Mortgage in Hawaii
Long a popular tourist destination, Hawaii has become increasingly a place where Americans want to move. Its beautiful beaches, pristine waters, and rich cultural history are draws for new residents. However, Hawaii's real estate is expensive, with the average price for a single-family home at almost $900k . Even condos aren't cheap at an average of $455k. Therefore, if you're thinking of moving to this island paradise, you'll want to know what you're going to pay with our Hawaii mortgage calculator.
Hawaii Mortgage Calculator: See What You Can Afford in The Aloha State!
If you're thinking of moving to Hawaii, you should know that there are three types of mortgages available. Please note that you can only finance vacation homes through a conventional mortgage.
- Hawaii conventional mortgage: This mortgage type is the most common in Hawaii because of its flexibility. Due to the high home prices, many traditional loans in Hawaii will be non-conforming. Therefore, they'll require 20% down, a debt-to-income ratio of 43% or below, and a credit score above 700. If you buy property less than $822k (the conforming loan limit), you can have as little as 5% down, a debt-to-income ratio of 50%, and a credit score above 620.
- Hawaii FHA mortgage: Due to the high housing prices, FHA loans are a little less popular in Hawaii. Properties under approximately $720k (Honolulu) are eligible. If you can get a deal, these loans require as little as 3.5% down for credit scores above 580. If you have a credit score between 500 and 580, you'll need 10% down.
- Hawaii VA mortgage: For veterans, the VA mortgage is a fantastic way to live in the state. With as little as 0% down, no private mortgage insurance, and relaxed requirements, a VA mortgage can get you your Hawaii dream fast. You'll need a credit score of 660 or above to qualify.
The above three loan options are the best for those looking to move to Hawaii. However, one barrier is often the down payment. Fortunately, there are assistance programs that can help with that!
First-Time Homebuyers in Hawaii
The Hawaii HomeOwnership Center has some programs to help first-time homebuyers move to The Aloha State. Here are five you need to know.
Down Payment Assistance Loan Program
This program reduces the down payment to 5%. The structure is an 80% first mortgage, 15% second mortgage, and the remaining 5% is what you put down. The best part about this loan is that there is no mortgage insurance!
Eligibility Criteria: Income limits and purchase price maximums apply. These limitations vary by location. Borrowers must also complete education courses.
Down Payment and Closing Cost Assistance Program
This product is a 15-year deferred loan with no interest and no monthly payment. You can use these funds toward anything, including points to lower your interest rate. The maximum amount of this loan is $10,000.
Eligibility Criteria: Income must be below 120% area median income. Borrowers must take educational classes. Finally, the home must be the borrower's primary residence.
Honolulu Down Payment Loan Program
If you're planning on living in Honolulu, the city and county offer up to $40,000 in down payment assistance. These loans have a 20-year amortization period, but they are interest-free.
Eligibility Criteria: Borrowers must put up 5% of the purchase price and earn less than 80% of the area median income. Purchase price maximums also apply.
Mortgage Credit Tax Certificate
With this program, eligible homeowners can claim up to 20% of their mortgage interest as a non-refundable federal tax credit.
Eligibility Criteria: This program has income limitations, although those limitations are quite generous. For example, in Honolulu, families of 3 or more qualify for this deduction if they have up to $168k of household income.
Hawaii Mortgage Calculator: The Aloha State Awaits
With beautiful sunshine, pristine waters, and some of the best beaches, Hawaii is a dream destination for many. Thanks to some of these assistance programs, living on this island paradise is much easier to do!
