Hawaii has some of the highest property values in the country, so investors there often hold large amounts of equity in a single condo or home. A DSCR cash-out refinance lets you pull it out based on the rent.
In short: LendingStreet offers DSCR cash-out refinances on Hawaii rentals of 1 to 8 units, lending up to 75% of appraised value and qualifying on rent, not W-2s or tax returns. Loans start at $150,000 and the standard minimum DSCR is 1.0x. In Hawaii, county tax classes for non-owner-occupied homes, rising condo association costs and county limits on vacation rentals are the key items to confirm.
A cash-out refinance replaces your existing loan with a larger one. The appraisal sets the value, the program caps the loan at up to 75% of it, and whatever is left after the payoff and closing costs comes to you.
Approval rests on the rent, not your income. Divide the monthly rent by the new principal, interest, taxes, insurance and HOA dues; on standard programs that ratio needs to be at least 1.0x after the new, higher balance is in place. Credit, reserves and the property itself still matter, but your personal income does not.
Oahu holds most of the state's rental stock, from condos in Honolulu, Waikiki and Kakaako to single-family homes in Ewa Beach, Kapolei, Mililani and Kaneohe. Military families stationed at Pearl Harbor-Hickam, Schofield Barracks and other bases add steady long-term rental demand.
Maui, the Big Island and Kauai have more single-family homes and resort-area condos, many historically used as vacation rentals. Some properties, particularly in parts of Honolulu, are leasehold, where the land is leased rather than owned, which narrows financing options.
Hawaii's conveyance tax applies to transfers of property and rises on higher-value non-owner-occupied sales, but it generally does not apply to a straight refinance. Escrow companies typically handle Hawaii closings, and recording through the Bureau of Conveyances or Land Court adds its own fees.
Your term sheet and closing disclosure list lender costs separately from title, recording and government charges, so you can see exactly what the cash-out costs and how much of the equity reaches you.
| Closing item | How it usually works in Hawaii |
|---|---|
| Conveyance tax | Charged on transfers; not usually on a refinance |
| Mortgage tax | No state mortgage tax |
| Recording | Bureau of Conveyances or Land Court, depending on the property |
| Escrow and title | Escrow company fees and lender title policy |
| Leasehold review | Lease terms and remaining years reviewed if the land is leased |
Property tax in Hawaii is set by each county. Rates are low by national standards, but counties generally tax homes that are not owner-occupied at a higher rate than homes with a homeowner exemption, and some have added higher-rate classes for expensive non-owner-occupied homes.
Check which class your property falls under and use that bill in the ratio. If you rent long term, some counties have classes or exemptions tied to long-term rental use, so ask the county.
Hawaii homes face hurricane risk, and hurricane coverage is often a separate policy. On the Big Island, lava hazard zones affect which carriers will write coverage. Condo owners rely on the association's master policy, and some associations have faced sharp premium increases and special assessments.
For a condo, get the association budget, reserve study and master policy certificate early. Higher dues reduce the ratio dollar for dollar. Single-family homes carry their own policy, and roof age and construction type affect the price.
This example is illustrative and not a quote. An investor owns an Ewa Beach home appraised at $950,000 with $400,000 owed on the current loan, leased long term. Rent is $6,100 a month and county property taxes, insurance and HOA dues come to $680 a month.
At 75% LTV the new loan is $712,500. Paying off the $400,000 balance leaves $312,500 before closing costs. On a 30-year term, principal and interest is about $4,861, so the full payment is about $5,541 and the DSCR is about 1.10x, above the 1.0x standard minimum.
Put another way, rent would have to fall below about $5,541 a month before this loan dropped under 1.0x, a cushion of roughly $559 a month. Running the same check on your own numbers shows how much cash the rent can actually support.
| Item | Amount |
|---|---|
| Appraised value | $950,000 |
| Loan at 75% LTV | $712,500 |
| Existing loan payoff | $400,000 |
| Cash before closing costs | $312,500 |
| Principal and interest | About $4,861 |
| Taxes, insurance and HOA | $680 |
| Total monthly payment | About $5,541 |
| DSCR at $6,100 rent | About 1.10x |
Honolulu generally requires rentals outside resort-zoned areas to run for 90 days or longer. Maui has moved to phase out many vacation rentals in apartment-zoned districts, and the other counties limit short-term rentals through permits and zoning.
If you plan to use nightly income to qualify, the property must be legally permitted for it. Many Hawaii refinances are underwritten on long-term rent, which keeps the file simpler.
If you bought or finished a rehab recently, the seasoning rules matter. Depending on the program, a recent purchase may qualify on the appraised value right away, or the loan may be held to cost plus documented improvements for the first several months.
Your cash is the smaller of what 75% LTV allows and what the rent can carry at 1.0x or better. Larger loans and 5-8 unit buildings can have lower LTV caps, which vary by program.
If you are unsure which limit applies to you, send the purchase date, rehab costs and rent through the form below and we will run both.
Having these ready shortens the timeline and avoids surprises at the appraisal.
Yes. We finance DSCR cash-out refinances on non-owner-occupied 1-8 unit investment property in Hawaii, up to 75% LTV, with no stated maximum loan size.
Options are narrower. Lenders review the ground lease terms and the years remaining. Send the lease early so the file can be checked before an appraisal.
Only if the property is in a resort-zoned area or otherwise legally permitted for short stays. Most Oahu rentals outside those areas must rent for 90 days or more.
Generally no. Conveyance tax applies to transfers of property. A refinance carries escrow, title, recording and lender costs.
No. The loan qualifies on the property's rent. You will still need a 620 or higher credit score, reserves and entity documents if the property is held in an LLC.
Yes. LLC borrowers are standard on DSCR loans, and the members typically sign for the loan personally. Have the operating agreement, articles and EIN letter ready.
You can take a smaller loan to bring the ratio up, or look at sub-1.0 DSCR programs, which exist for some properties and borrowers with stronger profiles.
Yes. With no existing loan to pay off, proceeds are up to 75% of appraised value less closing costs, still subject to the rent covering the new payment.
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