This amendment changes Hawaii's Downpayment Loan Assistance Program to allow loans that cover the full cost of a home, lower the amount buyers must pay themselves from five percent to three percent, and let borrowers use loan money for closing costs.
Hawaii2026Enacted
HB2270
Changes to Hawaii's Downpayment Loan Assistance Program
Last scannedAug 24, 2026, 11:30 PM
In one sentence
This law changes rules for the state downpayment loan program by removing limits on total loans, allowing more lenders to offer these loans, and lowering how much money buyers must put in themselves.
What it does
- Removes the rule that stopped a buyer's first mortgage and downpayment loan from adding up to more than 100% of the home value.
- Lowers the amount of personal cash a borrower must contribute for a downpayment from at least five percent to three percent of the sales price.
- Allows borrowers to use part of their downpayment loan to pay closing costs, prepaids, and reserves needed to buy the home.
- Gives financial institutions, mortgage lenders, and other qualified originators permission to create these loans for the state.
- Clarifies that the Hawaii Housing Finance and Development Corporation can set interest rates between one percent and eight percent based on income.
Who it affects
- Borrowers who want to buy a home in Hawaii using the Downpayment Loan Assistance Program.
- The Hawaii Housing Finance and Development Corporation (HHFDC).
- Financial institutions, mortgage lenders, and other loan originators working with HHFDC.
Limits and unknowns
- The law takes effect upon approval by the Governor.
- Specific interest rates and payment waiver terms are set by the corporation, so exact numbers for each borrower may vary.
- Borrowers must still meet other requirements like being a U.S. citizen or resident alien and completing homeownership counseling.
Plain language
Terms to know
- Combined loan-to-value ratio
- The total amount of all loans on a property compared to the value or price of that property.
- Downpayment loan assistance program
- A state-run program that gives low-interest loans to help people pay for part of their home purchase downpayment.
- Closing costs and prepaids
- Fees paid at the end of a real estate deal, such as taxes or insurance payments made in advance.
Official record
Sources
Official summary
RELATING TO THE DOWNPAYMENT LOAN ASSISTANCE PROGRAM. HHFDC; Downpayment Loan Assistance Program Amends the Downpayment Loan Assistance Program by: removing the prohibition on combined loan-to-value ratios; clarifying the Hawaii Housing Finance and Development Corporation's authority to establish interest rates and allow payment waivers and interest forgiveness; authorizing financial institutions, mortgage lenders, and other loan originators to originate downpayment loans; and reducing the borrower's required personal contribution toward the downpayment. Authorizes borrowers to use a portion of a downpayment loan to pay for closing costs, prepaids, and reserves for the purchase of the residential property for which the downpayment loan is provided. (CD1)
Official activity
Bill history
- Act 214, on 07/08/2026 (Gov. Msg. No. 1316).H
- Act 214, 07/08/2026 (Gov. Msg. No. 1316).S
- Received notice of passage on Final Reading in House (Hse. Com. No. 888).S
- Transmitted to Governor.H
- Received notice of Final Reading (Sen. Com. No. 816).H
- Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0).H
- Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none.S
- 48 Hrs. Notice (as amended CD 1) 05-06-26S
- Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 102-26).S
- Forty-eight (48) hours notice Wednesday, 05-06-26.H
- Reported from Conference Committee (Conf Com. Rep. No. 102-26) as amended in (CD 1).H
- The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) Chang, Hashimoto, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.S
- The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 3 Ayes: Representative(s) Evslin, Miyake, Pierick; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.H
- Conference Committee Meeting will reconvene on Wednesday 04-29-26 10:00AM in conference room 224.H
- Bill scheduled for Conference Committee Meeting on Tuesday, 04-28-26 10:03AM in conference room 224.H
- Received notice of Senate conferees (Sen. Com. No. 760).H
- Senate Conferees Appointed: Chang Chair; Hashimoto Co-Chair; Fevella.S
- Received notice of appointment of House conferees (Hse. Com. No. 799).S
- House Conferees Appointed: Evslin, Miyake Co-Chairs; Pierick.H
- Received notice of disagreement (Hse. Com. No. 780).S
Changes
Amendments
3 stored
This amendment changes Hawaii's downpayment loan rules by removing a limit on total borrowing, allowing interest forgiveness, letting more types of lenders handle loans, and lowering the amount buyers must pay from their own savings.
This amendment changes Hawaii's downpayment loan rules to allow loans that cover the full cost of a home, lets borrowers use funds for closing costs instead of just the down payment, lowers the amount buyers must pay from their own savings, and gives more flexibility on interest rates and repayment.