Hawaii Loan Options
Hawaii FHA Loan
Some Benefits of an FHA Loan:
New, Lower Mortgage Insurance Premiums
In 2023, the FHA lowered many of the monthly mortgage insurance premiums.
Low Down Payment
Minimum down payment of only 3.5% for qualified applicants.
First Time Home Buyer
FHA is an excellent option for a first-time home buyer; however, you do not need to be a first-time home buyer to be eligible for a Hawaii FHA loan. FHA loans are available to anyone and can be used to purchase or refinance a home.
Flexible Underwriting
The main advantage of an FHA loan is that the credit criteria is not as strict as the credit criteria for a conventional loan, which is sold to Fannie Mae and Freddie Mac. Another perk of an FHA loan is that they allow a higher debt-to-income ratio than conventional loans, meaning they may require less income to qualify.
Credit Problems
Someone who may have had credit problems or lacks traditional credit can still obtain FHA financing.
Non-traditional credit
If you don’t have a credit score, contact us today to see if you are eligible for non-traditional credit qualifying.
Assumable
Hawaii FHA loans are assumable, allowing a person to take over the mortgage without the additional costs of obtaining a new loan.
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 |
FHA Mortgage Insurance Premiums
The FHA Loan has both an upfront and monthly mortgage insurance premiums.
The upfront mortgage insurance premium (UFMIP) is a fee required for loans insured by the Federal Housing Administration (FHA). The UFMIP serves as a form of insurance coverage for the FHA, protecting them against potential losses in case a borrower defaults on their loan.
The UFMIP is a one-time payment made at the closing of the loan. It can be paid in cash which increases a borrower’s closing costs, or it can be financed and rolled into the loan amount which increases the overall loan balance.
The UFMIP amount is calculated at 1.75% of the loan amount.
The UFMIP is generally non-refundable, meaning you won’t get a refund if you refinance or sell the property in the early years of the loan. However, if you refinance an existing FHA loan into a new FHA loan within a specific timeframe, a portion of the original UFMIP may be eligible for a credit toward the new UFMIP.
The FHA monthly mortgage insurance premium (MIP) is an ongoing fee that borrowers are required to pay as part of their monthly mortgage payment for FHA loans.
The monthly MIP is added to your mortgage payment and paid as part of your monthly installment.
The calculation of the monthly MIP involves multiplying the loan amount by an annual MIP rate and dividing it by 12 months. The annual MIP rate depends on factors such as the loan amount, the loan term, and the loan-to-value ratio. See below chart for the current rates based on these factors.
The duration of the monthly MIP payment depends on the loan-to-value ratio at the time of loan origination. For most FHA loans, the MIP is paid for the life of the loan, however some may allow the MIP to be canceled after 11 years.
For accurate and up-to-date information on FHA Loans, please give us a call to connect with one of our loan officers in your area today: 1-866-389-2778
2024 FHA Mortgage Insurance Premiums
Mortgage Term of more than 15 Years
| Base Loan Amount | Loan to Value | MIP (basis points) | Duration |
|---|---|---|---|
| Less than or equal to $726,200 | ≤ 90.00% | 50 bps | 11 years |
| > 90.00% but ≤ 95.00% | 50 bps | Mortgage Term | |
| > 95.00% | 55 bps | Mortgage Term | |
| Greater than $726,200 | ≤ 90.00% | 70 bps | 11 years |
| > 90.00% but ≤ 95.00% | 70 bps | Mortgage Term | |
| > 95.00% | 75 bps | Mortgage Term |
Mortgage Term less than or equal to 15 Years
| Base Loan Amount | Loan to Value | MIP (basis points) | Duration |
|---|---|---|---|
| Less than or equal to $726,200 | ≤ 90.00% | 15 bps | 11 years |
| > 90.00% | 40 bps | Mortgage Term | |
| ≤ 78.00% | 15 bps | 11 years | |
| Greater than $726,200 | > 78.00% but ≤ 90.00% | 40 bps | 11 years |
| > 90.00% | 65 bps | Mortgage Term |
Information and self-help tools are provided for your independent use and are not intended to provide investment advice. We cannot and do not guarantee loan eligibility or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to speak with one of our experienced loan officers for a loan eligibility analysis and custom rate and payment estimate.
