Home Loan Programs for Hawaii
Understanding Agency, Conventional, Government, and Non-Agency Options
We have prepared comprehensive definitions and illustrative charts to empower you with a deeper understanding of the intricate world of mortgage loans. Navigating the complexities of various loan options can be a daunting task, and our goal is to simplify this process for you.
In the following sections, you’ll find detailed explanations of key concepts, accompanied by visually informative charts that break down crucial information. Whether you’re delving into the nuances of Agency Loans, exploring Conventional and Government-backed options, or considering the flexibility of Non-Agency Loans such as Portfolio Loans, these resources are designed to be your go-to reference. Let us guide you through the intricacies of Conforming Conventional Loans, Jumbo Loans, and Government Loans, providing clarity on terms, limits, and categories.
Your journey to informed decision-making begins here, as we equip you with the knowledge needed to make confident choices in selecting the right mortgage program and terms.
Conforming Conventional, Government, and Portfolio Loans
What are Agency Loans?
Both Conventional and Government loans are considered Agency Loans because they are backed by one of the following government agencies:
Federal National Mortgage (Fannie Mae)
Federal Home Loan Mortgage Corp. (Freddie Mac)
Government National Mortgage Association (Ginnie Mae)
How does this impact my home loan options?
A Conforming Conventional Loan is one that is saleable to Fannie Mae or Freddie Mac with a loan amount up to the conforming limit. Once the loan amount exceeds the conforming limit, it becomes a Jumbo loan. Conforming Conventional loans are available in terms of 15-year and 30-year fixed and 5-year, 7-year, and 10-year Adjustable Rate Mortgages (ARMs).
Government Loans are saleable to Ginnie Mae and include the following loan categories: VA loans, FHA loans, and USDA loans. There is a variety of loan terms available for Government loans – inquire when you speak with your loan officer for more detailed information.
Non-Agency Loans, those loans that are not backed by Freddie, Fannie, or Ginnie, are called Portfolio Loans. These loans are available for financing when a loan scenario does not fit within the Agency guidelines. Your loan officer will be able to extend these loan programs in terms of 15-year and 30-year fixed and 1-year to 10-year Adjustable Rate Mortgages (ARMs).
Your loan officer will be able to guide you in selecting the loan program and term that is best for you.
Hawaii Loan Program Guides
The following guides will help you to determine the basic terms available for the various home loan programs available in Hawaii, and offer details for:
- Minimum Down Payment Percentage % of the loan amount
- Maximum Purchase Price calculated based on maximum loan amount and minimum down payment requirements
- And the corresponding Loan Program
Maximum Loan Amounts for Hawaii
2024 Conforming Conventional Loan Limits for Hawaii, all counties
| 1 Unit Property | 2 Unit Property | 3 Unit Property | 4 Unit Property |
|---|---|---|---|
| $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
2024 FHA Loan Limits for Hawaii
| County | 1 Unit Property | 2 Unit Property | 3 Unit Property | 4 Unit Property |
|---|---|---|---|---|
| Hawaii | $517,500 | $662,500 | $800,800 | $995,200 |
| Urban Honolulu | $779,700 | $998,150 | $1,206,550 | $1,499,450 |
| Kalawao (Non-Metro) | $1,000,500 | $1,280,850 | $1,548,250 | $1,924,100 |
| Kauai | $1,029,250 | $1,317,650 | $1,592,700 | $1,979,350 |
| Maui | $1,000,500 | $1,280,850 | $1,548,250 | $1,924,100 |
2024 VA Loan Limits for Hawaii
The VA removed loan limits for veteran home buyers who have their full entitlement available. This means that qualified veterans will not be limited on their purchase price with 0% down payment based on county loan limits. Pacific Home Loans offers loans to qualified veterans with 0% down up to $2,500,000, and in some cases, even higher.
For veterans with partial or no entitlement remaining, they may still apply for a home loan but will most likely be required to provide a down payment. This amount is based on a calculation utilizing the remaining entitlement, the county conforming loan limit, and the purchase price. Your loan officer can assist you in calculating exactly how much down payment you may need for your home purchase scenario.
Primary Residence Hawaii Loan Programs
The figures in the chart below identify the minimum down payment percentage and a maximum purchase price are based on the 2024 Loan Limits as applicable for Conforming Hawaii 1 Unit properties, FHA Loans, Portfolio loans, etc.
| Minimum Down Payment % | Maximum Purchase Price | Loan Program |
|---|---|---|
| 0% | $2,500,000 | VA Loan with full Entitlement |
| 3% | $1,185,387 | Fannie Mae HomeReady® |
| 3% | $1,185,387 | Freddie Mac Home Possible® |
| 3.5% | $536,269 | FHA Loan – Hawaii County |
| 3.5% | $807,979 | FHA Loan – Urban Honolulu County |
| 3.5% | $1,036,787 | FHA Loan – Kalawao County |
| 3.5% | $1,062,435 | FHA Loan – Kauai County |
| 3.5% | $1,036,787 | FHA Loan – Maui County |
| 5% | $1,210,342 | Conventional Conforming |
| 10% | $1,666,667 | Portfolio No MI |
| 15% | $3,529,411 | Non-Agency, PHL Funded |
| 20% | $3,750,000 | Non-Agency, PHL Funded |
| 20% | $3,750,000 | Portfolio Jumbo |
| 25% | $4,000,000 | Portfolio Jumbo |
| 30% | $7,142,858 | Portfolio Jumbo |
Second Homes Hawaii Loan Programs
The figures in the chart below are based on the 2024 Conforming Loan Limit for Hawaii of a 1 Unit property.
A “second home” refers to a property that an individual or family owns, separate from their primary residence. This secondary property is often used for recreational purposes, vacations, or as an investment. Unlike a primary residence, a second home is not the main place of residence and is typically occupied for a portion of the year. It is distinct from an investment property, which is primarily purchased for rental income or capital appreciation.
| Minimum Down Payment % | Maximum Purchase Price | Loan Program |
|---|---|---|
| 10% | $1,277,583 | Conventional |
| 15% | $3,529,411 | Non-Agency, PHL Funded |
| 20% | $3,750,000 | Non-Agency, PHL Funded |
| 25% | $6,666,667 | Portfolio Jumbo |
Investment Properties Hawaii Loan Programs
The figures in the chart below are based on the 2024 Conforming Loan Limit for Hawaii of a 1 Unit property.
| Minimum Down Payment % | Maximum Purchase Price | Loan Program |
|---|---|---|
| 20% | $1,437,281 | Non-Agency, PHL Funded |
| 25% | $4,000,000 | Portfolio Jumbo |
| 30% | $1,642,607 | Non-Agency, PHL Funded |
| 35% | $7,695,000 | Portfolio Jumbo |
