As household debts soar in Hawai‘i, HCL offers solutions with interest rates below 5%

Despite a new report that shows household debt in Hawai‘i on the rise, Hawai‘i Community Lending (HCL) aims to keep the dream of home ownership alive for local families, offering some of the state’s lowest interest rates on purchasing and refinancing homes on Hawaiian Home Lands. 

According to a new study by WalletHub, Hawai‘i saw the greatest increase in household debt in the US during the third quarter of 2025. The state outpaced California, Colorado, Utah and Washington, with average debt that grew by $975 from the second to the third quarter to reach $287,742.

As Hawai‘i residents face these challenging times going into the holiday season, HCL reaffirms its commitment as the state’s premier nonprofit mortgage lender by offering mortgage loans and refinancing options with interest rates below 5%.

“Our goal at HCL is to get local and Hawaiian families on the land and into homes. These low interest rates are one tool that we can use to meet our people where they are at financially to make homeownership happen,” said HCL Chief Executive Officer Jeff Gilbreath. “We are dedicated to doing our part to solve Hawai‘i’s housing crisis, and it won’t happen overnight, but it will happen one home, one family at a time.”

HCL offers two direct loans for purchase and refinancing on Hawaiian Home Lands, both with interest rates available below 5%.

The Kahua Hale Mortgage Loans are available to low-income native Hawaiians buying homes in rural communities. These loans offer zero-down mortgages with a flat $2,000 fee and interest rates at 1% below the USDA Direct effective rate.

The Kūpaʻa Hale Mortgage Loan is another loan option that helps native Hawaiian families access zero-down mortgages statewide with a 2% fee and below-market interest rates.

These loans are available on Hawaiian Home Lands ONLY.  Borrowers either need to be low-income below 80% area median income or purchase in a low- to moderate-income census tract.

“As the calendar year draws to a close, it’s not too soon to start planning and setting financial goals for 2026,” Gilbreath says. “HCL can be your trusted financial community partner to make homeownership your goal in the new year.” 

HCL was created to fund the affordable housing ecosystem from homebuyer to homebuilder to homeowner. Working to help solve the statewide housing crisis, HCL offers products and services for local families and native Hawaiians to build, buy and save homes from foreclosure. 

Rates, terms and program details may change without notice. Actual rate and payment depend on credit profile, loan program and timing of lock. Contact HCL for current options.

To apply for a loan, please call HCL at 808-587-7656, or email HCL@hawaiicommunitylending.com.

To learn more, visit www.HawaiiCommunityLending.com.