Mortgage lender closing cost rankings in Hawaii (2025)

Hawaii is a non-judicial foreclosure state that primarily uses deeds of trust, meaning lenders can foreclose through a power-of-sale process without court involvement, though judicial foreclosure remains an available option. Hawaii is not an attorney-closing state; title companies and escrow officers typically conduct closings rather than attorneys. The state imposes a conveyance tax (transfer tax) on real property sales, structured on a tiered rate schedule based on sale price; sellers customarily pay this tax, though terms are negotiable. Hawaii's title insurance market operates under a file-and-use rate system regulated by the state Insurance Division. Prepayment penalties on residential mortgages are restricted under state consumer lending laws, though specific statutory limits should be confirmed with a licensed professional. Hawaii does not have a standalone consumer financial protection bureau separate from the federal CFPB, but the state Division of Financial Institutions oversees mortgage lenders and servicers operating in the state. Buyers should note Hawaii's high property values create proportionally larger dollar-amount closing costs even when percentage-based fees are comparable to mainland markets.

Conventional loans dominate Hawaii's purchase market, accounting for 63.8% of 2024 originations (4,412 loans) at a median rate of 6.625%. VA loans represent a notably large share at 29.8% of volume (2,061 loans), reflecting Hawaii's significant active-duty military and veteran population tied to major installations including Pearl Harbor, Hickam, Schofield Barracks, and Kaneohe Bay. FHA loans make up just 6.0% of originations (412 loans), likely constrained by FHA loan limits relative to Hawaii's high median prices. USDA loans are nearly absent at 0.4% (25 loans), consistent with Hawaii's predominantly urban and high-cost geography leaving few eligible rural areas.