LoansByEmmett
Waikoloa Big Island resort

Big Island Home & Investment Loans

Hawaii's Big Island is the most affordable and most varied of the islands, and financing here rewards local knowledge. The sunny Kona and Kohala side runs from Kailua-Kona homes to the luxury resort corridor at Waikoloa and Mauna Lani; the greener Hilo side offers the state's most attainable prices; and much of the island's rural land carries lava-zone considerations that directly affect what loan you can use. It's also the one Hawaiian island with meaningful USDA zero-down eligibility. Whatever and wherever you're buying, I finance it and shop 240+ wholesale lenders, and I'll tell you exactly how the lava zone and insurance affect your options. NMLS #233747.

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Big Island at a Glance

Waikoloa & Kohala Coast

South Kohala resort corridor (~$1.47M avg) • retiree and second-home draw

Kailua-Kona

West side hub (~$1.05M) • Lava Zone 4 (normal lending) • resort-adjacent lifestyle

Hilo

East side (~$565K) • county water/sewer • UH Hilo • the island's attainable side

Puna / Ka'u

The sub-$500K frontier • Lava Zones 1–2 affect financing and insurance

USDA

The Big Island is the rare Hawaii island with real USDA zero-down eligibility

High-Cost County

Hawaii County conforming limit $1,249,125 • FHA limit $586,500 (pulled live from the loan-limits module)

Hawaii County conforming limit: $1,249,125 • FHA limit: $586,500

Today’s Purchase Mortgage Rates

Live pricing from the same daily rate feed shown on our Today’s Rates page. These update automatically each day.

Conventional 30-Year Fixed

Conventional – Primary Residence

6.25%
Interest Rate
6.28%
APR

FHA 30-Year Fixed

FHA – Primary Residence

5.75%
Interest Rate
6.311%
APR

VA 30-Year Fixed

VA – Primary Residence

5.75%
Interest Rate
5.882%
APR
Rates as of

Rate Assumptions

Purchase, 30-yr fixed, $300K Loan, $400K Value, Credit 759

APR & Disclosures

The Annual Percentage Rate (APR) shown reflects the cost of credit over the loan term, including applicable fees, and is based on the assumptions above. Your actual rate and APR depend on your credit profile, loan amount, property, occupancy, and other factors. For information purposes only and does not constitute a loan approval or commitment to lend. Rates are subject to change without notice.

Get My Custom Rate See All Today’s Rates

Monthly Payment Calculator

Calculate your estimated monthly mortgage payment including taxes and insurance

%
$70,000
%
Estimated Monthly Payment
$2,563
Principal & Interest$1,863
Property Tax (est.)$350
Home Insurance (est.)$350
Loan Amount$280,000

Waikoloa & the Kohala Coast — Resort and Second-Home Living (second home & DSCR)

South Kohala is the Big Island's luxury and resort heart, and its most expensive region, averaging around $1.47 million. Waikoloa Village anchors it, booming with retirees drawn to resort-style living on the dry, sunny side of the island (without Kauai's or Hilo's rain), which keeps inventory perpetually tight because few owners want to leave. The Kohala Coast resort communities, Mauna Kea and Mauna Lani, offer beachfront and golf-community estates. This is a strong second-home market (10% down for mainland buyers) and, where zoning permits, an investment/DSCR market for professionally managed resort condos. Nearby Waimea offers a wider range, from entry-level homes in the $400,000s to ranches and estates above $1M.

Kailua-Kona — the West Side Hub (conventional, jumbo & second home)

Kailua-Kona is the Big Island's largest employment center and West-side lifestyle hub, with an average around $1.05 million reflecting everything from residential homes to Keauhou condos to custom builds above Alii Drive. Importantly for financing, Kailua-Kona sits in Lava Zone 4, a moderate-hazard zone with standard insurance availability and normal lending terms, so conventional, jumbo, and second-home financing all work normally here (unlike the higher-hazard zones). Under about $600K on the Kona side you're mostly looking at condos and lots rather than single-family homes.

Hilo & East Hawaii — the Island's Attainable Side (conventional, FHA & USDA)

Hilo, on the wetter east side, is the Big Island's most attainable market (average around $565K), and it offers something no other east-side area matches: county water, sewer, and walkable town services, fundamentals that support pricing and financing. Established neighborhoods like Waiakea Uka, Kaumana, and Ainako anchor a genuine local community, with the University of Hawaii at Hilo adding stability. It's a strong conventional and FHA market, and Hilo, Puna, and the rural east side are where the Big Island's USDA zero-down eligibility, rare anywhere in Hawaii, actually comes into play.

Lava Zones and Financing — the Thing Every Big Island Buyer Must Know

The Big Island is divided into lava-hazard zones 1 through 9, and the zone directly affects your financing, so I check it before anything else. Zones 1 and 2 (much of Puna and Ka'u, where you'll see the island's cheapest homes and land) carry real risk and are difficult or impossible to insure, which is the practical hurdle: FHA loans are not available in Lava Zones 1 and 2, and conventional lenders that will finance there typically require at least 20% down. In those zones, the USDA Rural Development program is one of the key government-backed options, another reason USDA matters here. Zone 4 (Kailua-Kona) has standard insurance and normal lending. Zones 7–9 carry extremely low risk. Some rural properties also rely on rainwater catchment rather than county water, which lenders treat differently. The bottom line: always confirm the lava zone (and the insurance and water situation) before you fall in love with a property, and I'll tell you upfront which loans are available for it.

Loan Programs across the Big Island

Second Home

10% down for mainland buyers purchasing a Waikoloa or Kohala Coast getaway.

Conventional / High-Balance

Hawaii’s high conforming limit covers most Big Island homes; normal terms in standard lava zones.

USDA

Zero down in eligible rural areas — the Big Island is the rare Hawaii island where this genuinely applies, including some higher-lava-zone properties.

Jumbo

For Kohala Coast resort estates and higher-end Kona above the conforming limit.

VA

Zero down, no PMI, no loan limit with full entitlement, for eligible veterans.

DSCR / Investment

For eligible resort-area rentals; qualifies on rental income (confirm zoning and lava zone).

Big Island Mortgage FAQ

Is the Big Island really more affordable than the rest of Hawaii?+
Yes, it’s the most affordable of the four main islands, with a county-wide single-family median around $650,000–$720,000, though the gap is smaller than mainland headlines suggest. The Hilo (east) side is the attainable side (~$565K); the Kona and Kohala (west) side runs higher (Kona ~$1.05M, South Kohala ~$1.47M).
How do lava zones affect getting a mortgage?+
Significantly. In Lava Zones 1 and 2 (much of Puna and Ka’u), FHA loans are not available, and conventional lenders that will finance there typically require at least 20% down, largely because insurance is hard to obtain. USDA is one of the key options in those areas. Zone 4 (Kailua-Kona) has normal lending and insurance. Always confirm the zone before buying, I’ll tell you which loans work for a specific property.
Can I get a USDA loan on the Big Island?+
Yes, and the Big Island is the rare Hawaii island where USDA zero-down financing genuinely applies, particularly in Hilo, Puna, and rural east-side areas. Eligibility is by exact address and household income. It’s also an important option in higher-lava-zone areas where FHA isn’t available.
Why is FHA not available in some Big Island areas?+
FHA won’t insure loans in Lava Zones 1 and 2 because of the demonstrated volcanic risk (as the 2018 Kīlauea eruption showed) and the resulting insurance difficulty. In those zones, conventional (with more down) or USDA are the paths, and I confirm what’s available for the specific property.
Is Waikoloa a good place for a second home?+
Yes, it’s one of the most popular second-home and retiree markets on the island, resort-style living on the dry, sunny Kohala side, with tight inventory because owners rarely sell. Second-home conventional financing (10% down) is the usual tool, and some resort condos work as managed rentals where zoning allows.
What is the 2026 conforming loan limit on the Big Island?+
Hawaii County’s 2026 conforming (high-balance) limit is $1,249,125 for a single-family home. Homes above that require jumbo financing, common on the Kohala Coast. I pull the current figure live from the official limits.
Should I worry about rainwater catchment when financing a home?+
It’s worth knowing. Many rural Big Island properties rely on rainwater catchment rather than county water, and lenders treat catchment systems differently in underwriting. Hilo’s county water and sewer is one reason its financing is more straightforward. I flag the water source as part of reviewing a property.
Is a VA loan useful on the Big Island?+
Yes. For eligible veterans with full entitlement, VA offers zero down, no PMI, and no loan limit. Just note that VA (like other loans) still requires the property to be insurable, which ties back to the lava zone.
Are there down payment assistance programs on the Big Island?+
Yes. The Hawaii Housing Finance and Development Corporation (HHFDC) offers down payment assistance and below-market-rate mortgages for qualifying buyers. Combined with the island’s lower prices and USDA availability, the Big Island is Hawaii’s most attainable entry point.
Do you finance the whole Big Island?+
Yes, Waikoloa, the Kohala Coast, Kailua-Kona, Waimea, Hilo, Puna, and Ka’u, for second-home, retiree, first-time, and investment buyers, with upfront guidance on lava zones, insurance, and which loans each property qualifies for.
Emmett Clark, mortgage broker NMLS #233747

Emmett Clark — NMLS #233747

I shop 240+ wholesale lenders across the Big Island to find the rate and program that fits your purchase, with upfront guidance on lava zones, insurance, and water source. Whether it's a Waikoloa second home, a Kona residence, or an affordable Hilo-side home, the process starts with a quick conversation.

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Buying on the Big Island?

Tell me the area and your plans, a Waikoloa second home, a Kona residence, or an affordable Hilo-side home, and I'll check the lava zone, tell you which loans are available, and get you pre-approved. Quick response, no obligation.

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Serving Big Island, Hawaii

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Why Contact Emmett?

  • ✓ Local Big Island market expertise
  • ✓ Access to 240+ wholesale lenders
  • ✓ Same-day pre-qualification available
  • ✓ No obligation, free consultation