One way to buy an inexpensive home in Hawaii is to make the purchase through a government-sponsored program, according to the Hawaii Public Housing Authority. Government programs in Hawaii include Federal Public Housing, State of Hawaii Public Housing and the State of Hawaii Rental Supplement Program.
Another option for inexpensively buying a home in Hawaii is to purchase the home using resources provided by the U.S. Department of Housing and Urban Development, or HUD. HUD offers various buying assistance programs and vouchers as well as reduced-price homes for sale. Additionally, HUD offers referrals to counseling services that can help prospective buyers deal with issues such as predatory lenders, credit problems, securing an appropriate mortgage and how to handle home repairs.
The U.S. Department of Agriculture-RD offers programs that provide the opportunity for low-income households to purchase modest, single-family homes. Income-eligible and approved applicants receive a 90 percent loan guarantee from the program's approved lenders and may use the funds to purchase a home in a designated eligible area that the program serves, explains the USDA-RA website. Funds may also be used to pay closing costs, home refinancing or repairs, and a portion of the real estate taxes. Applicants for the guaranteed loan program must locate an approved lender to get started with the application process.