HHFDC Services for Residents
The Hawaiʻi Housing Finance and Development Corporation (HHFDC) provides supportive financing pathways, mortgage tax credits, and stabilization relief resources to help Hawaiʻi residents achieve and sustain successful long-term homeownership.
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Homebuyers Programs Overview
The HHFDC Homeowners Programs Overview serves as a central resource hub for residents to explore state-supported financing pathways and essential stabilization relief. This page details specific incentive programs designed to lower purchase barriers—such as equity support and mortgage assistance—while outlining the core eligibility criteria and process steps required to qualify for state-subsidized homeownership opportunities.
Requirements
for interested persons wanting to be a homebuyer
Purchaser Eligibility
- US Citizen/Legal Resident
- Age 18+
- Hawaii Domicile
- Income Qualified
- No Majority Interest in Real Estate
Process Roadmap
Available Pathways to Homeownership
We offer a variety of state-backed financing and ownership models specifically designed to make purchasing a home in Hawaiʻi more attainable. Whether you are looking for down-payment support, lower mortgage rates, or alternative ownership structures, these programs are here to help you move from renting to owning your own primary residence.
| Available Program Pipeline | Detailed Program Description |
|---|---|
| Equity Pilot (DURF DEP) | A program helping qualified Hawaiʻi residents in shortage professions achieve homeownership. It offers a 0%, 30-year second mortgage where HHFDC buys a portion of the equity, reducing the buyer’s upfront loan amount. |
| Leasehold Program | This approach removes the cost of the land from your purchase price. You pay for the construction of the home itself, while the state retains ownership of the land. You receive a long-term, 99-year ground lease, making homeownership attainable by removing the high cost of fee-simple land in Hawaiʻi. |
| Hale Kamaʻāina Program | A direct mortgage assistance program that uses tax-exempt bonds to lower your interest rate. By securing a 30-year fixed-rate mortgage significantly lower than current private bank offerings, this program helps families qualify for a home that would otherwise be out of reach. |
| Mortgage Credit Cert (MCC) | This is a federal tax credit that puts cash back in your pocket. It allows qualified first-time buyers to convert a portion of their annual mortgage interest into a dollar-for-dollar reduction of their federal income tax bill, effectively increasing your monthly take-home pay to help maintain your mortgage. |
HHFDC Affordable Housing FAQs for Homebuyers
Am I eligible if I already own property?
Typically, applicants must not hold a majority interest (over 50%) in any residential real estate. HHFDC requirements generally stipulate that you must not have owned a home for at least one year prior to your application date. Always review the specific developer’s brochure, as eligibility can vary by project.
How does income growth affect my standing after I buy?
Your income is only evaluated during the initial eligibility and verification phase. If your earnings increase after you have officially closed on the property, your ownership status remains unaffected. You are not required to vacate the property if your income eventually exceeds the original area median income (AMI) limits.
Am I allowed to rent or lease my unit to others?
No. These units are designated strictly for owner-occupancy. Renting out any portion of your home, utilizing it for short-term vacation stays (like Airbnb), or subletting is a direct violation of your recorded deed restrictions and may result in legal or financial penalties, including the repurchase of the unit by the state.
What if I need to relocate before the restriction period expires?
Should you need to sell during the mandatory buyback period (often 10 years), the state holds the Right of First Refusal. This means HHFDC may elect to repurchase the home at the original sale price plus a set percentage of appreciation. If the state chooses not to repurchase, you may be permitted to sell to another HHFDC-qualified buyer.
What is the policy regarding Shared Appreciation Equity (SAE)?
Once the initial buyback period has concluded, you are free to sell on the open market. However, you are obligated to settle the Shared Appreciation Equity (SAE) requirement. This involves paying a predetermined percentage of the home’s net appreciation back to HHFDC, ensuring the state can continue reinvesting in future affordable housing opportunities. Learn more here.
Are affordable units built to different standards than market-rate homes?
No. In HHFDC-assisted communities, such as condo towers, affordable units are integrated into the overall development. You will usually have identical access to building amenities, security features, and community common areas as your neighbors in market-rate units. Any differences are usually limited to specific interior finishing packages.
What is the anticipated timeframe from application to move-in (for a brand new unit)?
For new construction projects, the journey from application to closing generally spans 1 to 4 years. The initial lottery and/or eligibility verification phase takes several months, followed by a wait period while the building is finalized. Projects currently under construction may offer quicker move-in dates compared to those in the early pre-sale stages.
