Private Money Hawaii
Hard Money Loan Requirements in Hawaii
A Straightforward Guide for Hawaii Real Estate Investors
Why Hard Money Loans Are Different from Bank Loans
Key Requirements for a Hard Money Loan in Hawaii
- Down Payment / Equity: Most lenders require 25–30% down. Loan-to-Value (LTV) usually maxes out at 70%.
- Property Type: Eligible properties include single-family homes, multi-family units, condos, land, and select commercial buildings. Leasehold properties in Hawaii may require additional review.
- Proof of Funds: Recent bank statements or investment account balances to show liquidity for payments and renovations.
- Exit Strategy: A documented plan to repay—such as a resale, refinance into a DSCR loan, or generating rental income.
- Documentation: Basic ID, signed purchase contract, rehab budget, and LLC documents (if borrowing through an entity).
- Experience: First-time investors can qualify, but seasoned flippers or developers often receive more favorable terms.
How Hard Money Lending Works in Hawaii
A Hawaii hard money lender evaluates your deal primarily by property value and project plan. Typical terms include:
- Loan terms: 6–24 months
- Interest rates: 9–12%
- Payments: interest-only
- Origination fees: 1–3 points
- Closing timeline: 7–14 days
Because private lenders emphasize speed, investors use hard money loans to acquire distressed properties, fund fix-and-flip projects in Honolulu, or move quickly on competitive deals across Maui, Kauaʻi, and the Big Island.
Local Factors to Consider in Hawaii
Hawaii’s real estate market has unique characteristics that influence hard money loan requirements:
- Leasehold vs. Fee Simple: Some properties are leasehold, which can affect lender approval and resale value.
- Zoning & Permits: Projects in Honolulu and other counties may need strict permitting, which lenders expect borrowers to account for.
- High Land Values: Especially on Oʻahu, higher values mean larger down payments or additional collateral.
- Title & Escrow: Hawaii uses both Land Court and Bureau of Conveyances, which can slightly impact closing timelines.
Best Places in Hawaii for Hard Money Investments
While Honolulu and Waikiki remain hotbeds for real estate, other promising markets include:
- Kailua: Popular for single-family flips and vacation rentals.
- Hilo: Affordable entry point with growth potential.
- Lahaina (Maui): Opportunities in redevelopment and luxury homes.
- Kona (Big Island): Increasing investor activity in residential and mixed-use properties.
FAQs: Hard Money Loan Requirements in Hawaii
Do I need tax returns?
Usually no. Most lenders focus on property value and exit strategy, not income history.What’s the minimum credit score?
Credit is less important, but a score above 600 helps. Many lenders approve lower if the deal is strong.Can foreign investors qualify?
Yes, but they may face additional documentation requirements.How fast can I close?
With all documents ready, many loans close in 7–10 business days.Final Thoughts
From Maui’s luxury homes to affordable housing in Hilo, understanding the requirements for Hawaii hard money loans helps you prepare the right documents and secure funding fast. By working with an experienced Hawaii hard money lender, investors can access flexible, asset-based financing to compete in one of the most dynamic real estate markets in the U.S.
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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.
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