By Benjamin Finnerty (S), REALTOR® (RS-83812) with Keller Williams Realty Maui · Kīhei, Maui · 808-481-9748

Quick Answer: On a conventional loan, private mortgage insurance (PMI) is required when you put less than 20% down. Freddie Mac estimates PMI at roughly $30 to $70 a month per $100,000 borrowed. On a $660,000 Maui condo, September 2026’s countywide median, 5% down means a $627,000 loan and roughly $188 to $439 a month in PMI.

I’m Benjamin Finnerty, a REALTOR® in Kīhei with Keller Williams Realty Maui, and a common assumption I want to address is that you need 20% down to buy. With Maui prices where they are, 20% is a big number: $132,000 on the median condo and $230,000 on the median single-family home. PMI on a Maui home is the cost of buying with less, and it’s more manageable, and more temporary, than many people assume. Here’s how it works in 2026.

When do you have to pay PMI on a Maui home?

You pay PMI on a conventional loan when your down payment is less than 20% of the purchase price. Freddie Mac states the rule plainly: PMI is required “if you make a down payment less than 20%.” Conventional loans can go as low as 3% down for some buyers through Fannie Mae and Freddie Mac programs, with PMI on top.

FHA loans have their own mortgage insurance premium (MIP), and VA loans have no monthly mortgage insurance, though most VA borrowers pay a funding fee. I covered the VA side in my guide to VA home loans on Maui.

How much is PMI on a Maui condo or home?

PMI cost depends on your loan amount, down payment and credit, so only a lender can quote yours. Freddie Mac’s general estimate is about $30 to $70 per month for every $100,000 borrowed. Here’s what that range looks like at current Maui medians and Freddie Mac’s 7.32% average 30-year rate (Oct. 22, 2026):

Scenario	Loan amount	Principal & interest at 7.32%	PMI range (Freddie Mac estimate)
$660,000 condo, 5% down	$627,000	about $4,307	about $188-$439/mo
$660,000 condo, 10% down	$594,000	about $4,080	about $178-$416/mo
$660,000 condo, 20% down	$528,000	about $3,627	none
$1,150,000 home, 10% down	$1,035,000	about $7,110	about $310-$724/mo
$1,150,000 home, 20% down	$920,000	about $6,320	none

Medians: REALTORS® Association of Maui, September 2026 (countywide condo $660,000; single-family $1,150,000). Rate: Freddie Mac PMMS, Oct. 22, 2026. Estimates exclude taxes, insurance and HOA dues.

All of these loans fall under Maui County’s 2026 conforming loan limit of $1,299,500, so they qualify for standard conventional financing rather than jumbo loans. My post on the Maui conforming loan limit explains where that line falls.

When does PMI go away?

PMI on a conventional loan isn’t permanent. Under the federal Homeowners Protection Act, as explained by the Consumer Financial Protection Bureau (CFPB):

• You can ask to cancel it in writing when your balance reaches 80% of the home’s original value, by schedule or through extra payments, if you’re current, have a good payment history, have no second lien and can show the value hasn’t declined.
• It ends automatically when your balance is scheduled to reach 78% of the original value, if you’re current.
• It can’t run past the midpoint of the loan term, the first day of the month after payment 180 on a 30-year loan, if you’re current.

“Original value” is generally the lower of the purchase price or appraised value. In my rough math on the $660,000 condo with 5% down at 7.32%, the scheduled balance reaches 80% of the original value after about 11 years and 78% after about 12. With 10% down, those points come after roughly 8.7 and 9.9 years. Extra principal payments shorten the request date.

How is FHA mortgage insurance different?

FHA mortgage insurance follows HUD’s rules, not the Homeowners Protection Act. For most 30-year FHA loans, HUD’s Mortgagee Letter 2023-05 set the annual premium at 0.55% when you put down less than 5% (on base loans up to $726,200), with a 1.75% upfront premium. If you put down less than 10%, the annual premium lasts for the life of the loan. Put down at least 10% and it ends after 11 years. Freddie Mac also notes that the 20%-equity cancellation rule doesn’t apply to FHA loans.

That difference matters on Maui. A buyer who expects to stay long term may find a conventional loan with cancelable PMI costs less over time, while FHA can help some buyers qualify. A lender can run both side by side.

Are there ways to avoid or reduce PMI on Maui?

Yes, depending on your situation. Some buyers qualify for down payment help, including the County’s Hale Kamaʻāina Mortgage program, which I cover in my guide to first-time homebuyer programs on Maui. Others choose lender-paid mortgage insurance, which builds the cost into a higher rate and generally can’t be canceled the same way. And some put down exactly 20% to avoid it entirely, if that doesn’t drain their reserves.

General information, not tax, legal or lending advice. Confirm your options with a licensed mortgage lender, and with a CPA or Hawaiʻi attorney on tax or legal questions.

My Take: What I’m Telling Buyers Without 20% Down

Waiting until you have 20% saved is one strategy, but on Maui it can mean waiting years while prices and rates move in ways nobody can predict. PMI is a known, measurable cost, and on a conventional loan it has an end date. I’d rather a buyer compare that cost honestly against the alternative than rule out buying because of a rule of thumb.

My practical steps: ask a lender for a written quote with PMI at 5%, 10% and 20% down so you can see the monthly difference. Keep enough cash after closing for reserves, HOA dues and Maui’s insurance costs, because a bigger down payment isn’t helpful if it leaves you stretched. And if you plan to pay extra principal, ask how the servicer handles PMI cancellation requests so you know the steps in advance.

Frequently Asked Questions

Do I need 20% down to buy a home on Maui?

No. Conventional loans can go as low as 3% down for some buyers, with PMI until you reach the cancellation thresholds. FHA and VA loans have their own rules.

How much is PMI per month on Maui?

Freddie Mac estimates roughly $30 to $70 per month per $100,000 borrowed. On a $627,000 loan, that’s about $188 to $439 a month. Your lender’s quote will depend on your credit and down payment.

When can I remove PMI?

You can request cancellation at 80% of the original value if you meet the conditions. It ends automatically at a scheduled 78%, per the CFPB.

Does FHA mortgage insurance go away?

Only if you put at least 10% down, in which case it ends after 11 years. With less than 10% down, it lasts for the life of the loan.

Ask Benjamin

Trying to figure out whether to buy now with less than 20% down or keep saving? I’m Benjamin Finnerty, and I’m happy to run the numbers on specific Maui properties with you and connect you with local lenders for quotes. Call or text me at 808-481-9748 or email benjamin@the808team.com.

Sources: Freddie Mac, “Breaking Down PMI” (My Home); Freddie Mac Primary Mortgage Market Survey (Oct. 22, 2026); Consumer Financial Protection Bureau, Compliance Bulletin 2015-03 on PMI cancellation and termination; HUD Mortgagee Letter 2023-05 and HUD press release 23-041; REALTORS® Association of Maui, September 2026 market report; FHFA 2026 conforming loan limits.