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Updated on Wednesday, April 3, 2019
Compared with other states, Hawaii’s housing market is a relatively competitive one — with increasing demand for a piece of the state’s limited land and higher home prices than the national average. In late 2018, the national median home sales price was $302,400, and in 2019, Hawaii is seeing median prices that range anywhere from $337,000 all the way to $590,000, depending on the region.
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Due to these high costs, only 6% of the market in Hawaii is financed by Federal Housing Administration (FHA) loans, but because of the more lenient nature of these loans, it’s worth finding out if you qualify. Each year, the FHA sets new loan limits to account for the cost of living in various areas, and the 2019 limits for Hawaii range from $387,550 to $721,050 for a single-family home.
Hawaii FHA Loan Limits by County
|County Name||One-Family||Two-Family||Three-Family||Four-Family||Median Sale Price|
How are FHA loan limits set?Note: need to add chart here.
FHA loan limits are updated annually based on the cost of living in a particular area of the country, and they reflect the maximum mortgage amount the FHA will insure. The national conforming loan limit for 2019 is set at $484,350 for most parts of the U.S.
More specifically, FHA mortgage limits are calculated based on 115% of the median home price in that particular county, a number determined by the Federal Housing Finance Agency (FHFA).
This year saw an increase in loan limits for over 3,000 counties, with the new national “floor” limit for single-family homes in low-cost areas rising from $294,515 in 2018 to $314,827 for 2019. That amount is 65% of the conforming loan limit for mortgages that follow Fannie Mae and Freddie Mac guidelines. The “ceiling” limit, also called the maximum conforming loan limit, also has increased this year and in high-cost areas like Hawaii, it’s up from $679,650 in 2018 to $726,525 for 2019.
Are you eligible for an FHA loan in Hawaii?
The benefits of an FHA loan are numerous — from more flexible eligibility requirements to the additional financial support in the form of lower down payments and closing-cost assistance. A lender will generally assess your eligibility for an FHA loan based on common factors like your credit score, income levels, existing debt and your ability to make a down payment.