Down payment assistance in Hawaii
Hawaii's primary statewide down payment assistance program, run by Hawaii Housing Finance and Development Corporation. Numbers and eligibility reflect the program's published 2025 guidelines.
Mortgage Credit Certificate (MCC)
Deferred loan- Maximum assistance
- 20% federal tax credit on annual mortgage interest (effectively reduces tax bill)
- Income limit
- Up to $122,400 (1-2 person, Honolulu) - varies by county and family size
- Home price limit
- Up to $773,400 (Honolulu); varies by county
- First-time buyer
- Required
- Eligible loan types
- FHA, VA, USDA, Conventional
- •MCC is a tax credit, not a loan - reduces federal income tax owed each year.
- •Active for the life of the loan if you keep the home as your primary residence.
How Hawaii DPA fits into your purchase
Down payment assistance reduces the cash you need at the closing table. Hawaii's Mortgage Credit Certificate (MCC) pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.
Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.
Common questions
Hawaii's primary statewide DPA is Mortgage Credit Certificate (MCC) from Hawaii Housing Finance and Development Corporation. 20% federal tax credit on annual mortgage interest (effectively reduces tax bill). Many Hawaii cities and counties also run additional DPA layered on top.
Yes. The Mortgage Credit Certificate (MCC) requires that you have not owned a primary residence in the past 3 years. Veterans and target-area buyers are sometimes exempt.
Yes. Mortgage Credit Certificate (MCC) works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.
Usually no. Deferred and forgivable loans typically have no monthly payment, so most lenders do not include them in your DTI calculation.
Deferred and second-mortgage DPAs are generally repaid in full when you sell, refinance, or pay off the first mortgage.