In Hawaii, $1M often buys an ordinary single-family home, so large bridge loans are common. The questions that matter most are whether the land is fee simple or leasehold, whether short-term rentals are allowed where you are buying, and how the conveyance tax applies to investors.
In short: LendingStreet provides Hawaii bridge loans from $1M to $5M+ on 1-8 unit investment properties, with rates from 7.99% and closings in as little as 10 days. Larger balances are reviewed case by case and usually need a full valuation. Hawaii investors use them to buy homes and small multi-unit properties on Oahu and the neighbor islands, then refinance into jumbo DSCR loans, usually at lower leverage because prices are high relative to rent.
On Oahu, investors buy in Kailua, Kaneohe, Kaimuki, Manoa, Ewa Beach, Kapolei and Mililani, and high-value homes in Kahala, Hawaii Kai and Lanikai. Military housing demand around Pearl Harbor, Hickam and Schofield Barracks supports long-term rents.
On Maui, Kihei, Wailea, Kahului and Wailuku are common markets, and Lahaina is rebuilding after the 2023 wildfire. On the Big Island, Kona and Waikoloa draw vacation buyers, and Hilo has lower prices and long-term rentals. On Kauai, Princeville and Poipu have high-value resort-area homes.
| Island | Common large-bridge collateral | Main local question |
|---|---|---|
| Oahu | Single-family homes, small multi-unit | STR limits outside resort zones |
| Maui | Homes and condos, rebuilding areas | Vacation rental zoning and phase-out rules |
| Big Island | Kona vacation homes, Hilo rentals | Lava zone and insurance |
| Kauai | Resort-area homes | Permitted vacation rental status |
Hawaii requests above $1M usually involve:
Bridge financing here is short-term and interest-only, from $150,000 up to $5M+ with rates from 7.99%. A $1M+ request gets case-by-case review: we want to see the property, a realistic exit and enough cash left after closing to carry the loan.
Larger balances usually need a full valuation rather than a desktop estimate. Getting it scheduled early is what keeps a close in as little as 10 days on the table.
Hawaii charges a conveyance tax on sales, with higher rates as the price rises and a separate, higher schedule for residential property where the buyer is not eligible for a homeowner exemption, which includes investors. On a $2M purchase this can be significant.
Each county sets its own property tax rates and classes. Honolulu taxes many non-owner-occupied homes above a value threshold in a higher Residential A class, and other counties have their own non-owner-occupied or vacation rental classes. Check the class that will apply to your property.
General excise tax and transient accommodations tax also apply to rental income, and vacation rentals pay both. Those taxes come out of your revenue, so include them when you estimate what the property will net.
This example is illustrative and not a quote. An investor buys a fee-simple Kailua home with a permitted accessory unit for $1,850,000. Both units need updating, and the main house is vacant.
Both units are updated and leased to long-term tenants, and the property refinances on the combined rent.
At 55% LTV the investor brings cash to retire the bridge, which is common in Hawaii where rents are low relative to prices. Long-term rents are used because short-term rentals are limited in this area.
Honolulu limits short-term rentals outside resort-zoned areas and permitted units, so most Oahu investors lease for longer terms. Maui County has acted to phase out many vacation rentals in apartment-zoned areas, and Kauai and the Big Island have their own permit systems.
Rules change and are often challenged in court, so confirm the current status of any vacation rental permit or zoning before you buy, and plan for a long-term lease if short stays are not clearly allowed.
Some Hawaii properties, especially condos and some older homes, are on leasehold land, where you own the building but lease the land. Lease terms, remaining years and lease rent affect value and financing, so confirm whether a property is fee simple or leasehold early.
On the Big Island, lava hazard zones affect insurance availability and cost, and some areas near Kilauea are hard to insure. Across the islands, older homes may have single-wall construction, termite damage or unpermitted additions. A careful inspection and permit history check help avoid surprises during the valuation.
There are two common exits: sell the property, or refinance into a long-term DSCR loan that qualifies on rent rather than personal income. For balances around $1.5M and up, that refinance is a jumbo DSCR loan, and leverage on the larger balance varies by program.
Seasoning before a cash-out refinance also varies by program, so ask about it up front if you plan to pull equity out after the bridge.
Use the form below or call (877) 298-1001. These items let us move straight to terms:
Leasehold properties are reviewed case by case. The remaining lease term and lease rent matter a lot.
Only where the property is in a resort zone or has a valid permit. Otherwise, plan on long-term rents.
Prices are high relative to rents, and larger loans often get lower leverage, so a lower LTV is often needed to reach 1.0x.
Generally yes. Residential purchases by buyers who are not eligible for a homeowner exemption use a higher schedule.
Plan on it. Larger balances usually need a full valuation, and getting it scheduled the first week is what keeps a quick close possible.
As little as 10 days. The valuation and title search are what usually decide whether you hit that.
From $150,000 to $5M+ on 1-8 unit rentals, with the largest balances reviewed individually.
Yes. We offer DSCR and jumbo DSCR loans as the takeout, qualifying on the property's rent with LLC borrowers standard.
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