VA loan rates in Hawaiʻi today average 6.67%, slightly above the U.S. national average of 6.21%. With Oʻahu’s median home price near $900,000, even a small change in mortgage rates can shift monthly payments by hundreds of dollars.
The good news: VA loans remain one of the most powerful tools for service members, veterans, and military families. With $0 down, no PMI, and competitive interest rates, VA financing helps maximize your Basic Allowance for Housing (BAH) while navigating Hawaii’s high-cost housing market.
Current VA Mortgage Rates in Hawaii
Mortgage rates change daily, but here’s how today’s VA loan rates in Hawaii compare with national averages and conventional mortgages:
| Loan Type | Hawaii Average Rate | National Average | Conventional Hawaii |
|---|---|---|---|
| VA 30-Year Fixed | 6.67% | 6.21% | 7.02% |
What this means for you as a veteran or service member:
Buying a $750,000 home in Oʻahu with today’s VA loan rate (6.67%) equals about $4,830/month (principal & interest).
The same loan with a conventional mortgage at 7.02% would cost about $5,000/month (P&I) — plus PMI on top.
That’s nearly $170/month in savings with VA, and even more once you factor in the no PMI advantage.
This is why most veterans and military families in Hawaii find VA loans to be the most affordable path to homeownership.
Why VA Loan Rates in Hawaii Run Higher
Higher Loan Amounts
Oahu’s median home price is well above $800,000. Lenders price risk differently than in states where loans are smaller.
Limited Lender Pool
Fewer VA-focused lenders operate in Hawaii, resulting in less competition and slightly higher average rates.
Market Conditions
Local supply, demand, and inventory constraints all push rates slightly above mainland levels.
Hawaii VA Loan Rates vs. National Rates (2025 Snapshot)
| Loan Type | Hawaii Average Rate | U.S. Average Rate | Difference |
|---|---|---|---|
| VA 30-Year Fixed | 6.67% | 6.21% | +0.46% |
| VA 15-Year Fixed | 6.10% | 5.75% | +0.35% |
| Conventional 30-Year | 7.02% | 6.87% | +0.15% |
Even a 0.5% difference adds up: on a $750,000 VA loan in Oʻahu, that’s about $240/month.
Refinancing with a VA IRRRL in Hawaii
A VA Interest Rate Reduction Refinance Loan (IRRRL) offers a way to lower payments without income checks or a new appraisal.
What is an IRRRL?
A streamlined refinance for veterans with an existing VA loan — often called the “VA Streamline.”
Hawaii Refinance Example
- $800,000 Honolulu VA loan at 7.25% = ~$5,460/mo (P&I)
- Refinanced with IRRRL at 6.25% = ~$4,930/mo
- Savings: $530/month
Local Considerations: Oahu, Maui, Kauai & Big Island
Oahu VA Loan Market
- Highest prices but widest selection of VA-approved condos.
- Popular near Schofield Barracks, Pearl Harbor, and Kaneohe MCBH.
Maui VA Loan Market
- Wailuku and Kihei hot spots.
- Loan sizes trend higher, and VA loan benefits help reduce upfront costs.
Kauai VA Loan Market
- Limited listings in Lihue and Kapaa.
- VA loans make smaller markets more affordable.
Big Island VA Loan Market
- Most affordable island overall.
- Many VA buyers find homes under $600,000 in Hilo and Kona.
FAQs: VA Loan Rates in Hawaii
Are VA loan rates in Hawaii higher than on the mainland?
Yes, by 0.25%–0.5% on average, due to higher loan sizes and fewer lenders.
Can my BAH cover a VA loan in Oahu?
Often yes — especially when buying condos or smaller single-family homes.
Are VA loan rates lower than conventional loans in Hawaii?
Almost always. Even if rates match, the absence of PMI makes VA loans cheaper.
What are today’s VA loan rates in Hawaii?
As of October 3, 2025, VA loan rates in Hawaii average 6.67% (30-year fixed). Rates update daily.
Final Takeaway
VA loan rates in Hawaiʻi today remain one of the strongest benefits available to service members and veterans. While slightly higher than mainland averages, VA loans still deliver unmatched value: $0 down, no PMI, flexible credit standards, and refinance options like the IRRRL.
Next Step: Check your Certificate of Eligibility (COE) and compare current VA loan rates in Hawaiʻi. Whether you’re PCSing, refinancing, or buying your first home in Oʻahu, Maui, Kauaʻi, or the Big Island, VA loans provide the tools to buy with confidence.
Ready to get started? Contact Elias Halvorson, your local VA loan specialist, for personalized guidance on rates, eligibility, and the best loan strategy for your family.
