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Table of contents

DSCR Loan Hawaii

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DSCR Loan Hawaii Example Deal

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DSCR Loan Hawaii calculation

DSCR Loan Requirements

DSCR Loan Hawaii Common Questions

What areas of Hawaii do you serve?

In short, we serve all of Hawaii. However, we keep watch of local trends, and while we are remote, non-local observers, we do have an interesting vantage point due to the deals that come across our desk. Here are some general and more specific observation regarding different, attractive areas of this great island state. Tourism is a major economic driver behind the economic success of Hawaii, with visitor arrivals expected to rise by 4.5% annually over the next 5 years, while population growth is projected to be 2.1% annually for the same period, fueled by mainland migration seeking a better quality of life. To accommodate this jump in permanent and transient population, several infrastructure projects are in the works, which should bolster local real estate valuations.

  • Kahului Airport Expansion - To be completed by 2026, with an estimated capacity increase of 20% for incoming tourists.
  • Honolulu Rail Transit - Completion date estimated to be 2027. This will improve accessibility within Oahu, potentially creating 1,500 construction jobs annually until completion.
  • Kona International Airport Improvement Project - Upgrades expected to be finished by 2025, aiming to handle 10% more incoming flights annually.

Now let's look at specific areas and related zip codes where we see the greatest opportunities for real estate investors.

Oahu (Honolulu, HI) - We expect a steady population growth, with an estimated 30,000 new residents expected in the next 5 years. Tourism (largest employer - various hotels & resorts, total employees: 70,000, projected growth: 5% annually), Government (25,000 employees), Military (40,000 active personnel).

  • 96813 (Downtown Honolulu) - High demand for rentals due to proximity to job centers, walkability, and nightlife. Rents could rise by 5-7% annually as new residents and tourists arrive.
  • 96821 (McCully/Moiliili) - Established neighborhood with good schools (Moiliili Elementary and Punahou School) and proximity to the University of Hawaii at Manoa (20,000 students). Rents could increase by 3-5% annually due to a shortage of available units.
  • 96790 (Ewa Beach) - Developing suburban area with new projects like Hoopili. Improved infrastructure like the proposed Ewa By-Pass Road (completion expected by 2028) could make Ewa Beach more attractive, leading to rent growth of 4-6% annually.

Maui (Kahului, HI) - We expect a moderate growth, with an estimated 15,000 new residents expected in the next 5 years. Tourism (largest employer - various hotels & resorts, total employees: 20,000, projected growth: 3% annually), Healthcare (10,000 employees, projected growth: 4% annually), Retail (15,000 employees, projected growth: 2% annually).

  • 96732 (Kahului): The commercial center of Maui with a growing job market, especially near the Maui Business Park. Limited land availability could restrict housing construction, putting upward pressure on rents, with potential increases of 3-4% annually.
  • 96761 (Wailea): Upscale resort area with high rental demand due to tourism and luxury accommodations. Rents could remain stable or increase slightly by 1-2% annually as tourism rebounds.
  • 96753 (Kihei): Popular tourist destination with a mix of vacation rentals and long-term rentals. Rents could fluctuate based on tourism seasonality (10% difference between peak and low season) but have potential for long-term growth of 1-2% annually.

Big Island (Hilo, HI & Kailua-Kona, HI) - We expect a slow but steady growth with pockets of faster growth in certain areas. The Big Island's population is expected to increase by 10,000 over the next 5 years, with most concentrated in Hilo and Kailua-Kona. Again, tourism is the largest employer with total of 15,000 employees island-wide, with a projected growth of 2% annually, University of Hawaii at Hilo (4,000 students, projected growth: 1% annually), Tech Sector (Kailua-Kona, concentrated in tech startups, current employment: 1,000, projected growth: 10% annually).

  • 96720 (Hilo): The largest city on the Big Island with a growing university and innovation center attracting young professionals. Rents might be lower compared to Kona but could rise by 3-4% annually as the economy diversifies.
  • 96740 (Kailua-Kona): Major tourist destination with a growing tech sector. Limited land availability, especially near the coast, could restrict housing construction, leading to rent growth of 4-6% annually.
  • 96743 (Captain Cook): Located south of Kailua-Kona, Captain Cook offers a more relaxed atmosphere with potential for future development, especially after the completion of the Kona International Airport Improvement Project. Rents could increase by 2-4% annually as the area becomes more established.

How Do DSCR Loans Work in Hawaii?

The overall process of getting a DSCR Loan in Hawaii is approximately as follows. You submit an application for a loan (you can get started on your loan with an instant quote) answering 14 questions about your property. An instant quote will tell you if you qualify for the loan in under 1 minute of your time. It will also show you the a preliminary interest rate and loan amount. Once you select desired LTV (which can be changed later), your quote will be converted to a Loan File for processing purposes.

You will have to submit documents as part of your Loan File for underwriting. Documents we may ask for will include personal and property documents such as purchase contracts, current leases, borrowing entity documents, deeds, title work (we will engage a title company or an attorney on your behalf to draw up these documents), background and credit reports (that we will order), bank statements for liquidity verification as well as other documents that may be applicable to your specific deal. Full list of requirements can be found here in DSCR loan requirements.

We will also handle all the aspects of scheduling and appraisal for you. Please note that we have a promotion, where new clients receive a 100% refund at closing for their appraisal and existing clients forever get a 50% refund for their appraisal at closing as our way to say thank you for allowing us to partner with you! Once all the loan documents are submitted, the Loan File goes through underwriting, at which point the underwriting committee may ask for additional documents depending on their discretion. Once the committee receives all the documents and approves the file, closing can be scheduled.

The closing, will be handled by the title company or at the office of closing attorney. Once closing is complete, funds will be wired. Post closing, the loan will be entered into servicing and you will receive information regarding setting up auto-pay or other options that may be available for your loan depending on the specific servicer's capabilities.

Can you lend on properties worth less then $100k?

In short, no, appraisal as is value must come in at above 100k. We can only lend on properties that are less then $100k if they are in a portfolio with other properties and the portfolio's total as-is value on the appraisal is above $250k. In order to qualify for our loans, the property must appraise for at least $100k as-is at the time of the appraisal, however, total loan amount may be less then 100k, minimum loan amount is $55k.

Do I need to have my property insured to qualify for funding?

Yes, but if you don't already have insurance, we can roll it into the lending process with no extra charge or effort to you. Our insurance team works with thousands of carriers and is intimately familiar with the insurance requirements of your loan. They will be able to ether talk to the agent of your choice or find the most competitive offer without our network of carriers to complement your loan with no extra effort or expense to you. If you already have insurance, you should get an instant quote to see if we can offer you a more competitive rate and save you thousands of dollars over the lifetime of your policy. Get you instant insurance quote here.

Do you do cash out refi no seasoning for Hawaii loans?

We do offer refinance options with no seasoning requirements. Here is the general criteria for cash out refi no seasoning for Hawaii loans. Minimum loan amount has to be above $55,000. Minimum As-Is value on the appraisal has to be $100,000. Between 1-4 units. Must have an active lease with proof of security deposit collected. Property condition must be C4 or better. Minimum credit score of 680. Credit score between 680 to 699, gets maximum LTV of 70%, credit score of 700+ gets maximum LTV of 75%. Max LTC, 100% (less than 90 days seasoning), 140% (90 to 179 days seasoning). Minimum verified rehab, 20% of purchase price (less than 90 days seasoning), n/a (90+ days seasoning). Minimum verified rehab, is an improvement that has been done to the unit to verify increase in as-is value in such as short period of time (less then 90 days) to justify the no seasoning period. Origination fee of 1 to 2 points depending on the loan amount to keep the lights on. Lender fee, $1,995 (doesn't go to OfferMarket), includes multiple fees to several different 3rd party verification services, necessary to certify the information in the Loan File for closing. Appraisal at AMC market price, we also have a promotion that new clients get 100% of their appraisal refunded at closing and 50% refund for existing clients. Time to close, 20-25 days.

I know this is a lot of information. You don't have to lift a finger to calculate any of this to see if you qualify, all you have to do is answer 14 simple questions about your deal and we will tell you if we are a good fit for you and what kind of deal we can offer you. To get an answer on your specific situation, please answer 14 simple questions here in our online quoter for Hawaii DSCR loans.

You can read more about our cash out refi no seasoning requirements or get started on your Hawaii DSCR loan.

How to get a DSCR Loan in Hawaii?

The easiest way to start your Hawaii DSCR loan is to click the start button next to "apply for DSCR loan" banners at the top or bottom of this page. OfferMarket's team has expansive experience working with real estate investors across Hawaii.

Are you able to lend on rural properties?

We can't lend on rural properties. How can I find out, if my property is rural? Here are more detail on how to verify if your property is rural in our Rural Designation Search Tools. The 2 search tools are hosted by USDA Rural Development Property Eligibility and CFPB Rural and Underserved Areas Checker. Both of the tools must flag the property as not rural for it to be eligible for our funding. Use these instruction to find out if your property is considered rural

What are the requirements for a DSCR loan in Hawaii?

If you scroll up on this page, you will see a simple checklist that details high level requirements for our DSCR loans in Hawaii. If you want a more detailed quote for your specific deal, click "start" next to "apply for a DSCR loan" and our online quoting system will produce an accurate quote based on 14 questions related to your deal. Most investors are able to get a complete quote in under a minute because those 14 questions most investors will know answers to. Our most detailed DSCR Loan Requirements can be found here. Once you complete an online quote, you can proceed to your Loan File, where you can peruse the Loan Terms which will detail all the fees and proceeds of the loan in one convenient interface. Get an instant loan quote and Loan File