Hawaii Closing Costs Guide 2026
This Hawaii closing costs guide covers what buyers and sellers pay at closing in Hawaii — fee-by-fee breakdowns, sample cost estimates by purchase price, and tips for reducing your total cash to close.
Buyer Closing Costs in Hawaii
Hawaii buyer closing costs typically run 1%–2% of the purchase price on cash purchases and 2%–4% with financing. Hawaii uses an escrow-only closing model — a neutral escrow company holds funds and documents, and no attorney is required — which keeps transaction costs more predictable than in attorney-required states. On a $700,000 purchase, expect to budget roughly $14,000–$28,000 in closing costs if financed, not including your down payment.
| Fee | Typical Range | Paid To | Notes |
|---|---|---|---|
| Loan origination fee | 0.5%–1.2% of loan | Lender | Varies by lender |
| Appraisal fee | $700–$1,100 | Appraiser | Higher than mainland average; higher still for neighbor-island or unique properties |
| Credit report fee | $25–$75 | Lender | Usually a pass-through cost |
| Lender’s title insurance | $600–$1,200 | Title/escrow company | Required by lender; protects lender only |
| Owner’s title insurance | — | Title/escrow company | Customarily paid by the seller in Hawaii |
| Escrow / settlement fee | $500–$1,200 (buyer share) | Escrow company | Typically split 50/50 between buyer and seller; negotiable |
| Recording fees | $100–$250 | Bureau of Conveyances | Hawaii records land documents through a centralized state bureau |
| Conveyance tax | 0.10%–1.00% (owner-occupant) | State of Hawaii | Customarily paid by the seller, not the buyer |
| Home inspection | $400–$700 | Inspector | Optional but strongly recommended; paid before closing |
| Homeowner’s insurance (prepaid) | $1,200–$2,500+ | Insurance company | First year paid upfront; hurricane coverage adds cost |
The conveyance tax is customarily a seller cost. Unlike many state transfer taxes that fall on the buyer, Hawaii’s real estate conveyance tax is customarily paid by the seller. This is a meaningful difference from states like Connecticut or Florida — verify the allocation in your specific purchase contract, since it is negotiable.
Seller Closing Costs in Hawaii
Hawaii sellers typically pay 7%–9% of the sale price in total closing costs, with real estate agent commissions making up the largest portion, followed by the conveyance tax and owner’s title insurance.
| Fee | Typical Range | Notes |
|---|---|---|
| Real estate agent commissions | 5%–6% of sale price | Largest seller cost; negotiable |
| Conveyance tax | 0.10%–1.00% of sale price (owner-occupied buyer); 0.15%–1.25% (non-owner-occupied buyer) | Graduated by price tier; collected through escrow |
| Owner’s title insurance | Based on sale price | Customarily paid by seller; protects buyer from title defects |
| Escrow / settlement fee | $500–$1,200 | Often split with buyer per contract |
| HARPTA withholding (non-resident sellers) | 7.25% of sale price | Withheld at closing; refundable via Hawaii tax return if actual gain is lower |
| FIRPTA withholding (foreign sellers) | 15% of sale price | Federal withholding requirement for foreign sellers |
| Prorated property taxes | Varies | Seller pays their share for the portion of year they owned the home |
HARPTA catches out-of-state sellers off guard. If you’re selling Hawaii property but are not a Hawaii resident, 7.25% of the gross sale price is withheld at closing under HARPTA (Hawaii’s version of FIRPTA). This is a withholding against your eventual tax liability, not an additional tax — you can apply for a refund of any excess when you file, but budget for the cash-flow impact at closing.
Hawaii’s Real Estate Conveyance Tax
Unlike many mainland states, Hawaii does levy a real estate transfer tax — it is called the conveyance tax, and it is one of the larger line items on a Hawaii settlement statement. The tax is owed by the seller (the grantor), and it is charged per $100 of the property’s value on a graduated scale. The rate depends on the sale price and on whether the buyer is eligible for a county homeowner’s exemption — buyers who will not occupy the home as a primary residence trigger the higher column.
| Property Value | Rate per $100 (buyer eligible for homeowner’s exemption) | Rate per $100 (not eligible) |
|---|---|---|
| Less than $600,000 | $0.10 (0.10%) | $0.15 (0.15%) |
| $600,000 to less than $1,000,000 | $0.20 (0.20%) | $0.25 (0.25%) |
| $1,000,000 to less than $2,000,000 | $0.30 (0.30%) | $0.40 (0.40%) |
| $2,000,000 to less than $4,000,000 | $0.50 (0.50%) | $0.60 (0.60%) |
| $4,000,000 to less than $6,000,000 | $0.70 (0.70%) | $0.85 (0.85%) |
| $6,000,000 to less than $10,000,000 | $0.90 (0.90%) | $1.10 (1.10%) |
| $10,000,000 or more | $1.00 (1.00%) | $1.25 (1.25%) |
The minimum conveyance tax is $1.00 per transaction. On a $900,000 Honolulu purchase where the buyer will claim the homeowner’s exemption, the seller owes roughly $1,800; if the buyer is an investor or second-home purchaser, the same sale costs the seller about $2,250. Rates and the certificate requirement are published by the Hawaii Department of Taxation, which also supplies Form P-64A/P-64B that must accompany recording.
Title Insurance in Hawaii
Two separate title policies are typically issued in a Hawaii closing, and by local custom they are paid by different parties. Hawaii’s split is the reverse of what many mainland buyers expect: the seller normally buys the policy that protects the buyer.
| Policy | Who Customarily Pays | What It Covers |
|---|---|---|
| Owner’s policy (standard coverage) | Seller | Protects the buyer’s ownership interest against recorded defects — prior mortgages, liens, judgments and recorded easements that were missed in the title search. |
| Lender’s policy (extended coverage) | Buyer | Required by the lender when you finance. Adds protection for unrecorded matters such as owners not shown on the deed, unrecorded easements, encroachments and boundary issues. |
Custom is not law — who pays for each policy is ultimately whatever your purchase contract says, and the allocation is negotiable. Practice also varies somewhat by island, so confirm the split in writing before you sign.
Escrow and Closing Process in Hawaii
Hawaii is an escrow state, not an attorney-closing state. Your transaction is handled by a neutral escrow company — usually affiliated with a title insurer — that holds the deposit, collects documents and funds from both sides, and records the deed. The seller customarily selects the escrow company, and the escrow fee is customarily split between buyer and seller, though both points are negotiable in the purchase contract. Most Hawaii escrows run 30 to 60 days from accepted offer to recording.
- Escrow opens. The signed purchase contract and your initial deposit go to the escrow company, which issues an escrow number and instructions to both parties.
- Title search and preliminary report. The title company researches the chain of title and issues a preliminary report listing liens, easements and exceptions. Review this carefully — Hawaii properties frequently carry leasehold interests, CPR (condominium property regime) documents and shoreline or agricultural restrictions.
- Lender underwriting and appraisal. Your loan file is underwritten while the appraisal is ordered. This is typically the longest phase and the one most likely to extend the closing date.
- Signing and recording. You sign final loan and escrow documents, wire your remaining cash to close, and the deed and mortgage are recorded with the State of Hawaii Bureau of Conveyances. Recording — not signing — is the moment ownership legally transfers.
Sample Closing Cost Estimates by Purchase Price
The following estimates are for buyer closing costs only (not down payment), assuming a conventional loan with 10% down and average Hawaii fee ranges, excluding the conveyance tax (which is customarily seller-paid).
| Purchase Price | Low Estimate (2%) | Mid Estimate (3%) | High Estimate (4%) |
|---|---|---|---|
| $600,000 | $12,000 | $18,000 | $24,000 |
| $800,000 | $16,000 | $24,000 | $32,000 |
| $1,000,000 | $20,000 | $30,000 | $40,000 |
| $1,200,000 | $24,000 | $36,000 | $48,000 |
| $1,500,000 | $30,000 | $45,000 | $60,000 |
These are estimates only. Actual closing costs depend on your lender, escrow company, loan type, closing date, island, and what’s negotiated in your purchase contract. Always request a Loan Estimate from your lender within 3 business days of application, and review your Closing Disclosure carefully at least 3 days before closing.
How Loan Type Affects Closing Costs in Hawaii
| Loan Type | Key Closing Cost Difference | Impact |
|---|---|---|
| Conventional | No upfront MIP; no funding fee | Lowest closing costs if 20%+ down |
| FHA | 1.75% upfront MIP added to loan | Adds $10,000+ on typical Oʻahu-priced purchases |
| VA | 2.15% funding fee (first use, 0% down) | Adds $12,000–$28,000 depending on loan amount; exempt if receiving disability compensation |
| USDA | 1.0% upfront guarantee fee | Adds several thousand dollars on a typical eligible rural Hawaii purchase |
FHA and VA upfront fees can be financed. Both FHA’s 1.75% upfront MIP and VA’s funding fee can be rolled into the loan amount rather than paid as cash at closing. This increases the loan balance but reduces the cash needed at close — a useful option for buyers with limited liquid savings given Hawaii’s higher overall loan amounts.
How to Reduce Your Hawaii Closing Costs
- Compare lenders: Origination fees and lender credits vary significantly between lenders. Getting 2–3 Loan Estimates is the single most effective way to reduce lender-side closing costs. This is where working with an experienced Brokered Mortgage Advisor can help you save time and money throughout your transaction, by shopping rates and costs with several different lenders before your loan package is submitted.
- Shop escrow companies. In Hawaii, buyers and sellers can often influence the choice of escrow company. Fees vary between providers — ask for itemized quotes.
- Negotiate the conveyance tax allocation. While the conveyance tax is customarily seller-paid, allocation is technically negotiable in the purchase contract — confirm this explicitly rather than assuming.
- Negotiate seller concessions. In slower or balanced markets, sellers may agree to credit buyers for part of closing costs. This is written into the purchase contract and reduces your cash to close.
- Use HHFDC down payment assistance. HHFDC’s DPA second mortgage can cover closing costs as well as the down payment for qualifying first-time buyers.
- Ask about lender credits. Some lenders offer lender credits (in exchange for a slightly higher rate) that offset closing costs. Worth evaluating given Hawaii’s higher fixed closing costs (appraisal, escrow).
- Check VA disability exemption. If you’re a veteran using a VA loan and receive disability compensation, you pay zero funding fee — a substantial savings given Hawaii’s higher loan amounts.
