Known for its stunning beaches and tropical climate, Honolulu, Hawaii, is more than just a vacation destination. It's a city where dreams of homeownership can become a reality, thanks to the availability of HUD housing loans. These loans, backed by the U.S. Department of Housing and Urban Development (HUD), offer an affordable pathway to homeownership, making the dream of living in paradise accessible to many.

HUD housing loans in Honolulu are a beacon of hope in a city where the cost of living often outpaces income levels. They provide a lifeline to those who may otherwise struggle to secure traditional financing, ensuring that the city's unique blend of cultures and communities continues to thrive.

Local Housing Market Overview

The housing market in Honolulu is as diverse as the city itself. From luxury beachfront properties to affordable family homes, there's something for everyone. However, the high cost of living can make homeownership a challenge for many residents. This is where HUD housing loans come into play, offering a solution to the affordability crisis.

According to data from HUD, the demand for affordable housing in Honolulu is on the rise. This is driven by a combination of factors, including population growth and the city's appeal as a desirable place to live. The introduction of new housing developments and projects, many of which are supported by HUD housing loans, is helping to meet this demand.

Economic Landscape and Demographic Trends

Despite its reputation as a tourist hotspot, Honolulu's economy is multifaceted. The city is home to a range of industries, from healthcare and education to military and government services. These sectors provide employment for a significant portion of the population, contributing to the city's economic stability.

Demographic data from the U.S. Census Bureau shows that Honolulu's population is diverse and dynamic. The city is home to a mix of age groups, ethnicities, and income levels, all of which influence the housing market. The presence of several higher education institutions and major healthcare facilities also plays a role, attracting students and professionals from across the globe. This diversity and dynamism, coupled with the availability of HUD housing loans, make Honolulu a city where anyone can find their place in the sun.

Today's Interest Rates in Honolulu

Find today's rates in the table below.

Please note that these are only benchmark index rates — each loan product will have a rate that varies depending on the property, the location, the borrower's financial strength and experience, and several other factors.

Our Experts

When it comes to getting a HUD loan for your multifamily property, there are several amazing options. The names of the loans themselves are not particularly descriptive, however — more alphabet soup than proper name — yet they have major differences in purpose, eligibility, and terms.

Our team connects you with lenders across the U.S. to find the best financing terms for your property, even if that ends up being outside the world of HUD financing. It doesn't matter if you're buying or building, renovating or expanding, shopping your loan to multiple lenders puts you in a strong position to pick the financing terms that meet your needs.

Our experienced team of capital markets advisors will source the very best terms from our unparalleled network of lenders to ensure your property gets the best financing terms available. We offer this service completely free of charge.

Looking for more information about Honolulu? Read on below. Otherwise, click the button below, and we'll get right back to you with your free multifamily loan quote.

Current HUD Multifamily Loans in Honolulu

There are a wide range of HUD financing options for multifamily properties in Honolulu. Keep reading to learn which one could be the most suitable for your property.

HUD 223(f) Loans

A HUD 223(f) loan is an extremely versatile financing option that can be used for the acquisition or refinance of a multifamily property with more than five units. With long, fully amortizing terms, fixed interest rates and high LTVs, these loans can be the ideal financing vehicle to acquire a multifamily property.

HUD 221(d)(4) Loans

The HUD 221(d)(4) loan is the highest-leverage, lowest-cost construction loan available for a multifamily development. Offering terms of up to 43 years at a fixed interest rate, this financing is extremely popular with developers for good reason. During construction, the loan is interest-only (for up to three years), and upon completion the note has a fully amortizing, 40-year term.

HUD 223(a)(7) Loans

Fast isn't what most people might think of when they think of getting a HUD multifamily loan. However, a HUD 223(a)(7) loan offers both speed and simplicity, with fewer reports and documentation needed. At the same time, this program offers loans with lengthy, fully amortizing terms, and low, fixed rates in a non-recourse package.

Note that while a HUD 223(a)(7) loan can be a wonderful option, it is only available for properties with existing HUD multifamily debt.

HUD 241(a) Loans

If you need supplemental financing for your apartment building in Honolulu, a HUD 241(a) loan could be a great option. These loans are non-recourse and offer financing at a loan-to-cost ratio of 90% for for-profit entities and 95% for nonprofits. You need an existing HUD loan on your apartment building or healthcare property to qualify.

Interest rates are fixed, and the loan's term length typically will match the term of the senior HUD loan on the property, though in many cases this term can be extended up to 40 years.

HUD 232/223(f) Loans

HUD's healthcare property loan, the 232/223(f) loan, is similar to the previously mentioned HUD 223(f) financing option. Useful for purchasing or refinancing healthcare properties (including skilled nursing and assisted living facilities), the loan does have some restrictions in terms of commercial space. However, the benefits of a 35-year, fully amortizing term at a fixed rate is unparalleled in the healthcare sector.

Think a HUD multifamily loan could be right for your property in Honolulu? Add your details to the form below, and we’ll match you with the best lender — and loan — for your investment strategy.

Multifamily Property Insurance in Honolulu

This part isn't about loans, but it's just as important to your investment's success: insurance.

Multifamily insurance premiums have shot through the roof over the past few years, as I'm sure you know. Whether you own (or plan to own) a market-rate apartment building or an affordable housing property, this will have a huge impact on your profitability — and, worst case, ability to operate at all.

Janover Insurance Group is dedicated to finding the best insurance solutions for your multifamily property in Honolulu, regardless of if it's affordable housing or if you're using a HUD loan. Click to get a free insurance quote for your property — no obligation whatsoever.