FHA Loan Limits in Hawaii
If you’re house hunting in Hawaii, you’ll have extra borrowing power, with FHA loan limits ranging between $517,500 and $977,500 for a single-family home. That’s good news if you’re thinking about living on Kauai or Maui, where the median sales price topped out at $850,000 last year for a one-unit home.
Hawaii FHA loan limits by county
| County name | One unit | Two unit | Three unit | Four unit | Median sale price |
|---|---|---|---|---|---|
| HAWAII | $517,500 | $662,500 | $800,800 | $995,200 | $450,000 |
| HONOLULU | $770,500 | $986,400 | $1,192,300 | $1,481,750 | $670,000 |
| KALAWAO | $977,500 | $1,251,400 | $1,512,650 | $1,879,850 | $850,000 |
| KAUAI | $977,500 | $1,251,400 | $1,512,650 | $1,879,850 | $850,000 |
| MAUI | $977,500 | $1,251,400 | $1,512,650 | $1,879,850 | $850,000 |
How are FHA loan limits determined?
The U.S. Department of Housing and Urban Development (HUD) uses a percentage of the conforming loan limits set by the Federal Housing Finance Agency (FHFA) to establish FHA loan limits each year. Because housing prices change over time and vary by location, each county’s loan limit is based on its average home sales price from the prior year.
The lowest FHA loan limit is calculated as 65% of the conforming loan limit and applies to areas that are considered “low-cost.” This is called the FHA “floor,” and it’s the maximum FHA loan amount permitted on single-family home purchases for most of the country. The FHA “ceiling” is 150% of the conforming limit and only applies to “high-cost” areas where homes are more expensive.
The national FHA loan range for one-unit homes is between $472,030 and $1,089,300. All of the counties in Hawaii exceed the low-cost limit of $472,030.
THINGS TO KNOW
Hawaii is one of four HUD-designated “special areas” with a much higher ceiling of $1,633,950 to account for higher costs of construction. Other special exception areas include parts of Alaska, Guam and the U.S. Virgin Islands. There’s no information on the FHA mortgage limits search page about which parts of Hawaii are eligible for this special ceiling, so it’s best to contact a local FHA-approved lender in Hawaii if your purchase plans require a loan amount of this size.
How to qualify for an FHA loan in Hawaii
FHA loans are a popular choice for buyers who don’t meet conventional loan requirements. And the higher FHA loan limits in Hawaii may give buyers with less-than-stellar credit and only a 3.5% down payment a shot at homeownership – especially with median home prices ranging between $450,000 and $850,000 this past year.
You’ll need to meet the following FHA loan requirements to qualify for an FHA loan in Hawaii:
- Down payment and credit score: If you have a 580 credit score or higher, you may qualify to make the minimum required 3.5% down payment. If your credit score is between 500 and 579, you’ll need to put at least 10% down.
- Debt-to-income (DTI): Lenders use your DTI ratio to measure your monthly debt payments with monthly income. Most lenders prefer that your total debt takes up no more than 43%. Some lenders may offer exceptions.
- Mortgage insurance: FHA loans require two types of mortgage insurance: The annual mortgage insurance premium (MIP), which costs 0.45% to 1.05% of your loan amount, and the 1.75% upfront mortgage insurance premium (UFMIP), which is charged at closing and rolled into your mortgage.
- Occupancy: You must live in a home purchased with an FHA loan for at least 12 months.
- FHA home appraisal: An FHA home appraisal is required if you’re buying a home with an FHA loan.
Buying a multifamily property with an FHA loan
You may qualify to buy a multifamily house with between two and four units with only a 3.5% down payment. You must live in one of the units, but FHA guidelines allow you to use rental income on the other units to qualify in most cases.
FHA lenders in Hawaii
| Lender name | LT rating | Minimum FHA credit score |
|---|---|---|
| PennyMac Mortgage | 5 stars | 580 |
| Fairway Independent Mortgage | 3 stars | 580 |
| Caliber Home Loans | 3 stars | 620 |
| Guild Mortgage | 3 stars | 540 |