2024 FHA Loan Limits in Hawaii
Mortgage loans backed by the Federal Housing Administration (FHA) continue to be a popular choice with homebuyers because of their flexible requirements. However, when choosing this type of mortgage loan, homebuyers are limited to loan limits implemented by the FHA. Knowing these limits ensures homebuyers find a property they will qualify for with an FHA loan. In Hawaii, the loan limit for a single-family home ranges from $517,500 to $1,029,250 in high-cost areas.
Hawaii FHA loan limits by county
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| HAWAII | $517,500 | $662,500 | $800,800 | $995,200 | $450,000 |
| HONOLULU | $779,700 | $998,150 | $1,206,550 | $1,499,450 | $678,000 |
| KALAWAO | $1,000,500 | $1,280,850 | $1,548,250 | $1,924,100 | $870,000 |
| KAUAI | $1,029,250 | $1,317,650 | $1,592,700 | $1,979,350 | $895,000 |
| MAUI | $1,000,500 | $1,280,850 | $1,548,250 | $1,924,100 | $870,000 |
How are FHA loan limits determined?
The FHA is required to set loan limits for all loans it guarantees as outlined in the National Housing Act. There are two limits – a floor and ceiling – that are determined by taking a percentage of the national conforming loan limit set by the Federal Housing Finance Agency (FHFA). The national conforming loan limit is used for conventional mortgages guaranteed or owned by Fannie Mae or Freddie Mac.
The national conforming loan limit for 2024 is $766,550 for a one-unit property. The FHA floor loan limit is calculated by taking 65% of the national conforming loan limit, or $498,257. Most counties nationwide fall under the floor loan limit. However, for high-cost areas, the ceiling loan limit is calculated by taking 150% of the national conforming loan limit, or $1,149,825, for a one-unit property.
In areas with higher building costs, including Hawaii, Alaska, Guam and the U.S. Virgin Islands, the loan limits could be further adjusted.
How to qualify for an FHA loan in Hawaii
In Hawaii, applying for FHA loans includes providing personal and financial information in order for the lender to determine if you have the means to repay the loan. Lenders also will look to see if you have the necessary funds to make a down payment as well as pay all required closing costs. With the flexible requirements of a FHA loan, borrowers could qualify more easily than they could with a conventional loan.
→ Credit score. For borrowers making a down payment of 10% or more, the minimum credit score required is 500. If making a down payment of 3.5%, borrowers should have a minimum credit score of 580.
→ Debt-to-income (DTI) ratio. Lenders review your debt load to see if you can afford the mortgage loan. They do this by adding up your monthly debt and dividing that amount by your gross monthly income to calculate your DTI ratio. Maximum DTI ratio for FHA loans is 43%, but if you have a high credit score plus sufficient cash reserves the DTI ratio could increase past that.
→ Mortgage insurance. Borrowers are required to have mortgage insurance on FHA loans. The upfront premium for the policy is usually added to your total loan balance, while the annual premium will likely be added to your monthly mortgage payment.
→ Income limits. There are no income limits for FHA loans.
→ Residency. The borrower must live in the home for at least one year.
→ Cash reserves. If you have a low credit score or a high DTI ratio, it’s possible the lender may require you to have cash on hand to cover monthly mortgage payments for a determined period of time.
Buying a multifamily property with an FHA loan
Investors looking to buy a multifamily home with two to four units can use an FHA loan to do so. In fact, you would only need 3.5% down, making this an affordable entry into real estate investments. However, there are additional requirements to qualify:
- Residency. Borrowers must live onsite in one of the units.
- Debt-to-income (DTI) ratio. The maximum DTI ratio to qualify for a FHA loan is 43%.
- Credit score. When paying 3.5% down on the loan, the minimum credit score is 580; if paying 10% down, the minimum credit score decreases to 500.
- Cash reserves. Lenders often require borrowers to maintain cash reserves equal to the amount of one monthly mortgage payment.
| Number of units | Low-cost FHA loan limit |
|---|---|
| Two | $637,950 |
| Three | $771,125 |
| Four | $958,350 |
FHA lenders in Hawaii
Lender | LendingTree rating | Min. FHA credit score | |
|---|---|---|---|
 | 580 | ||
 | Not disclosed | ||
 | 580 | ||
 | 580 | ||
 | 580 |
