The median single-family sale price dipped 4 % from last June to $750,000, but don’t mistake that for a buyers’ market—inventory sits at just 1.8 months. Condos are moving faster: average days-on-market fell to 19 in Kakaako and 14 in Ala Moana. Interest-rate bumps have pushed more locals into adjustable-rate products; 7/6 ARMs priced at 6.375 % are gaining share. Meanwhile, mainland retirees continue to offer cash over list for Waikiki and Hawaii Kai condos, so having a fully underwritten NMHL approval letter is critical.

• New construction: Howard Hughes’ ‘The Park’ in Ward Village releases 42 units this fall, priced $890 k–$1.4 M with developer closing-cost credits up to $15,000—stackable with NMHL’s $5,000 Community Catalyst grant.
• Investor alert: Bill 41 now enforces a minimum 90-day rental term in most residential zones, curbing Airbnb arbitrage and cooling bidding wars on studios.

Beyond the typical FHA and VA options, Honolulu buyers can tap several hyper-local sources:

• HHFDC Hula Mae: 3 % fixed-rate first mortgage plus up to $75,000 in down-payment assistance at 0 % interest, deferred for 30 years. Household income limits go to $133,440 for a family of four on Oahu.
• Mortgage Credit Certificate (MCC): Converts 20 % of your annual mortgage interest into a federal tax credit for the life of the loan—worth about $150/month on a $650,000 mortgage.
• Kauhale Loan: A local CDFI product that NMHL brokers; allows 3 % down with no PMI for essential workers—teachers, nurses, firefighters—provided the home is within 15 miles of your workplace.

Combine these and a couple earning $110 k combined can purchase a $650 k condo in Kakaako for roughly $9,000 out-of-pocket and a monthly payment of $3,950 including HOA.

Because Honolulu lenders scrutinize fluctuating tourism income, entrepreneurs gravitate toward areas with strong vacation-rental demand should cash-flow ever dip. We recommend:

• Kailua—Beach-town vibe, median home price $985 k, but ADU cottages rent for $2,800/month, offsetting the mortgage.
• Waikele—Central location, townhomes around $675 k, popular with military tenants guaranteed by BAH.
• Manoa—University rental pool; 3-bed homes average $1.05 M but rent by-room to students nets $5,200/month.

NMHL’s Bank-Statement program qualifies you with 12 months of business bank statements rather than tax returns—ideal for tour-company owners or food-truck vendors who write off depreciation.

With 17 installations, Oahu sees the nation’s highest VA loan volume per capita. NMHL underwrites to the VA’s residual-income guideline—$1,150 for a family of four—rather than the rigid 41 % DTI caps many mainland lenders impose. That flexibility lets a Hawaii-based E-6 with COLA and BAH qualify for a $700 k home in Kapolei with zero down and still stay under the threshold.

We also finance VA construction loans on Hawaiian Home Lands, finance the VA Funding Fee into the loan, and offer Interest-Rate Reduction Refinance Loans (IRRRLs) that close in 10 days—critical if rates drop while you’re deployed.

Spouses with a 660+ score can substitute the veteran’s entitlement if the service member is overseas; NMHL waives the typical one-year occupancy requirement for PCS orders.

Honolulu County assesses owner-occupied residential property at 0.32 % of assessed value, one-third the national average. A $750,000 primary residence incurs annual taxes of roughly $2,400. The county mails assessments each December; if your assessed value spikes more than 15 % year-over-year, you can file an appeal by January 15 with recent comps—NMHL keeps a database you can use.

Insurance is where island buyers feel sticker shock. Annual premiums average $1,800 for hurricane and $550 for lava coverage on Oahu; flood insurance adds another $650-$1,400 depending on FEMA zone. Lenders now require a separate hurricane policy if the dwelling replacement cost exceeds $600 k. We bundle quotes from three local carriers at pre-approval so you know true monthly housing expense before you offer.

Honolulu’s market rewards speed. Listings in Moiliili and McCully averaged 11 offers last month, with accepted bids 2.8 % over ask. Start by uploading pay-stubs, bank statements, and 2022/23 tax returns to NMHL’s encrypted portal; our local AI underwriter returns a full pre-underwrite in 2 hours. Once cleared, you’ll receive a Platinum Approval letter that lets sellers know your income, assets, and credit have already passed Fannie/Freddie or VA guidelines—functionally as strong as cash.

Schedule a 15-minute Zoom with a loan officer who lives on island—someone who can explain why a Waikiki studio with 150 sf of lanai counts toward total living area, or how special assessments at Hokua affect your condo questionnaire. From pre-approval to closing, NMHL averages 19 days on VA loans and 24 days on FHA, so you can move fast when the right view of Diamond Head appears on MLS.

Click here to start your Honolulu pre-approval or call (808) 555-LOAN for questions about down-payment grants, credit score boosts, or island-specific closing timelines.