Buying a Home in Maui —
Every Question, Answered

Fee simple is the most complete form of ownership: you own the land and the structure on it outright, with no time limit. It's the standard for most homes on the mainland and the preferred option in Hawaii as well.

Leasehold means you own the building (or unit) but lease the underlying land from a landowner — often a large estate, trust, or Hawaiian homelands organization — for a set term, typically 55 to 65 years. Lease rent can be renegotiated at intervals, sometimes dramatically increasing costs.

• Leasehold properties are often priced lower — but that discount comes with risk.
• Many lenders won't finance a leasehold with fewer than 30 years remaining on the lease.
• Resale can be challenging if the lease expiration is approaching.
• Leasehold is common in certain Honolulu and Ko Olina (O'ahu) condo buildings; it exists on Maui but far less frequently.

Hawaii's USGS Lava Hazard Zone map rates volcanic risk on a scale of 1 (highest) to 9 (lowest). Maui is generally in Zones 3–9, with most residential areas in Zones 6–9, well away from active volcanic rift zones. Maui is far safer than the Big Island in this regard.

Why it matters when buying:

• Insurance: Homeowners insurance rates (and availability) can vary by zone. Lava zone 1–2 properties are often uninsurable through standard carriers.
• Financing: Some lenders restrict lending in higher lava risk zones.
• Resale & value: Buyers will scrutinize zone classification during their due diligence.

Always verify the lava zone of any property with the USGS map and review the Seller's Disclosure Statement, which requires the seller to disclose the zone designation.

Buyers in Maui generally pay 2–4% of the purchase price in closing costs. On a $1M home, that's $20,000–$40,000 beyond the down payment. Common costs include:

• Title insurance: Owner's and lender's policies (one-time fee, protects against title defects)
• Escrow/closing fees: Paid to the title or escrow company
• State conveyance tax: Hawaii's documentary stamp tax (tiered, based on purchase price)
• Recording fees: County fee to record the deed
• Lender/mortgage fees: Origination, underwriting, appraisal, credit report
• Prepaid items: Homeowners insurance premium, property tax prorations, mortgage interest
• HOA transfer and setup fees: For condos or planned communities

The Maui home buying process follows this general timeline:

• 1. Pre-approval: Get a mortgage pre-approval letter from a lender (or proof of funds for cash buyers). Essential before writing any offer.
• 2. Hire a local buyer's agent: A skilled Maui agent like Katrina Wilson represents your interests at no cost to you — the seller pays the commission.
• 3. Property search: Tour homes matching your criteria — community, lifestyle, budget, and property type.
• 4. Make an offer: Your agent submits a written offer with earnest money (typically 1–3% of purchase price).
• 5. Negotiate & execute: Counter-offers may follow. Once both parties sign, you're in escrow.
• 6. Inspection period: Typically 10–15 days in Hawaii. Order home, pest, roof, and any specialty inspections.
• 7. Review documents: HOA documents, condo docs, seller disclosures, title report, and lease (if leasehold).
• 8. Finalize financing: Lender completes appraisal and underwriting.
• 9. Final walkthrough: Confirm property condition before closing.
• 10. Close: Sign documents, fund the transaction, deed records — you get the keys!

Yes, but the financing terms differ from a primary residence mortgage:

• Vacation/second home loans: Typically require 10–20% down and slightly higher interest rates than primary residence loans. The property must be livable year-round and you must have reasonable plans to use it personally.
• Investment property loans: Usually require 20–30% down, with higher interest rates. Projected rental income can be counted toward qualifying income in some cases.
• Condo financing quirks: Many Maui resort condo projects are in "non-warrantable" buildings, meaning Fannie Mae/Freddie Mac won't back the loan. You'll need portfolio or non-QM financing — Katrina's network of local lenders specialize in exactly this.
• Jumbo loans: Most Maui properties exceed conforming loan limits, so jumbo financing is standard here.

Maui County uses a tiered property tax classification system. The rate you pay per $1,000 of assessed value depends on how the property is used:

• Owner-Occupied (Homeowner Exemption): The lowest rate — approximately $2.00–$2.60 per $1,000 AV. You must occupy the home as your primary residence and file for the exemption by the December 31 deadline before the tax year.
• Non-Owner-Occupied Residential: Significantly higher — roughly $5.70–$6.00+ per $1,000 AV.
• Short-Term Rental / Hotel & Resort: The highest residential rates — can exceed $10–$14 per $1,000 AV, depending on the county's current rate schedule.
• Agricultural: Very low rates, but stringent eligibility rules apply.

Rates are set annually by the Maui County Council and assessed values are determined by the Real Property Assessment Division. Always verify current rates at the Maui Real Property Tax site before budgeting.

No — many buyers, especially those purchasing from the mainland or internationally, complete significant portions of the transaction remotely. Here's what can be done remotely:

• Property tours via FaceTime/Zoom (Katrina can do live walk-throughs for you)
• Offer writing and negotiation
• Reviewing inspection reports, HOA documents, and disclosures
• Remote/mobile loan notarization in most states
• Remote closing via power-of-attorney in some cases

However, visiting at least once before closing is strongly recommended to fully experience the community, traffic, sun exposure, and neighborhood character — details that don't show up in photos.

Condos are extremely popular in Maui's resort areas (Wailea, Ka'anapali, Napili, Kihei). They're often more affordable entry points and require less maintenance. Many allow short-term vacation rentals (with proper permits), making them attractive investment vehicles. The trade-off: HOA fees, shared walls, and rules.

Single-family homes offer more privacy, land ownership, and potential for ADUs (extra rental income). They require more maintenance and upfront cost but offer greater autonomy and long-term land appreciation.

• Condos: often better for investors and part-time residents
• SFR: better for full-time residents, families, and long-term lifestyle buyers
• Condo financing can be more complex (non-warrantable buildings common in resort areas)
• HOA fees in luxury resort condos can run $1,000–$3,000+/month

An Accessory Dwelling Unit (ADU) — sometimes called an 'ohana unit in Hawaii — is a secondary residential structure on the same lot as the primary home. ADUs are a powerful wealth-building tool because they can generate rental income while you live in the main home.

Maui County allows ADUs on eligible residential lots, but rules vary by:

• Zoning designation (R-1, R-2, R-3, A-1, A-2, etc.)
• Lot size minimums
• Setback requirements
• Existing structures on the parcel
• Whether the ADU is attached or detached

Short-term rentals in ADUs are governed by separate Maui County STR permit rules — not all ADUs can be legally used as vacation rentals.

Maui homeowners typically need several types of insurance:

• Homeowners Insurance (HO-3 or HO-6 for condos): Covers structure, personal property, and liability. Premiums have risen significantly post-Lahaina fire. Budget $3,000–$10,000+/year depending on location, home value, and construction type.
• Flood Insurance: Required if the property is in a FEMA-designated Special Flood Hazard Area. Maui has flood zones along coasts and stream corridors. Check the FEMA flood map before making an offer.
• Hurricane/Windstorm: Increasingly important post-2023. Some policies require a separate hurricane deductible (often 2–5% of dwelling value).
• Lava/Volcanic Activity: Most standard policies exclude lava damage. Additional coverage may be available through specialty carriers, especially in higher lava zones.

For condos, the HOA carries a master policy covering the building shell — but you still need an HO-6 policy for your interior and personal liability.

Yes — Hawaii has several programs to assist first-time buyers:

• Hawaii HomeOwnership Center (HHOC): Offers down payment assistance loans, homebuyer education courses, and counseling. Some programs provide 0% interest deferred loans for down payment and closing costs.
• HHFDC (Hawaii Housing Finance and Development Corporation): Administers affordable housing programs and may offer below-market mortgage rates for qualifying buyers.
• USDA Rural Development: Certain Maui communities qualify for USDA 100% financing for primary residences at lower income thresholds.
• VA Loans: Veterans can purchase with zero down payment — a powerful tool in Maui's high-cost market.
• FHA Loans: Lower down payment (3.5%) and more flexible credit requirements, though the property must meet FHA standards.

Income limits, purchase price caps, and eligibility rules apply to all assistance programs. The high cost of Maui real estate means many buyers won't qualify, but it's always worth exploring.

HARPTA (Hawaii Real Property Tax Act) is a withholding tax applied when a Hawaii property is sold by a non-resident. At closing, the escrow company withholds 7.25% of the gross sales price from the seller's proceeds, which is remitted to the state.

As a buyer, this primarily affects you in one scenario: if you purchase a property from a non-resident seller who hasn't complied with HARPTA rules, the buyer can be held liable for the withholding. Your escrow officer and title company will manage this automatically, but it's worth understanding.

If you buy and later sell as a non-resident, you'll be subject to HARPTA at that future sale. If you're a Hawaii resident at the time of sale, HARPTA does not apply.

Maui's real estate market has historically favored sellers due to constrained land supply, strong demand from both residents and investors, and limited new construction. Even in slower periods nationally, Maui rarely sees dramatic price drops because:

• Geographic scarcity: Maui simply can't build unlimited supply
• Consistent demand from high-net-worth buyers, retirees, and remote workers
• Resort area properties maintain value well even in downturns

Post-2020, Maui experienced a significant price run-up. Post-Lahaina fire (2023), the West Maui market has seen complex dynamics. Interest rate levels continue to influence buyer activity.

Maui County zoning determines what you can and can't do with a property. Key residential and mixed designations include:

• R-1 through R-3: Standard residential zones with increasing density. Dictates minimum lot sizes, ADU rules, and setbacks.
• A-1/A-2: Apartment zones. Multi-family dwellings permitted.
• B-1/B-2: Neighborhood and community business zones.
• H-M (Hotel-Multi Family): Common in resort corridors — allows hotels, condos, and vacation rentals.
• AG (Agricultural): Allows farming and some residential use on large lots. Very low property tax, strict eligibility.
• Rural: Larger lots, limited development, unique character — popular in Upcountry.

For vacation rental investors, zoning is critical: STR permits are generally only available in specific zones and hotel-designated areas. Always confirm zoning before making an offer if short-term rental income is part of your plan.

FEMA's National Flood Insurance Program (NFIP) maps designate areas into flood zones based on risk. In Maui, flood zones are most common along coastlines, streams, and low-lying areas in Central Maui.

• Zone AE / VE: High-risk Special Flood Hazard Areas (SFHA). Federally-backed mortgage lenders require flood insurance. Annual costs can range from $1,000–$5,000+ depending on coverage amount and elevation.
• Zone X: Moderate to low risk. No mandatory flood insurance, but highly recommended for coastal areas.

The Seller's Disclosure Statement requires disclosure of any known flood zone designation. You can also look up any parcel on the FEMA Flood Map Service Center (msc.fema.gov).

Climate change is gradually expanding flood risk zones in some areas — factor this into long-term ownership planning.

A thorough inspection is your primary consumer protection in Maui real estate. Recommended inspections include:

• General Home Inspection: Structural, electrical, plumbing, HVAC, roof, windows, and more. Always the starting point.
• Pest/Termite Inspection: Termites are a serious issue in Hawaii's tropical climate. A clear pest report is critical.
• Roof Inspection: Maui's sun, salt air, and trade winds are hard on roofing materials. Get a specialist to assess remaining life.
• Sewer/Septic: Many Maui properties, especially in rural areas, have cesspools or septic systems. Cesspool conversion to septic will be legally required over time.
• Mold/Air Quality: High humidity environments like Maui's windward side can foster mold issues inside walls and crawlspaces.
• Chimney/Fireplace: For upcountry homes with fireplaces.
• Pool/Spa: If applicable.
• Structural Engineering: For older homes or any concerns flagged by the general inspector.

Homeowners Associations (HOAs) are extremely common in Maui — virtually all condo complexes and many planned neighborhoods have them. Before you buy, understand:

• Monthly fees: Range from $200/month for a simple condo to $3,000+/month for luxury resort properties with pools, security, and resort amenities.
• What's covered: Varies widely — some include water, cable, exterior maintenance, pest control; others are bare-bones.
• Reserve fund: A healthy reserve fund means the HOA can cover major repairs without a special assessment. Request the most recent reserve study.
• Rules and restrictions: Pet policies, rental restrictions, renovation approvals, parking — review the CC&Rs carefully.
• Pending litigation: Active lawsuits against the HOA can affect your ability to get financing and could result in cost-sharing among all owners.
• Special assessments: Large repair projects (roof replacement, elevator overhaul) can result in one-time charges of thousands to tens of thousands of dollars.

The "best" neighborhood depends entirely on your lifestyle and goals. Here's a quick primer:

• Wailea: Luxury resort living, world-class beaches, golf courses, fine dining. Premium price point. Great for vacation homes and luxury investment.
• Ka'anapali / Lahaina area: West Maui's iconic resort corridor. Recovery underway post-fire; strong long-term value play. Ocean views and resort amenities.
• Kihei: South Maui's most affordable entry point. Great beach access, central location, mix of condos and homes. Popular with young families and budget-conscious buyers.
• Napili / Kapalua: North Kāʻanapali — quieter, lush, beautiful. Mix of condos and homes. Strong rental potential.
• Upcountry (Kula, Makawao, Haiku): Cooler climate, large lots, farms, authentic Hawaii lifestyle. Great for full-time residents who love nature and community.
• Kahului / Wailuku: Central Maui hub. Most affordable prices, best schools, local community feel. Ideal for full-time residents.
• Haiku / Paia: North Shore lifestyle — surf culture, lush landscapes, organic farms. Eclectic community.

It depends on the price point, neighborhood, and current inventory levels. In general:

• Under $1.5M: Higher competition, especially for move-in-ready homes. Multiple-offer situations are common. Strategic pricing and a clean, well-structured offer matter.
• $1.5M–$3M: Moderate competition. Room to negotiate, but a strong offer is still important.
• $3M+: Less competition. More negotiating room. Buyers can often take more time.

Strategies that strengthen your offer without necessarily going above list price:

• Providing a pre-approval letter (or proof of funds) upfront
• Shortening inspection periods and contingency timelines
• Being flexible on closing dates to accommodate the seller
• Writing a personal buyer letter (though less impactful now)
• Minimizing contingencies where your risk tolerance allows

Hawaii's conveyance tax (documentary stamp tax) is a real estate transfer tax levied on the seller but sometimes negotiated to be shared. It's calculated on a tiered basis by the sales price:

• Up to $600,000: $0.10 per $100 of sales price
• $600,001–$1,000,000: $0.20 per $100
• $1,000,001–$2,000,000: $0.30 per $100
• $2,000,001–$4,000,000: $0.50 per $100
• $4,000,001–$6,000,000: $0.70 per $100
• Over $10,000,000: $1.25 per $100 (highest tier)

Note: Rates are subject to change by the Hawaii Legislature. On a $1.5M sale, the tax would be approximately $4,500. Verify the current rate schedule with your title company at the time of purchase.

Living in Maui full-time is genuinely extraordinary — but it comes with real-world considerations that a vacation never reveals. Here's an honest picture:

• The incredible: World-class beaches at your doorstep, year-round sunshine (or lush green, depending on your side of the island), tight community bonds, fresh local produce, whale season from January–March, and a slower, more intentional pace of life.
• Cost of living: Maui is among the most expensive places in the U.S. Groceries, dining, utilities, and services cost 30–60% more than the mainland average. Gas is expensive. Construction costs are very high.
• Traffic: Maui's road infrastructure is strained. Commutes on the central corridor can be frustrating. West Maui road access can be limited.
• Island fever: Some people love island life; others miss the pace and variety of the mainland. Visit multiple times before committing.
• Career opportunities: Remote work has transformed this equation — but traditional career paths are limited on-island.

Requirements vary by loan type:

• Conventional (primary residence): Typically 620+ credit score, 3–20% down. Below 20% requires PMI.
• Jumbo loans (most Maui purchases): Usually 700–720+ credit score required; 20–30% down is standard for best rates.
• FHA: 580+ for 3.5% down; 500–579 with 10% down. Must be primary residence.
• VA (veterans): No minimum credit score set by VA, but lenders typically require 620+. Zero down payment.
• Non-warrantable condos / Non-QM: More flexible but often require stronger credit and down payment to offset risk.

A higher credit score always translates to a lower interest rate — on a $800K jumbo loan, even a 0.5% rate improvement can save $50,000+ over the loan term.

Yes — there are no restrictions on foreign nationals purchasing U.S. real estate, including in Hawaii. However, there are important financial and tax considerations:

• Financing: U.S. mortgages are difficult to obtain without a U.S. Social Security Number and credit history. Many international buyers purchase all-cash or use foreign national mortgage programs (which require larger down payments and higher rates).
• FIRPTA: The Foreign Investment in Real Property Tax Act requires the buyer to withhold 15% of the gross sales price when a foreign seller closes — this is remitted to the IRS. The seller can file to reduce or eliminate the withholding if their tax liability is lower.
• HARPTA: Hawaii's equivalent of FIRPTA — 7.25% withholding from non-Hawaii-resident sellers.
• Tax filing: Foreign owners of U.S. rental property are subject to U.S. income tax on rental income and must file annual returns with the IRS.
• Estate planning: Foreign-owned U.S. real estate may be subject to U.S. estate tax. Consult an international tax attorney early.

Short-term vacation rentals (STVRs) in Maui are heavily regulated and legally complex. Here's the short version:

• Hotel/Resort Zones (H-M): STVRs are generally permitted with the appropriate tax registration. Most resort condos in Ka'anapali, Wailea, and Kihei resort corridors fall here.
• Residential Zones: STVRs are generally NOT permitted in R-1/R-2 residential zones. Operating one without a permit is illegal and carries significant fines.
• Hosted rentals / B&Bs: Owner-occupied STVRs (where the owner lives on-site) have separate rules and may be permitted in more zones with a Special Use Permit (SUP) or B&B license.
• GET & TAT: All STR operators must collect and remit Hawaii's General Excise Tax (GET) and Transient Accommodations Tax (TAT) — now also including a Maui County surcharge.

Important: Maui County has aggressively cracked down on unpermitted STVRs in recent years. Always verify permitted status before buying a property for its rental income potential.

Online listings show you what's available — but they don't tell you what matters in Maui's unique market:

• Off-market deals: A large share of Maui's best properties never hit the MLS. Agent networks are how you access them.
• Local knowledge: Sun exposure, trade wind patterns, road noise, flood history, neighbor situations — only a local agent who has physically visited hundreds of properties can flag these.
• Legal complexity: Leasehold, cesspool conversions, HARPTA, FIRPTA, STR permits, AG lot rules — you need someone who navigates these daily.
• Negotiation: Online searches can't negotiate price, terms, or contingencies on your behalf.
• Vendor network: Inspectors, lenders, title officers, attorneys, contractors — you need vetted local referrals.
• It costs you nothing: In Hawaii, the seller pays the buyer's agent commission. Having expert representation is free to the buyer.