Options for Millennial Homebuyers


In recent news, Urban Honolulu made #2 for the area with the lowest percentage of millennials owning a home, where only 18.3% of homeowners are mid-30’s and younger. With rising housing prices in Hawai’i, many 20 and 30-year-olds feel owning a home is a far-off dream. Despite these statistics, there are options for those young adults for whom putting the usual 20% down payment on a home purchase is currently unfeasible.


  • FHA Program

The Federal Housing Administration offers more attainable loans than a typical mortgage lender. The down payment with the FHA is 3.5%, and allows for those with lower credit scores to obtain a home loan. All borrowers are required to have upfront insurance at 1.75% and annual mortgage insurance starting at 0.8%.

  • USDA loans

The United States Department of Agriculture offers home loans for “low to moderate income” households for properties in rural areas. These loans require buyers to be owner-occupant and meet income and credit eligibility. In addition, there is a 1% upfront fee that may be included in the loan, as well as an annual fee of 0.35% on the loan balance.

  • VA loans

The Department of Veteran Affairs backs loans for veterans and spouses that make buying a home extremely accessible. VA loans have the benefits of no down payment, limited closing costs, and reduced interest rates. Credit and income qualifications are also more flexible than standard mortgages. VA loans require a funding fee that starts at 1.5%, however this can be included in the loan.

If you or someone you know would like more information about buying a home with little to no down payment, please do not hesitate to contact Solid Rock Home Loans at (808) 255-7498 or ed@urockloans.com.