• Programs are available to first-time home buyers in Hawaii.beach house turret. image by mdb from Fotolia.com
  
  Hawaii has one of the highest costs of living in the United States and it continues to rise. In Hawaii, homes can be purchased as fee-simple or leasehold. With rising prices and an economy dependent on tourism, it gets harder each year for residents to achieve the American dream of owning a home; however, programs such as Hula Mae, USDA and FHA loans are available to first time home buyers in Hawaii.
  
  

Hula Mae Program

• The Hula Mae Program is a mortgage program is available to Hawaii residents who are U.S. citizens over the age of 18. Applicants cannot be previous recipients of the program and the home must be owner-occupied until the loan is repaid. The loan is available for new home buyers or buyers who have not owned any land or property within the last three years. Benefits to the Hula Mae Program include first time home buyer assistance and lower interest rates than conventional loans. Hula Mae loans are available through participating lenders throughout state of Hawaii.
  
  

USDA Home Loan

• USDA home loans are available to low-income families in rural areas of Hawaii. The USDA Guaranteed Loan program offers 100% financing with no down payment or mortgage insurance required. The reason for this program is to expand home ownership in rural areas. This loan is offered to homes listed in rural areas only. As the population of an area increases, the number of available loans will decrease and it is not available in all cities. There is a USDA office on Oahu, Kauai, Maui and the Big Island. Check with your local office to confirm the availability of loans and qualified areas.
  
  

FHA Loans

• The Federal Housing Administration (FHA) approves new homeowners with a limited down payment. Credit scores determine how much money is required for a down payment. New homeowners can put as little as 3% down. According to the FHA, a credit score below 580 requires a 10% down payment. Unlike other loans, the FHA allows gifted money to be used as a down payment. The FHA will pay lenders if borrowers default on their payments, but that cost is paid for by the borrower with 2.25% being required up front, before the loan is secured.