda (R) RB-23007 · REMAX Hawaii West Oahu
This program is administered by the City and County of Honolulu, Department of Community Services. For official details, applications, and current income limits, visit honolulu.gov/dcs/cad, call (808) 768-7076, or visit the Rehabilitation Loan Branch at 51 Merchant Street, 1st Floor, Honolulu, HI 96813. Loan amount, income limits, and terms are subject to periodic revision. Brochure last revised 6/1/2026. This page is for general information only and is not a commitment to lend.