Private Money Hawaii
Hawaii Real Estate Investment Loans: Complete Guide for New & Experienced Investors
Hawai‘i is one of the most desirable and competitive real estate markets in the world. From O‘ahu’s urban core to Maui’s luxury resort zones, Kaua‘i’s coastal retreats, and the Big Island’s rapidly evolving markets, investors have endless opportunity—if they understand which financing strategy fits their goals.
As a local Hawaii hard money lender, I work directly with investors who need fast, flexible, and practical financing solutions. Whether you’re a new investor buying your first rental or an experienced flipper scaling your portfolio, this guide will walk you through every major type of real estate investment loan available in Hawai‘i.
This is your complete, no-nonsense, investor-focused guide to financing in the islands.
Why Hawaii Real Estate Requires Specialized Lending
Investing in Hawai‘i is different from investing on the mainland. Here are just a few reasons:
Inventory is extremely limited
Homes move fast—financing must keep up.
Home prices are higher than mainland markets
Investors need leverage, speed, and strong financial planning.
Many homes require renovation
Older plantation-style homes need modern updates.
Unique property challenges exist
Lava zones, leasehold land, CPRed lots, ohana units, and condotels require specialized underwriting.
Airbnb/Vacation rental markets are strong
DSCR loans and condotel financing are highly important here.
To succeed, you need financing built specifically for Hawaii’s real estate environment.
The 8 Main Types of Hawaii Real Estate Investment Loans
This guide covers:
- Hard Money Loans
- DSCR Loans
- Bank Statement Loans
- Bridge Loans
- HELOCs & Cash-Out Refinances
- Private Money Loans
- Conventional Investment Loans
- Commercial / Mixed-Use Loans
Each has its place. Below is the detailed breakdown.
1. Hard Money Loans (Fastest & Most Flexible)
Hard money loans are short-term, asset-based loans used for:
- Fix-and-flips
- Distressed homes
- Quick closings
- BRRRR acquisitions
- Condotels
- Lava zone homes
- Unpermitted improvements
- Homes banks reject
Hard money focuses on:
- Property value
- Down payment or equity
- Exit strategy
Not income or documentation.
Typical Hawaii Terms:
- 10–14% interest
- 2–4 points
- 20–30% down
- 6–12 month terms
- Close in 3–7 days
- Rehab funds available (ARV-based)
Hard money is the backbone of Hawaii flipping and short-term investing.
For more detail, see:
Fix-and-Flip Loans in Hawaii
How Fast Hard Money Loans Close in Hawaii
2. DSCR Loans (Best for Rentals & Airbnbs)
A Debt Service Coverage Ratio loan qualifies borrowers based on the property’s rental income, not personal income.
Why DSCR loans are ideal for Hawaii:
- Strong Airbnb markets in Waikiki, Kihei, Kona, and Princeville
- Strong long-term rental markets in Honolulu, Ewa Beach, and Hilo
- No tax returns or W-2s needed
- LLC ownership allowed
- 30-year fixed terms
Requirements Typically Include:
- DSCR ≥ 1.0 (breakeven or better)
- 20–25% down
- 660–680+ credit
- Property must be rent-ready
DSCR is the ideal long-term loan for Hawaii investors.
Learn more in:
DSCR vs Hard Money Loans in Hawaii
3. Bank Statement Loans (Great for Self-Employed Investors)
Many Hawai‘i residents are self-employed:
- Contractors
- Rideshare drivers
- Realtors
- Small business owners
- Gig workers
Traditional income documentation doesn’t always reflect real earnings.
Bank Statement Loans use 12–24 months of bank deposits to qualify you—no tax returns required.
They offer:
- Lower down payments
- Competitive long-term rates
- Great for investor-occupied properties or second homes
These loans open doors for buyers with nontraditional income.
4. Bridge Loans (Short-Term, Fast Funding)
Bridge loans are temporary loans used when:
- You want to buy before selling
- You need funds quickly
- You’re refinancing soon
- You’re upgrading homes
- You’re waiting for long-term financing
They are similar to hard money loans but slightly lower cost.
Common Uses in Hawai‘i:
- Non-contingent offers
- Delayed DSCR closings
- Temporary loan seasoning
- Investors accessing equity
- Fast acquisition of rental properties
Learn more in:
Bridge Loans in Hawaii
5. HELOCs & Cash-Out Refinances
If you already own property in Hawai‘i, you may unlock significant equity using:
HELOCs (Home Equity Lines of Credit)
Best for:
- Covering down payments
- Funding light renovations
- Operating cash flow
Cash-Out Refinance
Best for:
- High-equity homeowners
- Rolling equity into new investments
- Re-leveraging your portfolio
Because Hawaii values have risen sharply, HELOCs are extremely popular with investors.
6. Private Money Loans (Flexible & Relationship-Based)
Private money loans come from:
- Friends
- Family
- Local investors
- Business partners
- Small, private lenders
They offer:
- Flexible repayment
- Negotiable terms
- Fast access to capital
- Minimal documentation
They’re commonly paired with hard money to reduce cash-to-close.
For strategies, see:
How to Finance a Flip in Hawaii With Little Money Down
7. Conventional Investment Loans
These are good for:
- Buyers with strong credit
- High-income borrowers
- Standard single-family or condo rentals
- Long-term investment strategies
Pros:
- Lower interest rates
- 30-year terms
- Predictable costs
Cons:
- Slow (30+ days)
- Require income verification
- Don’t fund distressed or unique properties
Still, when you qualify, conventional loans offer exceptional long-term stability.
8. Commercial & Mixed-Use Loans
Used for:
- Apartment buildings (5+ units)
- Mixed-use retail + residential
- Office or industrial buildings
- Hotels or resort condos
These properties are underwritten on the building’s income, not your personal income.
Great for:
- Investors scaling
- Passive income opportunities
- Large Honolulu or Maui projects
Which Loan Is Best for Your Hawaii Investment Strategy?
Here’s the quick breakdown:
For fix-and-flips:
For BRRRR deals:
Hard money → DSCR refinance
For long-term rentals:
For Airbnbs and vacation rentals:
DSCR loans
For buying before selling:
For self-employed buyers:
Bank statement loans
For investors with equity:
HELOCs or cash-out refinance
For creative financing:
Hard money + private money hybrid
For large deals:
Commercial loans
Why Local Lending Matters in Hawai‘i
Mainland lenders often misunderstand:
- CPR structures
- Condotels
- Ohana units
- Leasehold rules
- Lava zones
- Building and permitting timelines
- Local market nuances
Local lenders like myself offer:
- Faster approvals
- Flexible underwriting
- Local ARV knowledge
- More realistic rehab budgets
- Comfort with unique Hawaii conditions
This leads to better approvals and fewer delays.
Want help choosing the best loan for your Hawaii investment?
Contact David Ige for a personalized loan analysis
Ready to fund your next Hawaii property?
Apply for an investment loan today
Have a deal you want reviewed?
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