Private Money Hawaii
Hard Money Loan Limits vs DSCR vs Bank Loans: What You Can Borrow (and How Fast)
Quick Summary
Hard money loans typically offer fast funding with moderate loan limits, DSCR loans provide higher leverage based on rental income, and bank loans offer the lowest rates but strict caps and slow approvals. The best option depends on speed, property type, and exit strategy.
TL;DR
- Hard money: fastest closings, flexible limits, asset-based
- DSCR loans: income-based, scalable for rentals
- Bank loans: lowest rates, strict caps, slow process
- Hawaiʻi investors often stack loans to maximize leverage and speed
Key Takeaways
- Hard money prioritizes speed and certainty
- DSCR prioritizes income and scale
- Bank loans prioritize low cost and compliance
- The “best” loan depends on timing, exit, and leverage goals
- Smart investors use the right loan at the right phase
Hard Money Loan Limits vs DSCR vs Bank Loans: The Core Differences
Understanding how much you can borrow, and how quickly, is critical in competitive Hawaiʻi real estate markets. While all three options fund property purchases, their loan limits, underwriting logic, and timelines are fundamentally different.
1. Hard Money Loans: Speed First, Flexible Limits
Typical Loan Limits
- $250,000 to $5,000,000
- Some private lenders exceed $10M for strong assets
How Limits Are Calculated
- 60%–70% of as-is value, or
- 65%–75% of ARV (fix-and-flip deals)
Why Hard Money Wins
- Closings in 5–10 days
- Minimal documentation
- Asset-based underwriting
Where It Falls Short
- Higher rates than DSCR or banks
- Short loan terms (6–24 months)
Best for: Flips, bridge deals, time-sensitive acquisitions, distressed properties.
2. DSCR Loans: Rental Income Drives the Limit
Typical Loan Limits
- $1,000,000 to $5,000,000 per property
- Portfolio caps often reach $10M+
How Limits Are Calculated
- Debt Service Coverage Ratio (DSCR)
- Rental income vs monthly debt payment
- Typical max LTV: 70%–80%
Why DSCR Wins
- No personal income verification
- Long-term financing (30–40 years)
- Better rates than hard money
Where It Falls Short
- Slower than hard money (30–45 days)
- Requires stabilized rent
- Sensitive to insurance & tax increases
Best for: Buy-and-hold investors scaling rental portfolios.
3. Bank Loans: Lowest Rates, Tightest Caps
Typical Loan Limits
- Conforming loan caps (subject to annual limits)
- Commercial loans vary but require strong balance sheets
How Limits Are Calculated
- Borrower income & DTI
- Appraisal & seasoning
- Global cash flow analysis
Why Banks Win
- Lowest interest rates
- Long terms and stability
Where They Lose
- 45–90 day closings
- Strict property condition requirements
- Heavy documentation
Best for: Primary residences or seasoned investors with time and clean financials.
Side-by-Side Comparison Table
| Feature | Hard Money | DSCR | Bank Loan |
| Typical Loan Limit | $250K–$5M | $1M–$10M+ | Regulated caps |
| Approval Speed | 5–10 days | 30–45 days | 45–90 days |
| Underwriting | Asset-based | Income-based | Borrower-based |
| Credit Score | Less critical | Moderate | Critical |
| Property Condition | Flexible | Stabilized | Strict |
| Rates | Highest | Mid-range | Lowest |
Which Loan Lets You Borrow the Most?
In practice:
- Short term → Hard money unlocks fast capital
- Mid-to-long term → DSCR maximizes scalable leverage
- Lowest cost → Bank loans, if you can qualify and wait
Many experienced Hawaiʻi investors combine all three:
- Buy with hard money
- Refinance into DSCR
- Use banks for long-term stability
This layered approach maximizes both speed and total borrowing power.
Why Loan Limits Are Often Higher in Hawaiʻi
Hawaiʻi’s high property values change the math:
- Higher appraisals → higher loan ceilings
- Strong demand → lender confidence
- Scarcity → premium leverage opportunities
That’s why private real estate lending in Hawaiʻi often outperforms mainland markets when structured correctly.
Final Thought
Winning in Hawaiʻi real estate isn’t about chasing the lowest rate; it’s about closing when it matters and refinancing when it’s smart.
That’s local lending expertise translate into smarter capital stacking and faster deal execution.
If you’re deciding between hard money loan, DSCR, or bank financing, you can request a free, no-obligation loan strategy review.
We’ll analyze your deal, timeline, and exit plan to show:
- Which loan fits now
- How much can you borrow
- When to refinance for a lower cost
Explore your options with private lending in Hawaiʻi, no pressure, no obligation, just clarity.
Offering Rates Starts at 9%
At Private Money Hawaii, we are proud to fund commercial properties, multi-family residential, investment residential properties, fix and flip projects, land, and construction in Honolulu and across the Hawaii Islands.
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From fix-and-flip loans in Oʻahu to bridge loans in Honolulu, DSCR rental financing, and construction loans across Hawaii, we customize terms around your project’s needs. With interest-only payment options, LTV up to 70%, and clear origination fees, you’ll have flexible funding that works for you.
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Led by veteran lender David Ige, with nearly 30 years of experience funding Hawaii investment property loans, we combine deep local insight with transparent terms to help investors succeed.
Private Money Hawaii
Address: 411 Hobron Ln #3912, Honolulu, HI 96815
Call: +1(808) 753-1204
Email: funding@privatemoneyhawaii.com
Looking for a reliable private money lender in Hawaii for your next real estate investment loan?
PRIVATE MONEY HAWAII
Private Money Hawaii
411 Hobron Ln #3912, Honolulu, HI 96815
Phone: (808) 753-1204
Email: funding@privatemoneyhawaii.com
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