Private Money Hawaii
Bridge Loans in Hawai‘i: How They Work & When to Use Them
Hawai‘i real estate moves fast. Inventory is limited, competition is intense, and sellers often expect clean, non-contingent offers. Whether you’re buying a new home before selling your current one, trying to secure an investment property, or need short-term financing for an opportunity that won’t wait, bridge loans can be the perfect solution.
As a local Hawaii hard money lender, I regularly provide bridge loans to buyers, investors, and homeowners who need quick, flexible, temporary financing. This guide will show you exactly how bridge loans work in Hawai‘i, when they’re the best option, and how to get approved quickly.
What Is a Bridge Loan?
A bridge loan is a short-term loan used to “bridge” the gap between two financial events. Most commonly:
- Buying a new home before selling your old one
- Buying investment property before long-term financing is ready
- Purchasing a property FAST to avoid losing it
- Accessing equity tied up in another property
Bridge loans are popular in Hawai‘i because they let buyers move quickly without waiting for traditional financing.
How Bridge Loans Work in Hawai‘i
Bridge loans are structured differently from traditional loans. They typically include:
- Short-term loan terms (6–12 months)
- Interest-only payments
- Equity-based approvals
- Flexible documentation
- Fast closings (3–10 days)
- Local underwriting
Unlike banks, bridge lenders don’t need:
- W-2s
- Tax returns
- Pay stubs
- Debt-to-income verification
Approval is mainly based on your equity, property, and exit strategy.
Why Bridge Loans Are So Popular in Hawai‘i
Hawai‘i buyers and investors use bridge loans for one main reason:
Speed.
A typical conventional mortgage in Hawai‘i takes 30–45 days to close.
A bridge loan can close in 3–7 days, sometimes faster.
This matters because:
- Homes receive multiple offers
- Sellers prefer non-contingent offers
- Investors often compete with cash buyers
- Off-market deals are time-sensitive
- Auction properties require fast funding
In a competitive market like ours, speed = leverage.
When to Use a Bridge Loan in Hawai‘i
Bridge loans are ideal in several scenarios:
Scenario 1: Buying a New Home Before Selling Your Current One
This is the most common reason homeowners use bridge loans.
Instead of:
- Selling first
- Renting temporarily
- Moving twice
- Missing your ideal home
A bridge loan lets you buy first, then sell later.
How it works:
- The loan is secured by your current home
- Funds are used to buy your new home
- Once the old home sells, the loan is paid off
This removes contingencies, making your offer stronger.
Scenario 2: Investors Needing Quick Capital
Investors rely on bridge loans to:
- Close quickly
- Beat out competitors
- Fund value-add properties
- Take advantage of time-sensitive opportunities
- Buy properties that don’t qualify for conventional loans
Common investor uses:
- Fix-and-flips
- BRRRR acquisitions
- Portfolio purchases
- Short-term rental acquisitions
- Condotel purchases
Bridge loans give investors flexibility that banks cannot match.
Scenario 3: Transitioning from Hard Money to Permanent Loans
Sometimes you need temporary financing while waiting for:
- DSCR approval
- Conventional loan seasoning
- Cash-out refinance timing
- Appraisal delays
- Tax return updates
A bridge loan keeps your deal moving.
Scenario 4: Properties That Need Repairs Before Refinancing
Some homes need repairs before a bank will refinance them.
Examples:
- Roof leaks
- Plumbing issues
- Termite damage
- Unpermitted additions
- Older electrical panels
- Mold or moisture issues
A bridge loan lets you buy the property, fix it, then refinance.
Scenario 5: When You Need to Access Equity Quickly
Bridge loans can convert equity into cash by borrowing against:
- Your primary home
- A rental property
- Land
- An investment property
- A second home
This is useful when you need liquid cash but don’t want to sell.
Typical Bridge Loan Terms in Hawai‘i
Bridge loans vary depending on the lender and the property, but typical terms include:
Loan Term:
6–12 months (sometimes 18–24)
Interest Rate:
10–12% (Hawai‘i standard range)
Points:
2–3 points
Down Payment:
20–35% depending on equity position
Closing Time:
3–10 days
Amortization:
Interest-only payments
Property Types Eligible:
- Single-family homes
- Condos
- Condotels
- Multi-family
- Mixed-use
- Land (case by case)
Why Bridge Loans Close Faster in Hawai‘i than Conventional Loans
1. Less Documentation
No income verification required.
2. Local Underwriting
Decisions made within 24–48 hours.
3. Flexible Valuation Methods
Local BPOs instead of full appraisals.
4. No Committees or Layers
Many national lenders send files through multiple departments.
5. Familiarity With Hawaii-Specific Challenges
Local lenders understand:
- Lava zones
- Leasehold
- CPRs
- Condotels
- Rural zoning
- Septic/cross-connection issues
This speeds up approval dramatically.
Bridge Loans vs Hard Money Loans in Hawai‘i
Bridge loans and hard money loans are similar, but are used for different purposes.
| Feature | Bridge Loans | Hard Money Loans |
| Purpose | Temporary financing | Rehab, flip, investment |
| Speed | Very fast | Fastest |
| Down Payment | 20–35% | 20–30% |
| Property Condition | Must be decent | Can be distressed |
| Exit Strategy | Refi or sale | Refi or sale |
| Best For | Homeowners & investors | Flips & distressed deals |
They overlap often, especially when used by investors.
Real Examples of Bridge Loans in Hawai‘i
Example 1 — Honolulu Homeowner
A Honolulu couple found their dream home in Kaimuki but hadn’t yet sold their current house. A bridge loan let them buy first, move in, then sell later.
Example 2 — Maui Investor
An investor found a great deal in Lahaina but needed to close in 5 days. A bridge loan secured the property.
Example 3 — Big Island Buyer
A property in Kona needed minor repairs before refinancing. Bridge loan → repairs → DSCR refinance.
Common Questions About Hawaii Bridge Loans
Do I need a job?
No. These are equity-based loans.
Can I use a bridge loan on a rental?
Yes.
What if my credit isn’t perfect?
Bridge loans allow lower scores.
What if the home is in a lava zone?
Local lenders often approve it.
Can I use a bridge loan to flip?
Not usually—use a fix-and-flip loan instead.
Need fast, flexible financing in Hawai‘i?
Apply for a Hawaii bridge loan today
Want to explore your options before applying?
Request a bridge loan quote
Need funding in under a week?
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.
Ready for a Honolulu Hard Money Loan? Fast, Flexible Financing Across Hawaii
Act Fast with a Trusted Local Partner
Secure funding in as little as 7–14 days. No bank delays—just Honolulu hard money loans designed for investors who need speed and certainty.
Tailored Loan Programs
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.
Local Expertise You Can Trust
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