Private Money Hawaii
Private Lending Rates in Hawaii
What to Expect and How They Compare to Banks
Hawaii’s real estate market moves quickly, and so do savvy borrowers. When traditional banks can’t deliver fast approvals or flexible terms, many turn to private lenders. But what about the cost? Private lending rates in Hawaii typically run higher than those of banks, but offer a different kind of value: speed, simplicity, and custom loan structures. Whether you’re funding a real estate flip, tapping equity, or closing on a time-sensitive deal, understanding the pricing structure is key to making smart financial decisions.What Are Typical Private Lending Rates in Hawaii?
Private money lenders in Hawaii usually offer:
- Interest Rates: 8% to 12% (depending on loan type and risk)
- Loan Terms: 6 to 24 months (short-term, interest-only)
- Origination Fees (Points): 1% to 3% of the loan amount
- Closing Speed: As fast as 3 to 7 business days
Rates are generally higher than conventional mortgages, but the flexibility and approval speed make private loans a valuable tool for many borrowers.
What Influences Private Lending Rates in Hawaii?
1. Loan-to-Value Ratio (LTV)
The higher the LTV, the more risk a lender assumes — which can increase the rate. Properties with strong equity or value tend to secure more favorable pricing.
2. Property Type and Location
A condo in Waikiki? A teardown in Hilo? Rates may vary based on the property’s market appeal, condition, and resale potential.
3. Borrower Experience
Experienced investors or repeat borrowers may receive preferred pricing, especially if they have a strong track record with successful exits.
4. Exit Strategy
Lenders want to know how they’ll be repaid — via refinance or sale. A clear and realistic exit strategy helps build lender confidence and may reduce the rate.
5. Loan Purpose
Fix-and-flip financing, bridge loans, DSCR loans, and cash-out refinancing may carry different pricing structures based on risk and loan duration.
Private Lending vs. Traditional Banks in Hawaii
| Feature | Private Lenders | Traditional Banks |
| Approval Time | 3–10 days | 30–60 days |
| Credit Score Requirements | Flexible | Strict |
| Property Flexibility | High (non-traditional accepted) | Low (conforming only) |
| Interest Rates | 9%–12% | 5%–7% (for qualified borrowers) |
| Documentation Requirements | Minimal | Extensive |
While banks offer lower interest rates, they may not meet the needs of Hawaii-based investors who need speed and flexibility to compete in hot markets.
When Higher Rates Are Worth It
In Hawaii, where opportunities move fast and properties often require renovation, the slightly higher cost of private lending is often outweighed by the benefits of:
- Securing off-market deals
- Avoiding missed opportunities
- Funding unique or distressed properties
- Managing short-term capital needs
With private lending rates in Hawaii offering quick access to capital for high-stakes deals, the question isn’t always “what’s the cheapest loan?”, but rather, “what’s the smartest move for this opportunity?”
How to Get the Best Rate
- Bring more equity (lower LTV).
- Present a clear exit strategy (sale comps, DSCR refi path).
- Provide a detailed budget & timeline with contingencies.
- Use experienced, licensed local contractors.
- Share prior project track record (before/after, P&L).
FAQs: Private Money Rates in Hawaii
Are rates fixed or variable?
Most private loans are fixed for the short term (6–24 months).Is there a prepayment penalty?
Often none, but confirm for your specific program.Do rates differ by island?
Yes — liquidity, logistics, and risk vary by submarket.Can points be negotiated?
Sometimes, if equity is strong and the deal is straightforward.Get a Custom Rate Quote
Pricing is deal-specific. Share your property, scope, budget, and exit plan for a tailored quote and timeline. Request Hawaii Private Lending RatesOffering Rates Starts at 9%
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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.
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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