Hawaii Housing Market Overview
Hawaii offers a unique real estate market that blends tropical living with urban amenities. While the state’s housing costs are among the highest in the country, VA loans provide significant advantages for veterans, including no down payment, competitive interest rates, and no private mortgage insurance (PMI). Whether you’re looking for a home in Honolulu’s bustling cityscape or a tranquil retreat on Maui, VA loans help make homeownership attainable for eligible service members.
| City |
Average Home Price |
Estimated Monthly VA Loan Payment* |
Average Property Tax/Year |
| Honolulu |
$900,000 |
~$5,400 |
~$1,800 |
| Hilo |
$500,000 |
~$3,000 |
~$1,000 |
| Kailua |
$1,200,000 |
~$7,200 |
~$2,400 |
| Kapolei |
$800,000 |
~$4,800 |
~$1,600 |
| Kahului |
$750,000 |
~$4,500 |
~$1,500 |
Hawaii VA Loan Limit
$1,089,300
Hawaii’s high cost of living translates to higher VA loan limits compared to many other states. Veterans with full entitlement can borrow as much as their lender approves without a down payment. For those with partial entitlement, loan limits vary based on local property values. The elevated loan limits in Hawaii make VA loans especially valuable for veterans seeking homes in this expensive market.
Hawaii Property Tax Exemptions for Disabled Veterans
Hawaii provides property tax exemptions to disabled veterans, offering significant savings on annual taxes. Veterans with a 100% disability rating may qualify for full or partial property tax relief on their primary residence.
This assistance helps reduce long-term housing costs in a state known for its premium real estate prices. Contact your county tax office or the Hawaii Department of Taxation for eligibility and application details.
| Disability Rating |
Tax Exemption Amount |
Details |
| 100% Disability |
Full exemption |
Veterans with a 100% service-connected disability may qualify for a complete property tax exemption. |
| 70%-99% Disability |
Varies by state |
Many states offer significant reductions in property taxes for veterans in this range; check state-specific limits. |
| 50%-69% Disability |
Partial exemption |
Partial tax relief may apply based on local guidelines and state-specific programs. |
| 30%-49% Disability |
Partial exemption |
Some states offer modest property tax reductions for veterans in this range. |
| 10%-29% Disability |
Limited or no relief |
Limited programs may be available; benefits vary significantly by state. |
Types of VA Loans
VA Purchase Loan
VA purchase loans are designed to help veterans buy homes with no down payment and competitive interest rates. These loans are available for single-family homes, condos, and multi-unit properties.
- Waives down payment for easier access to homeownership
- Offers lower interest rates than conventional loans
- Covers a range of properties, from single-family homes to multi-unit residences
Interest Rate Reduction Refinance Loan (IRRRL)
Also called the VA Streamline Refinance, this loan allows veterans to refinance existing VA loans to secure lower interest rates or better terms.
- Simplifies refinancing with minimal documentation
- Reduces monthly payments by lowering interest rates
- Enables rolling closing costs into the loan, reducing upfront expenses
Cash-Out Refinance Loan
Cash-out refinancing lets veterans access their home equity for major expenses or debt consolidation by refinancing existing mortgages.
- Provides access to home equity for significant financial needs
- Can refinance VA and non-VA loans alike
- Supports goals like renovations or consolidating high-interest debt
Native American Direct Loan (NADL)
Native American Direct Loans are available to Native American veterans or their spouses, NADL loans assist in purchasing, building, or improving homes on federal trust land.
- No down payment requirement, easing upfront costs
- Features reduced closing costs and competitive rates
- Exclusively supports housing on federal trust land
Rehabilitation and Renovation Loan
A VA-backed rehab loan bundles home improvement costs into a single mortgage, making it easier to finance repairs or upgrades.
- Combines renovation costs with the loan for convenience
- Ideal for both essential fixes and modernization projects
- Helps protect or increase the property’s value
Energy Efficient Mortgage (EEM)
VA EEM loans finance eco-friendly home upgrades, such as solar panels or improved insulation, reducing utility costs over time.
- Supports sustainable living with long-term cost savings
- Can be added to a VA loan or refinance seamlessly
- Funds upgrades to lower energy consumption and expenses
Hawaii Housing Programs for Veterans
Hawaii Housing Finance and Development Corporation (HHFDC)
Provides affordable housing options and financial assistance for veterans and low-to-moderate income families.
- Offers down payment assistance loans for qualifying buyers
- Supports first-time homebuyers with educational resources
- Complements VA benefits to reduce upfront costs Learn More About HHFDC
Habitat for Humanity Hawaii – Veterans Housing Program
Partners with veterans to build affordable housing through sweat equity and financial counseling.
- Builds affordable homes tailored to veterans’ needs
- Provides financial literacy and homeownership education
- Encourages community involvement through volunteer work Explore Habitat for Humanity Hawaii
Operation Homefront – Transitional Housing for Veterans
Offers transitional housing and financial counseling for veterans moving toward permanent housing solutions.
- Provides temporary housing for veterans in need
- Includes financial planning and credit repair services
- Assists in transitioning to affordable, permanent homes Discover Operation Homefront Hawaii
Frequently Asked Questions
What is the VA loan limit in Hawaii?
The VA loan limit in Hawaii is $1,089,300 for veterans with partial entitlement. Veterans with full entitlement can borrow as much as a lender approves without a down payment.
Do VA loans require a down payment?
No, VA loans typically do not require a down payment, making them a great option for veterans looking to minimize upfront costs.
What credit score is needed for a VA loan?
While the VA doesn’t set a specific credit score, most lenders prefer a minimum of 620. Some may accept lower scores depending on the borrower’s overall financial profile.
Can VA loans be used for condos in Hawaii?
Yes, VA loans can finance condos, but the condominium must be VA-approved. Veterans should check with their lender or the VA for eligibility.
Are there property tax exemptions for veterans in Hawaii?
Yes, Hawaii offers property tax exemptions for disabled veterans. The amount depends on the disability rating and local county regulations.
Can VA loans cover new construction in Hawaii?
Yes, VA loans can finance new construction, provided the borrower meets the lender’s requirements. Some lenders may require interim construction financing.
Are VA loans better than conventional loans?
VA loans often feature no down payment, no PMI, and competitive interest rates, making them a preferred choice for eligible borrowers compared to conventional loans.
What documents are required to apply for a VA loan?
Veterans need a Certificate of Eligibility (COE), proof of income, and credit history. Additional documents may include DD Form 214 or a statement of service for active-duty members.
Can I refinance a VA loan in Hawaii?
Yes, veterans can refinance using the IRRRL for lower rates or a cash-out refinance to access home equity. Both options offer flexible benefits.
Can VA loans be used for multi-unit properties?
Yes, VA loans can finance multi-unit properties (up to four units) if the borrower occupies one of the units as their primary residence.
