FHA Loan Options?
FHA loan is an attractive option to first time homebuyers because they are designed for low-to-moderate income borrowers and they require a lower minimum down payment or credit score,
compared to many conventional loans. Your FHA loan is issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA).
FHA on the Big Island is almost scarce because of the loan limits. $391,000 for single family homes is near impossible in Kona but excellent in Naalehu. FHA does not loan in lava zone 1 and 2 so forget Ocean View and Pahoa. If you’re buying a duplex the FHA loan limit is $500,550 for Hawaii County (Big Island). Now check this out…Maui, Honolulu and Kauai are way higher! Link. Hilo drives down Hawaii County tremendously. In three years I have completed ONE FHA Loan. I’m not suggesting I avoid FHA programs, but I begin with USDA, then DU97, then lastly a FHA Loan.