As the closing date approaches, it's often not the down payment that causes last-minute issues, but rather the closing costs. A buyer I met in Kahului had adequately prepared for the down payment but had not calculated the closing costs separately, leading to a scramble for additional funds at the last minute. There are three main items to check in order.

First, the size of the down payment. The average home price in Kahului is around $1,016,632 (according to Zillow, as of the end of February 2026, down 5.0% from the previous year). At this price, a 3.5% down payment would be $35,581, 5% would be $50,832, 10% would be $101,663, and 20% would be $203,326. If the down payment is less than 20%, PMI will be added monthly, while if it's over 20%, PMI will be eliminated, but a significant amount of cash will be tied up.

Second, the closing costs. In addition to the down payment, loan fees, appraisal fees, title insurance, and other costs are added as a percentage of the purchase price. It's advisable to calculate not just the exact down payment amount but also the closing costs and initial moving funds together.

Third, the conditions that affect approval rates. The fixed interest rates for 30 years vary by credit score: 6.59% for scores above 780, 6.66% for the 760s, 6.75% for the 740s, and 6.91% for the 700s (according to The Mortgage Report, as of July 2026). A DTI of 43% or less on the back end and 28% or less on the front end is considered stable (according to the Consumer Financial Protection Bureau). Getting pre-approved first and avoiding new loans or job changes before closing is a way to keep the assessment steady.

• Down payment - Determine a budget range between 3.5% and 20% of the purchase price
• Closing costs - Secure separate funds for loan, appraisal, and title-related costs
• Approval conditions - Check credit score, DTI, and pre-approval documents in advance

Maui County's effective property tax rate is known to be among the lowest of the five counties in Hawaii. The Hale Kamaʻāina program from the Hawaiʻi Housing Finance and Development Corporation offers low-interest loans that reduce down payment requirements to 5% of the purchase price and has previously provided closing cost assistance for initial buyers (according to HHFDC). Support that lowers the burden of down payments also effectively lowers the approval threshold.

Securing initial funds is also a part that is checked during the approval process. If you can show a balance that covers several months of payments after closing, lenders often view this as a sign of stable repayment ability. Since Maui has high tourist demand, homeowners insurance and hurricane-related insurance premiums can vary by area, so it's advisable to get insurance quotes before making an offer. Investors looking for rental income should also consider that short-term rental regulations can vary by area and that price increases cannot be guaranteed.

Many families fill part of their down payment with help from relatives. Both conventional and FHA loans recognize gift funds, but documentation proving the gift relationship and source of funds is also required. If a large amount suddenly appears in an account, lenders often request additional documentation, so it's best to prepare in advance. After an offer is accepted, locking in the interest rate and minimizing credit card use or income changes during the lock-in period is a way to proceed to closing without going through re-approval.

To summarize in order, the basic framework for maintaining approval rates is to determine the size of the down payment, secure closing costs and initial funds separately, and manage credit scores and DTI to get pre-approved.

When considering neighborhoods preferred by Korean families, check the school district ratings as well, but since school district boundaries change frequently, it's advisable to verify the assigned school before purchasing. This article is not investment or legal advice, and it is recommended to consult with a professional before proceeding with any actual contracts or loans.