Covering the Cost: The cost of buying and owning a home in Hawaii

In HNN’s new livestream show “Covering the Cost with Annalisa Burgos,” we break down the numbers behind Hawaii’s affordability crisis in candid conversations with financial experts, entrepreneurs and community leaders.

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HONOLULU (HawaiiNewsNow) – In this episode of “Covering the Cost” on June 17 at 12:30 p.m., Annalisa Burgos sits down with Reina Miyamoto, executive director of the Hawaii HomeOwnership Center, to talk about the cost of owning a home and tips for people looking to buy property in one of the most expensive real estate markets in the world.

The median single-family home price hovers around $1 million in Hawaii, with fewer than 25% of households earn enough to afford a mortgage.

The state has the nation’s second highest median monthly homeownership costs in the U.S. at $2,937, covering mortgage, insurance, taxes, utilities and fees.

The average HOA fee in Hawaii is $762 a month, nearly $500 above the national average, with some condo owners seeing insurance premiums jump as much as 1,000% due to disasters like the Maui wildfires.

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There are programs designed to help residents purchase a home, including the Hawaii Home Ownership Center’s down payment assistance program, up to $125,000, requiring only 3% down, no mortgage insurance, for buyers at or below 120% of area median income.

Its savings match program allows a $2,500 personal contribution, which yields $15,000 in assistance. And the state’s Hale Kamaaina mortgage program offers a fixed 30-year rate around 5% for first-time buyers.

Counties also offer programs for home buyers. The Honolulu Down Payment Loan, offering up to $40,000 for first-time buyers who can put 5% down in cash. On Kauai, the HOME Investment Partnership Program offers up to $150,000 for first-time buyers meeting income requirements. On Maui, the First-Time Homebuyer Down Payment Assistance offers up to $30,000, awarded by lottery.

If you’re looking to buy a home, review your debt-to-income ratio. Mortgage lenders want your total debt. such as mortgage, car, student loans, credit cards, should stay under 43% of your gross monthly income. Also be sure to factor in closing costs, such as real estate commissions, inspection costs, and other fees involved in the home buying process.

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