Hawaii · State guide
How to buy a house in Hawaii
The most expensive state to buy in — but with the lowest property taxes in the country and a high loan limit that keeps more homes out of jumbo territory. Two things make Hawaii unlike anywhere else: leasehold land and a condo-insurance crisis. Here is the playbook.
Last updated June 2026
Why Hawaii is different
Buying a house in Hawaii, the short version
The federal process is the same everywhere — read the complete guide to buying a house for the eight universal steps — but Hawaii is the most unusual market in the country, and getting a few local details wrong can cost you tens of thousands of dollars.
The basics: Hawaii is the priciest state (a statewide median around $820,000, with Oahu, Maui, and Kauai well past that and the Big Island the most affordable), yet it has the lowest property taxes in the U.S. (about 0.28% for owner-occupants) and a high conforming loan limit of $1,249,125 in every county, so more homes qualify for a regular mortgage. Closings run through a neutral escrow company — no attorney required — and the state recently launched a below-market loan program (Hale Kamaaina) for first-time local buyers.
Two things to understand before you fall in love with a listing: many properties are leasehold (you own the building but lease the land), which changes financing and long-term value, and Hawaii is in the middle of a serious condo-insurance crisis that can make some buildings hard to finance. Use the 50-state hub to compare other states.
The market
What homes cost in Hawaii
The highest prices in the nation — but they vary enormously island to island.
The statewide median home value is roughly $820,000, and on Oahu — where 70% of residents live — single-family homes move fast (a median of about 21 days on market and ~99% of asking in early 2026). Each island is really its own market:
Median prices by island (2026)
Big Island (Hawaii County) ~$450,000–$500,000 (the most affordable) · Oahu single-family ~$1.1M, condos ~$480,000 · Kauai ~$940,000 · Maui single-family ~$1.0M–$1.3M. Maui’s market is still working through the aftermath of the 2023 Lahaina fire, which constrained west-side inventory and pushed up rebuilding and insurance costs.
Down payment & rate help
Hawaii homebuyer programs
Most run through approved lenders or a nonprofit counseling center, and most require homebuyer education and Hawaii residency.
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Hale Kamaaina Mortgage (the new state program)
Launched by HHFDC for first-time local buyers: a 30-year fixed loan at below-market rates (recently around 5.4% for government loans) with lower fees and optional down payment assistance.
You must be a bona fide Hawaii resident buying a primary residence and complete homeownership counseling. Income limits are generous — many families earning over $200,000 still qualify.
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Hale Kamaaina down payment assistance
Paired with the loan above, a low-interest assistance loan can lower your required down payment to as little as 5%, and the first buyers to close receive up to $3,000 toward closing costs and reserves.
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Hawaii HomeOwnership Center (HHOC)
This nonprofit offers a 3%-down mortgage plus a down payment assistance loan up to $75,000 (which avoids mortgage insurance) and a deferred closing-cost loan (0% interest, no monthly payment).
Requires a higher credit score (around 700) and about 9 hours of homebuyer education plus counseling.
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County help
Counties add their own programs: the City & County of Honolulu offers a down payment loan up to $40,000 (0% interest, no fees), and Kauai and Maui counties run loan programs for income-eligible local first-time buyers.
A few notes
Most programs require first-time-buyer status, Hawaii residency, and a HUD-approved homebuyer course. The older Hula Mae mortgage and the Mortgage Credit Certificate have been largely inactive — Hale Kamaaina is the state’s revived program. Don’t forget the federal options either: VA loans (0% down) are heavily used given Hawaii’s large military community, and USDA loans (0% down) work in eligible rural areas, especially on the Big Island.
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Property taxes
The lowest property taxes in the country
Here’s the surprise: despite the highest home prices in the U.S., Hawaii has the lowest effective property tax rate — around 0.28% for owner-occupants. There’s no state property tax; each of the four counties sets its own rates and exemptions, and homes are assessed at full market value. Because of the generous owner-occupant rates and exemptions, the actual dollar bill is moderate — typically $1,500–$2,700 a year. On Oahu, the owner-occupied rate is just $3.50 per $1,000, with a home exemption of $120,000 (rising to $160,000 at age 65). Maui has the lowest effective rate in the entire country, and the Big Island and Kauai offer large, age-tiered senior exemptions.
Claim the home exemption — and mind the owner-occupant rules
The single most important step is filing for your county’s home exemption (on Oahu, by September 30). It doesn’t just lower your taxable value — it also moves you into the much cheaper owner-occupied tax class. Second homes and investment properties pay far more: on Oahu, a residential property over $1 million without a home exemption (“Residential A”) is taxed at $4.00–$11.40 per $1,000 — several times the owner-occupant rate. (Note: Hawaii has no sales tax, but a 4.5% General Excise Tax applies to most goods and services, including at closing.)
Closing & costs
Closing on a home in Hawaii
Hawaii is an escrow/title state: a neutral escrow company runs the closing — holding funds, clearing title, and recording the deed — and an attorney is optional. A termite inspection is standard (often required), and most deals use the Hawaii Association of Realtors contract. Buyer closing costs typically run 2%–4% of the price, and a purchase usually closes in about 45–60 days.
Hawaii charges a conveyance (transfer) tax, but the seller pays it. It’s graduated by price and by whether the buyer will live there — from about 0.1% on a sub-$600,000 owner-occupied home up to 1.25% on luxury or non-owner-occupied property (roughly $4,750 on a $950,000 owner-occupied home). One thing buyers must know: if the seller is a non-resident, you (the buyer) are required to withhold 7.25% of the price (HARPTA), plus 15% under federal FIRPTA — escrow handles the mechanics, but plan for it. On financing, the 2026 conforming limit is the high-cost $1,249,125 in every county, and FHA limits are elevated too — from about $586,500 on the Big Island up to roughly $1,299,500 on Maui (confirm your county with HUD).
The big one: leasehold vs. fee simple
This is the most important distinction in Hawaii. Fee simple means you own the land and the building — the normal U.S. model. Leasehold means you own the building but lease the land (often from an estate or trust), with monthly lease rent and a lease that expires on a set date. Leasehold listings look cheaper, but as the lease term shrinks the value drops and lenders stop financing it — many conventional lenders won’t touch a lease under 30 years, and VA/FHA are stricter still.
Always confirm fee simple vs. leasehold before you make an offer — some of Oahu’s most attractive condos are leasehold. Hawaii also requires sellers to provide a disclosure statement of known material facts, but always get your own inspections (including the termite report).
Insurance & risks
Insuring a Hawaii home
Standard home insurance in Hawaii has historically been affordable, but two things need separate attention. Hurricane coverage is usually a separate policy — Hawaii’s hurricane risk is lower than the mainland Gulf or Atlantic coasts, but it’s real (Hurricane Iniki devastated Kauai in 1992). And flood is separate too (NFIP in FEMA zones). On the Big Island, properties in the higher lava-hazard zones can be difficult or impossible to insure — check the lava-zone map before buying there.
Buying a condo? Check the building’s insurance first
Hawaii is in a genuine condo-insurance crisis. Over the past year, many condo associations’ master hurricane policies jumped 300%–600% (some far more), and hundreds of buildings now carry less than the 100% replacement coverage that Fannie Mae and Freddie Mac require. A building that’s underinsured can become hard or impossible to get a mortgage on — and owners face big special assessments and rising association fees.
Before buying a condo, review the AOAO’s master insurance, reserve funds, and any special assessments with your agent and lender. A 2025 state law (Act 296) reactivated the Hawaii Hurricane Relief Fund and a repair-loan program to help, but it isn’t a cure-all — so do the diligence.
Wherever you buy
The steps that work the same in Hawaii
Hawaii sets the local rules, but these parts of buying are the same everywhere.
Quick answers
Buying a house in Hawaii: common questions
How much money do you need to buy a house in Hawaii?
With a conventional loan you need 3% down, FHA 3.5%, and VA or USDA can be 0%. But prices are high — on a typical ~$820,000 home, 3% is about $25,000 plus 2%–4% in closing costs. The new Hale Kamaaina program can lower the down payment to about 5% and help with costs. See how much you really need →
Does Hawaii have down payment assistance?
Yes. The state’s new Hale Kamaaina program offers a below-market loan plus down payment help, the nonprofit Hawaii HomeOwnership Center offers loans up to $75,000, and the City & County of Honolulu offers a $40,000 down payment loan. See assistance programs →
Does Hawaii have a transfer tax?
Yes — a conveyance tax, but the seller pays it. It’s graduated from about 0.1% to 1.25% based on price and whether the buyer will live in the home (roughly $4,750 on a $950,000 owner-occupied home).
Are property taxes high in Hawaii?
No — they’re the lowest in the country (about 0.28% for owner-occupants). Because home prices are so high, the dollar bill is still moderate (around $1,500–$2,700). Be sure to file your county’s home exemption to get the low owner-occupied rate.
What’s the difference between leasehold and fee simple?
Fee simple means you own the land and the building. Leasehold means you own the building but lease the land, with a lease that expires — cheaper up front, but lenders won’t finance a short remaining lease and the value drops as it runs out. Always confirm which you’re buying before making an offer.
Is Hawaii an attorney state for closings?
No. A neutral escrow company handles the closing — holding funds, clearing title, and recording the deed. An attorney is optional.
Do I need hurricane insurance in Hawaii?
Usually yes, and it’s typically a separate policy from standard home insurance. Hawaii’s hurricane risk is lower than the mainland but real, and condo buildings in particular are facing a serious insurance-cost crisis right now.
What’s the catch with buying a condo in Hawaii?
Many condo buildings’ master hurricane insurance has spiked or fallen short of the 100% replacement coverage that lenders require, which can make a building hard to finance and lead to big special assessments. Review the association’s insurance, reserves, and assessments before buying.
What’s the conforming loan limit in Hawaii?
$1,249,125 in every county for 2026 — Hawaii is a high-cost area. FHA limits are also elevated, from about $586,500 on the Big Island up to roughly $1,299,500 on Maui. Loans above the limit are jumbo mortgages.
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