Oahu inventory is thin, and good rentals do not wait while you sell another property or sort out a condo's paperwork. A bridge loan lets you buy now and settle the long-term financing once the property, or your other sale, is ready.
In short: LendingStreet makes short-term, interest-only bridge loans on 1-8 unit investment property across Honolulu and Oahu, from $150,000 to $5M+, with rates from 7.99% and closings in as little as 10 days. Some bridge programs need no appraisal. Oahu investors use them to buy before selling, close quickly on competitive listings and carry properties that long-term lenders will not take yet, then sell or refinance into a DSCR loan.
Bridge loans solve timing and condition problems.
Many Oahu investors trade up: they sell a Mililani or Ewa Beach rental and buy a larger property in Kaneohe, Kailua or town. Escrows in Hawaii can take longer than expected, and buyers on the property you are selling may need time. A bridge loan funds the new purchase now, and the sale proceeds pay it down when your other escrow closes.
If you are doing a tax-deferred exchange, talk to your exchange intermediary and tax advisor about how the bridge fits your timeline.
The paydown step is what makes this work on Oahu. Without the sale proceeds, a DSCR loan on the new property alone would likely be smaller than the bridge balance, because rents here are low relative to prices. Knowing where the paydown comes from before you buy keeps the bridge from turning into a problem.
This example is illustrative and not a quote. An investor buys a Kaneohe house for $1,200,000 while a Mililani rental is still on the market. A bridge loan at 75% of the price is $900,000, with estimated interest-only payments of about $7,500 a month. The Mililani sale closes five months later, after about $37,500 in bridge interest.
The investor uses $250,000 of the sale proceeds to pay the balance down to $650,000, then refinances into a DSCR loan. The house leases for $5,400. Estimated principal and interest is about $4,434, plus $400 in taxes and $250 in insurance, for about $5,084 a month and a DSCR of about 1.06x.
| Stage | Loan balance | Monthly payment |
|---|---|---|
| Bridge after purchase | $900,000 | $7,500 interest-only |
| After Mililani sale and paydown | $650,000 | Refinanced |
| DSCR loan | $650,000 | $5,084 with taxes and insurance |
Older Honolulu high-rises often face major repairs: plumbing replacement, concrete spalling, elevators and, in many buildings, fire sprinkler or life safety upgrades required by a city ordinance adopted after the 2017 Marco Polo fire. Long-term lenders may decline units in buildings with large pending assessments, low reserves or litigation.
A bridge loan can let you buy the unit while the building works through those issues, but the exit matters. Know whether the assessment will be paid, whether the building will become eligible for long-term financing, or whether you plan to sell.
Before buying, ask for the AOAO's most recent budget, reserve study, meeting minutes and any notice of planned assessments. Minutes often reveal repair plans and disputes that are not yet in the budget, and they help you estimate how long the building may stay ineligible for long-term loans.
Enclosed garages, extra downstairs units and additions built without permits are common across Oahu. Long-term lenders and appraisers may not credit them. A bridge loan can fund the purchase while you either legalize the work through the permit process or remove it, then refinance once the property is clean. Permit times can be long, so set a realistic term.
Ask the seller for permit records and compare them with the tax record and the actual layout. A permit expediter or architect familiar with Honolulu can estimate how long legalizing an addition might take, which tells you how long a bridge term you really need.
Residential bridge loans on 1-8 unit properties run from $150,000 to $5M+, with rates from 7.99%. They are short-term and interest-only. Leverage depends on the property, your experience and your exit plan. Hawaii closings go through escrow, and our team can work with your escrow company on a fast timeline.
Bridge loans are priced for flexibility, not for long holds. If the exit will take more than a year, tell us up front so the term and any extension options match the plan rather than forcing a rushed sale or refinance.
Buyers pay escrow and title costs, and sellers usually pay the state conveyance tax. If you are selling one property to fund another, include the conveyance tax and commissions on that sale in your plan. Carrying costs on Oahu include AOAO dues for condos, hurricane insurance and property taxes at the non-homeowner level.
Hurricane coverage can be harder to bind on a vacant home, so ask your agent early.
Most Honolulu bridge loans end in a DSCR refinance or a sale. Because Oahu rents are low relative to prices, a DSCR refinance often needs a lower balance than the bridge, so plan where the paydown will come from, whether that is a sale, savings or another property's equity.
Send the property, price, condo or permit details and your exit plan through the form below, or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property. We will map out the bridge and the exit together.
Include your escrow company's contact and the expected closing date. The earlier we can coordinate with escrow, the easier it is to hit a short timeline on a competitive Oahu listing.
In as little as 10 days with a complete file, clear title and a responsive escrow company.
Rates start from 7.99%. Terms depend on leverage, the property and your experience.
Some bridge programs need no appraisal; others do, depending on leverage and the property.
Often, with a bridge loan. Plan how the assessment and your exit will be handled.
Yes. That is one of the most common uses on Oahu.
Not always. On Oahu, the rent may support a smaller DSCR loan, so plan for a paydown if needed.
Yes. See our Hawaii bridge loan page for properties on other islands.
No. These are business-purpose loans on non-owner-occupied investment property.
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