Reverse mortgages in Honolulu
A reverse mortgage works the same in Honolulu County as it does anywhere, but the numbers do not. Below is what the data says about Honolulu owners, and what that means if you are 62 or older and thinking about staying in your home.
| Measure | Honolulu | Hawaii | U.S. |
|---|---|---|---|
| Residents 65 and older | 22% | 22.6% | 18.9% |
| Owner-occupied homes | 48.9% | 63% | 65.2% |
| Median home value | $843,400 | $839,100 | $332,700 |
| Monthly owner costs, no mortgage | $893 | $697 | $638 |
| Monthly owner costs, with mortgage | $3,030 | $2,904 | $1,963 |
| Median household income | $86,504 | $100,389 | $80,734 |
| Veterans | 17,890 | 87,697 | 16,185,883 |
Monthly owner costs are medians and include taxes, insurance, utilities and any mortgage. The Census reports these up to $4,000.
Fee simple or leasehold comes first
Some Hawaii homes sit on leased land. Federal HECM rules let a mortgage cover a leasehold, but the lease must stay in force for a period tied to the borrower's life expectancy, so a short remaining term can stop the loan.
Find your lease and its end date before you do anything else. We check this before you pay for an appraisal.
Paying off the mortgage with a reverse loan in Honolulu
For many retirees, the real job of a HECM is getting rid of an existing payment. In Honolulu County, the median owner with a mortgage spends $3,030 a month on housing, and the median owner without one spends $893.
Your existing loan is paid off at closing from the HECM or your own funds. If the payoff takes up most of the available proceeds, you may have little cash left over, so we run that number first.
Home prices around Honolulu
FHFA's House Price Index shows values in the Honolulu metro area up 11.1% over the past year and +38.6% over five years. That compares with +38.0% statewide over five years, so this area has moved about in line with Hawaii as a whole.
If your home tracked the index, a value of $843,400 today means about $610,000 five years ago. That $230,000 difference is what makes a reverse loan possible for owners who thought they had little to work with.
With prices still climbing, some owners want to lock in access to equity now. A HECM line of credit does not depend on later appraisals, but your balance grows as you draw and interest accrues.
Condo owners have an extra step
A condo in Honolulu needs FHA project approval, or a single-unit approval where the rules allow it. HUD reviews items like owner occupancy, dues delinquency, insurance and litigation.
If your HOA will not provide documents, the loan usually cannot proceed. Ask for the budget, reserve study and master insurance before you spend money on the application.
What a Honolulu County reverse loan does not cover
Your property tax, insurance, HOA dues and repairs stay your responsibility. Honolulu owners without a mortgage report about $893 a month for those kinds of costs and utilities.
Missing them is the most common way a reverse loan goes wrong, so build in a reserve. A home that sits in disrepair can also cause problems, because you agree to keep it maintained.
Property tax help in Honolulu County
Before you borrow against a Honolulu home, see whether a tax program covers the gap. Property tax in Hawaii is set by each county, not the state, so ask the Honolulu County real property office what exemption applies at your age. In Honolulu, the exemption for owners 65 and older has been $160,000, and Bill 4 (2025) proposed raising it to $180,000 for later tax years. See the full Hawaii reverse mortgage guide.
The rules in brief
You need to be 62 or older, live in this Honolulu home as your main residence, and complete HUD-approved counseling first (call 1-800-569-4287 to find a counselor). Repayment is triggered when the last borrower moves out, sells or passes away. For costs and spouse rules, read our reverse mortgage guide. If you would rather compare, see our HELOC page or the Honolulu mortgage page.
More in Hawaii: Waipahu, Kailua, Kaneohe, Pearl City, East Honolulu, Mililani Town.
Sources: U.S. Census Bureau QuickFacts (American Community Survey 2020-2024, population estimates July 2025). FHFA House Price Index, 2026 Q2. HUD 2026 HECM limit.
Common questions
Can I get a reverse mortgage on my Honolulu home?
Generally yes, if the home in Honolulu County is your main residence, all borrowers are at least 62, there is enough equity, and it passes an FHA appraisal. You also complete counseling and a financial assessment.
Does the HECM limit matter for a Honolulu home?
Most are comfortably under it. The 2026 limit is $1,249,125, and the Honolulu median is $843,400, so proceeds are driven by your age, the appraisal and rates rather than the cap.
How much have home values risen near Honolulu?
FHFA shows Honolulu metro at +11.1% over one year and +38.6% over five years as of the second quarter of 2026.
Who still pays the Honolulu County property tax bill?
You do. On a reverse mortgage you keep paying property taxes, insurance and upkeep. If you do not, the loan can become due.
Bayview Residential is a mortgage broker and is not affiliated with HUD or FHA. A reverse mortgage is a loan that must be repaid, and the balance grows over time. You must keep paying property taxes, insurance and home maintenance, and live in the home as your principal residence. All loans are subject to eligibility and approval. This page is general information and not legal, tax or benefits advice.