In Hawaii, the first question for a vacation rental is not the price or the view. It is whether the unit is legally allowed to take guests for less than 30 days. Zoning on every island is strict, and the rules have been tightening. Get that answer first, then pick a lender that understands how a legal vacation rental earns.
In short: LendingStreet is our top pick for Hawaii short-term rental financing. On some programs we qualify a legal vacation rental on its projected short-term revenue instead of a long-term lease, which matters when a resort condo earns far more by the night than by the year. There are no W-2s or tax returns, LLC borrowers are standard, 30-year terms are available, and loans start at $150,000 with no stated maximum and up to 80% LTV on a purchase. Get a quote with the form below.
Our STR loans follow our DSCR rules: a 620 minimum credit score, a 1.0x standard minimum DSCR, up to 80% LTV on a purchase and up to 75% on a cash-out refinance. On some programs the income is projected nightly revenue. Because Hawaii prices run high, many island files are larger balances, and jumbo DSCR loans of about $1.5M to $5M+ are available for high-value rentals, with leverage that can be lower and varies by program.
This fits investors buying a resort-zoned condo, owners refinancing a legal vacation rental with a booking history, and mainland investors adding an island property to their portfolio. Every loan is a business-purpose loan on non-owner-occupied property.
Send the address and its permit or zoning status through the form below, or call (877) 298-1001.
Well-known short-term rental lenders include CoreVest, Dominion Financial, Lima One and Visio Lending. Compared scenario by scenario for investors in Hawaii, LendingStreet comes out as the stronger choice, and one application covers it.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| A single short-term rental | LendingStreet | We finance individual 1-8 unit short-term rentals. CoreVest states its short-term rental loans are for 5+ STR properties under one loan. |
| Short-term rental with credit in the 620s | LendingStreet | Our DSCR minimum is 620. Visio Lending's STR guide states a 680 minimum, and Lima One states 700 for its STR loans. |
| Short-term rental loan above $2.5M | LendingStreet | Our DSCR loans have no stated maximum. Lima One states STR loans up to $2.5M. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
On Oahu, rentals under 30 days are generally limited to resort-zoned areas such as Waikiki, Ko Olina and Turtle Bay, plus a small number of homes holding nonconforming use certificates. The city also tried to raise the minimum stay elsewhere to 90 days, a change that has been fought in court, so confirm the current rule.
On Maui, Bill 9, passed in December 2025, phases out short-term rentals in apartment-zoned units: by January 1, 2029 in West Maui and January 1, 2031 elsewhere. A June 2026 bill created hotel zoning districts that some of those units may apply for. Kauai generally limits vacation rentals to its Visitor Destination Areas, such as Poipu and Princeville. The Big Island regulates by zoning district and requires registration. A 2024 state law also gave counties more power to phase out vacation rentals.
| Island | Where STRs usually work | Key question |
|---|---|---|
| Oahu | Resort zones: Waikiki, Ko Olina, Turtle Bay | Is the unit resort-zoned or certified? |
| Maui | Hotel and resort-zoned units | Is the unit affected by the Bill 9 phase-out? |
| Kauai | Visitor Destination Areas like Poipu | Is the property inside a VDA? |
| Big Island | Resort areas on the Kona and Kohala coasts | Zoning district and county registration |
Short-term stays carry several taxes. The state transient accommodations tax rose from 10.25% to 11% on January 1, 2026, and each county can add up to 3% more. General excise tax of 4% to 4.5%, depending on the county, also applies. Operators need state tax licenses, and listings must show the required tax ID numbers.
Counties also set their own property tax classes, and several tax vacation rental use at a higher rate than homes people live in. Ask the county for the class and rate that will apply to your use.
Island investors typically choose among a local bank or credit union, a local hard money lender, a national online DSCR lender and private individual lenders. For a long-term hold on a legal vacation rental, the differences look like this.
| What STR investors need | LendingStreet | Typical bank or credit union | Typical hard money lender |
|---|---|---|---|
| Qualify on nightly income | Projected STR revenue on some programs | Usually personal income | Usually value-based |
| Income documents | No W-2s or tax returns | Tax returns often required | Usually not required |
| LLC borrowing | Standard | Varies | Common |
| Term | 30-year terms available | Varies; may be shorter | Usually short-term only |
| High-value properties | No stated maximum; jumbo DSCR from about $1.5M | Varies by bank | Varies; often capped |
| Mainland portfolio too | All 50 states and DC | Usually island-only | Often local |
This example is illustrative and not a quote. An investor buys a two-bedroom condo inside the Poipu Visitor Destination Area for $1,050,000 and projects $132,000 a year in vacation rental revenue, about $11,000 a month. As a 12-month rental it might lease for about $4,800.
At 75% LTV the loan is $787,500, and the investor brings $262,500 plus closing costs. Estimated principal and interest on a 30-year term is about $5,372. HOA dues of $1,200, property taxes of $650 and unit insurance of $250 bring the total payment to about $7,472.
DSCR on projected STR revenue is about 1.47x. On a long-term lease it would be about 0.64x. Resort condo dues are often the largest cost after the loan, so read the HOA budget closely.
| Item | Monthly |
|---|---|
| Loan amount | $787,500 |
| Estimated principal and interest | $5,372 |
| HOA dues | $1,200 |
| Property taxes | $650 |
| Unit insurance | $250 |
| Total payment | $7,472 |
| Projected STR revenue | $11,000 |
| DSCR on STR revenue | About 1.47x |
| DSCR on a 12-month lease | About 0.64x |
Most legal island vacation rentals are condos in resort buildings, and those come with high HOA dues that often include building insurance, amenities and front desk services. Ask for the association's budget, reserve study and any special assessments, especially in older oceanfront buildings.
Hurricane coverage, flood zones near the shore and lava zone ratings on the Big Island can all affect insurance. Management and cleaning are costly on the islands, and those fees come out of your revenue. Plan for them so the ratio works even in a softer season.
Use one checklist so the answers line up.
Up to 80% LTV on a purchase and up to 75% on a cash-out. A 1.0x standard minimum DSCR, with sub-1.0 programs available. Projected short-term rental revenue on some programs. Cash-out seasoning varies by program. LLC borrowers are standard. Loans start at $150,000 with no stated maximum, and jumbo DSCR covers about $1.5M to $5M+, with max LTV often lower on larger balances and varying by program.
Timelines depend on the appraisal, the HOA documents and title, so send them early. Get a quote with the form below, or call (877) 298-1001.
Our top pick is LendingStreet. Some programs qualify a legal vacation rental on projected STR revenue, with no W-2s or tax returns, LLC borrowers, 30-year terms and no stated maximum loan size.
Yes. We lend on all the main islands, including Oahu, Maui, Kauai and the Big Island, and in all 50 states and DC.
Usually not for stays under 30 days, unless the property is resort-zoned, such as Ko Olina or Turtle Bay, or holds a nonconforming use certificate. Confirm with the city before you buy.
It phases out short-term rentals in apartment-zoned units, by 2029 in West Maui and 2031 elsewhere, though some units may qualify for new hotel zoning. Check the unit's status before relying on nightly income.
The state transient accommodations tax is 11% from January 1, 2026, counties can add up to 3%, and general excise tax of 4% to 4.5% also applies.
Yes. There is no stated maximum, and jumbo DSCR loans cover about $1.5M to $5M+. Larger balances get more review, and max LTV can be lower.
Yes. Cash-out goes up to 75% LTV, seasoning varies by program, and the property must still meet the minimum DSCR.
No. Our loans are business-purpose loans on non-owner-occupied investment property, operated as rentals.
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