Private Money Hawaii
How to Qualify for a Hard Money Loan in Hawaii: A Local Lender’s Guide
If you’re looking for quick and flexible real estate financing in Hawai‘i—especially when banks move too slowly or turn you away—hard money lending can be a powerful tool. As a local Hawaii hard money lender, I help buyers, homeowners, and investors statewide secure funding fast, even when their finances or property condition are too complicated for traditional lenders.
Hard money loans aren’t for everyone, but they serve an important purpose: they help borrowers who need speed, flexibility, and asset-based underwriting. In this guide, I’ll walk you through how to qualify, how much down payment you’ll need, what typical Hawaii loan terms look like, and alternatives worth considering.
If you want personalized numbers or want to apply, you can get a fast quote anytime.
What Is a Hard Money Loan?
A hard money loan is a short-term, real-estate-backed loan based primarily on the property’s value—not your income or tax returns. Hard money loans are commonly used in Hawai‘i for:
- Fix-and-flips
- Investment properties
- Bridge loans
- Fast purchases
- Situations with unique property challenges
- Borrowers with complex or nontraditional finances
- Homes needing renovation or repair
Because Hawaii has such a competitive and inventory-limited market, the ability to close fast can make or break a deal. Hard money fills that gap.
How Do You Qualify for a Hard Money Loan in Hawaii?
Unlike banks, which require deep financial documentation, hard money lenders look at three main things:
1. The Property Itself
The number-one factor is the collateral—the property you’re buying or using as security. I evaluate:
- Purchase price
- Condition of the home
- Location (O‘ahu, Maui, Big Island, Kaua‘i)
- Market strength
- After-repair value (for flips)
If the property is solid, your approval odds increase dramatically.
2. Your Down Payment or Equity
Most Hawaii hard money loans require 20%–30% down, though this varies depending on:
- Property type
- Renovation needs
- Your experience level
- The strength of the deal
- Risk associated with the area
If you already own a property, I can often use the equity to reduce or eliminate your out-of-pocket down payment.
3. A Clear Exit Strategy
A strong exit strategy is essential. This simply means how you plan to pay off the loan, such as:
- Selling the property after renovations
- Refinancing into a long-term rental loan
- Selling another asset
- Paying off the loan with future financing
Hard money loans are short-term, so knowing your exit plan ensures success.
4. Light Credit Review
Hard money loans do not require perfect credit. In fact, many borrowers come to me because:
- They’re self-employed and write off a lot
- They have recent credit dings
- They’re recovering from financial setbacks
- They don’t have the documentation banks require
I do review credit lightly, but the property and your plan matter far more.
Do Hard Money Lenders Require a Down Payment?
Yes. Almost all hard money lenders require a down payment or equity contribution.
In Hawaii, expect 20%–30% down, though certain deals—especially distressed properties—may require more.
That said, there are ways to structure deals creatively, such as:
- Cross-collateralizing another property
- Using equity instead of cash
- Partnering with another investor
- Structuring an ARV-based loan
If you’re unsure what your deal might require, I can run the numbers quickly.
How Much Down Payment Do You Need for a Hard Money Loan in Hawaii?
Here are Hawaii-specific estimates:
| Property Type | Typical Down Payment |
| Fix-and-flip | 20%–30% |
| Bridge loan | 25%–35% |
| Land | 40%–50% |
| Distressed/tear-down | Case by case |
| Rural areas | Higher down payment |
Down payment also varies by island:
- O‘ahu: Lower risk, lower down payment
- Maui: Stable but pricier
- Big Island/Kaua‘i: More variable markets
Every Hawaii island is unique, so underwriting adapts accordingly.
Typical Hard Money Loan Terms in Hawaii
While exact terms depend on the deal, here’s what borrowers usually see in the Hawaii market:
Loan Term
- 6–12 months, sometimes extendable
Interest Rate
- Typically 10%–14%
Points (Origination Fees)
- Generally 2–4 points (2%–4% of the loan amount)
Closing Speed
- 3–7 days depending on title and appraisal needs
Property Types Eligible
- Single-family homes
- Condos
- Multi-family
- Mixed-use
- Commercial (case-by-case)
- Land
Rehab / Construction Funding
For flips, renovation funds can often be rolled into the loan and released in draws.
Do You Need a Job or Traditional Income for a Hard Money Loan?
No.
This is one of the biggest advantages of hard money loans.
Lenders do not rely on:
- W-2s
- Pay stubs
- Tax returns
- Debt-to-income ratios
Instead, approval is based on:
- The strength of the deal
- The property’s condition and value
- Your cash reserves
- Your exit strategy
So even if you have unique or unconventional finances, you may still qualify.
What’s the Maximum Hard Money Loan Amount in Hawaii?
Local Hawaii lenders typically fund:
- $100,000 to $3,000,000+ for residential and investment properties
- Higher loan amounts possible for luxury or multi-property deals
Because hard money underwriting is flexible, large deals are evaluated case-by-case.
If you need a high-value loan, I can structure it using multiple local investors.
Alternatives to Hard Money Loans
Hard money is powerful, but it’s not always the cheapest option. Here are alternatives worth exploring:
DSCR Loans
Good for rental properties with strong cash flow.
Bank Statement Loans
Ideal for self-employed borrowers with strong revenue.
Non-QM Loans
Lenient credit and income guidelines.
HELOCs
Tap equity from another property for a lower rate.
Private Partnerships
Bring in capital without needing a large down payment.
Cash-Out Refinance
Best if you have time and equity.
If you’re unsure which is best, I can walk you through the options.
Why Work With a Local Hard Money Lender in Hawaii?
This is one of the biggest advantages borrowers overlook.
National lenders often struggle with Hawaii properties.
They may not understand:
- Leasehold
- Lava zones
- Rural market quirks
- Ohana units
- Access issues
- Condotels and resort zoning
Out-of-state underwriters frequently decline deals that local lenders can easily approve.
Local lenders understand real Hawaii real estate.
We know:
- Each island’s micro-markets
- True ARV potential
- Local contractor pricing
- Realistic timelines
- Unique property types
And most importantly:
We can close fast and structure deals creatively.
If you want a local lender who actually understands Hawaii real estate, I’m here to help.
Frequently Asked Questions About Hard Money Loans in Hawaii
How do you qualify for a hard money loan in Hawaii?
You qualify based on the property’s value, your down payment or equity, and your exit strategy. Credit and income documentation are much less important compared to traditional loans.
How much down payment do you need?
Most Hawaii hard money loans require 20%–30% down, depending on the property’s risk and condition.
Do hard money lenders require down payments?
Yes. Down payments or equity are required to ensure you have “skin in the game.” Equity from another property may reduce cash needed.
What are typical Hawaii hard money loan terms?
Terms usually include 6–12 months, 10%–14% interest, and 2–4 points. Many loans close in under a week.
Do you need a job to qualify?
No. Hard money loans are asset-based and do not require tax returns, W-2s, or traditional income verification.
What’s the maximum loan amount?
Local lenders typically fund $100,000 to $3,000,000+, with higher amounts possible for larger projects.
What are alternatives to hard money?
Alternatives include DSCR loans, bank statement loans, HELOCs, cash-out refinances, and private investor partnerships.
Ready to Get Funding Fast?
Apply for a Hawaii Hard Money Loan
Get a Fast Quote From David Ige
I can typically pre-approve you the same day and close in as little as 3–7 days.
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