Last Updated: April 23, 2025

At OfferMarket, we’re dedicated to empowering you to build lasting wealth through real estate investment opportunities across Hawaii. To support your journey, we provide a fully integrated platform including:

💰 Tailored private lending

☂️ Competitive insurance rate shopping

🏚️ Exclusive off-market properties throughout the Hawaiian islands

Our Bridge Loan program in Hawaii offers quick, reliable, and cost-effective financing specifically for acquiring and renovating 1-4 unit residential investment properties across the state.

Whether your goal is to quickly flip a property in Oahu for profit or create long-term rental income on Maui by refinancing into a DSCR loan, we are eager to support your real estate ambitions and help drive your success.

Let’s dive into the OfferMarket Hawaii Bridge Loan Program!

What is a bridge loan?

A bridge loan provides short-term financing until you secure a more permanent funding solution.

Typical bridge loan scenarios in Hawaii

Hawaii real estate investors frequently utilize bridge loans to:

• Purchase and renovate distressed properties without tying up substantial personal funds.
• Refinance properties bought in cash for quick closings, tapping into equity to complete renovations.
• Refinance current loans to finish ongoing renovation projects, buying time until selling or refinancing into rental loans.
• Acquire undervalued properties off-market intending to resell "AS IS" for a profit.
• Cash-out refinance on properties bought below market value to free capital for additional investment opportunities.
• Refinance completed renovation projects to gain flexibility in timing a sale or refinance.

In Hawaii’s real estate community, bridge loans are also widely known as "hard money loans" or "fix-and-flip loans."

How does it work?

Bridge loans consist of:

• Initial Advance: Funds towards your property's purchase, wired directly at settlement.
• Construction Holdback: Funds released as draw reimbursements for property renovations.

Hawaii investors enjoy flexibility—you can utilize either or both components based on your unique project strategy. While many investors leverage both, some opt solely for an initial advance or a construction holdback, depending on their financial plans.

Exit strategies in Hawaii

Your primary exit strategies include flipping for profit or refinancing into a longer-term rental loan such as a DSCR loan. Market conditions in Hawaii often influence investor strategy shifts, making dual exit strategies ideal for risk mitigation.

For instance, you might initially plan a BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy on Kauai but find flipping more profitable if rental demand softens. Conversely, you might switch from flipping to renting if the Honolulu market cools temporarily, refinancing into a DSCR loan until conditions improve.

Who typically uses bridge loans in Hawaii?

• Fix-and-flip investors
• BRRRR investors

Discover our Fix-and-Rent bundle: bridge loan plus discounted DSCR loan refinancing options specifically designed for Hawaii’s market.

Our Hawaii clients frequently combine flipping and rental strategies, optimizing their investments according to market shifts.

Hawaii Bridge Loan Program Guidelines

Project Eligibility in Hawaii

At OfferMarket, our mission is to help you build wealth through real estate investments across the Hawaiian Islands, and a major part of that mission is helping you actively manage risk. Throughout our lending history, less than 0.5% of our loans have ever defaulted and required foreclosure. This is a track record we are incredibly proud of, and we work hard every day to maintain one of the lowest default rates in the private lending industry.

For Hawaii-based investors, we emphasize thoughtful project selection. Borrowers with little to no experience who take on challenging projects—especially "heavy" or "extensive" rehabs—may face greater financial risks. These types of projects are more likely to encounter delays, cost overruns, and negative market fluctuations, even in Hawaii’s dynamic real estate landscape. This remains true even for experienced investors when market conditions are volatile.

At OfferMarket, we don’t just lend capital—we partner with you as your deal advisor, risk manager, and financing provider. Our structured rehab scope classification system, outlined below, helps set clear and transparent expectations, so you can safely scale your real estate investment business across Hawaii.

Initial Advance

The amount we offer as your initial advance depends on both borrower-specific and deal-specific factors. Specifically, we review the number of investment properties you’ve owned in the last 24 months and the number of comparable, verifiable rehab projects you’ve successfully completed in the last five years.

• Minimum credit score: 680 (720+ preferred for personal guarantors)
• Preferred status: Increased leverage for licensed Hawaii Realtors, General Contractors, and Professional Engineers.

If the property’s purchase price exceeds the "As Is" valuation (based on appraisal or our in-house evaluation), the initial advance will be based on the As Is value—not the contract purchase price.

Your exit strategy also affects your initial advance:

• If selling: Minimum 30% projected gross margin and $15,000 projected profit.
• If renting and refinancing: Minimum DSCR of 1.1 after repairs.

For rural properties on the outer islands (or rural-designated areas like parts of the Big Island), initial advances are limited, and borrowers must have at least Tier 3 experience.

Experience-Based Tiers

Initial Advance by Tier

*85% available for Tier 1 borrowers with exceptional credit and liquidity.

Adjustments to Initial Advance

Rehab Scope Classification

Rehab Scope Eligibility

LTARV Limits (Loan-to-After-Repair Value)

LTFC Limits (Loan-to-Full-Cost, Extensive Only)

Example Scenarios

Scenario 1: No Experience

• Purchase Price: $100,000
• Tier: 1 (0 similar verifiable experience)
• Credit Score: 695
• Rehab Budget: $24,000
• ARV: $150,000
• Initial Advance: $75,000 (75%)
• Construction Holdback: $24,000
• Total Loan: $99,000
• LTARV: 66%
• LTFC: 79.8%
• Interest Accrual: Full Boat

Scenario 2: No Experience, Excellent Credit

• Same deal, 750 credit score → Initial Advance: $80,000 (80%)
• Total Loan: $104,000
• LTARV: 69.33%
• LTFC: 83.9%
• Interest Accrual: As Disbursed

Scenario 3: Experienced Investor (5 Completed Projects)

• Purchase Price: $100,000
• Tier: 4 (5 similar verifiable experience)
• Credit Score: 750
• Rehab Budget: $20,000
• ARV: $150,000
• Initial Advance: $90,000 (90%)
• Construction Holdback: $20,000
• Total Loan: $110,000
• LTARV: 73.33%
• LTFC: 91.67%
• Interest Accrual: As Disbursed

Refinance Using As-Is Value Instead of Cost Basis

At OfferMarket Hawaii, our typical underwriting approach is centered around lending based on your cost basis, which includes your total purchase price plus any capital expenditures or sunk costs. This ensures that every borrower maintains meaningful equity—or "skin in the game"—within the transaction.

However, in certain refinance scenarios where your property has seasoned over time and its current "As Is" value is higher than your original cost basis, we may approve leverage based on that increased As Is value. This flexibility is available for Hawaii real estate investors seeking to unlock additional capital for renovation or other investment purposes.

In these scenarios, we carefully evaluate your project against the following eligibility criteria:

Eligibility Requirements for As-Is Refinance

• Property condition: Must be habitable (C4 condition or better); properties in significant disrepair are not eligible.
• Seasoning period: Property must be seasoned for 3+ years.
• Payoff lender: Cannot be a bridge lender or construction lender. Payoff loans with default interest, extension fees, or late penalties are not eligible.
• Minimum credit score: 680+
• Experience requirement: Tier 3 or higher (minimum 4 similar completed rehab projects).
• Value support: Clear market comps must justify that the As Is value exceeds cost basis.
• Rationale: Must be a logical scenario (e.g., property was leased for three years, tenants have vacated, and now the investor intends to renovate before listing for sale).

Transactions Involving Wholesalers or Price Run-Ups

If your refinance scenario involves a wholesaler, we allow the assignment fee or double-close price increase to be included in your loan's value basis—up to 20% of the A-B contract price (original seller to wholesaler). Any markup above 20% must be funded with borrower equity.

Example Scenario

Wholesaler Transaction Guidelines

• Assignment fee / double-close markup capped at 20% of A-B price.
• If the property was listed on MLS, OfferMarket may exclude the assignment fee from financing.
• Full chain of contracts/assignments (A-B, B-C) required.
• Wholesaler’s operating agreement must be provided.
• Finders' fees and referral fees are not eligible for financing.
• Transactions must be arm’s length.

Construction Holdback

The construction holdback portion of your loan is disbursed via draw request and reimbursement as you achieve progress on your renovation scope of work. For Hawaii investors who have sufficient liquidity and choose to fund their rehab costs independently, construction holdback is optional.

Key Guidelines for Draw Processing

Interest Accrual:

• Loans under $100,000: Full Boat interest accrual.
• Loans $100,000 and above: As Disbursed interest accrual (only on funded balance).

Appraisal and Valuation Guidelines

All Hawaii bridge loans require a valuation. Depending on your deal specifics, we may use one of the following methods:

In-House Valuation (Eligibility Criteria)

Note: Even if eligible for in-house valuation, OfferMarket reserves the right to request a third-party appraisal.

Exterior Appraisal

Exterior-only appraisals are acceptable under these circumstances:

• REO sale
• Foreclosure auction
• Sheriff’s sale
• Online auction
• Bankruptcy sale

Exterior appraisals must be dated within 120 days of settlement. If older than 120 days (but less than 180 days), recertification is required.

Interior Appraisal

Any deal outside the scenarios listed above requires a full interior appraisal:

Appraisal Transfer Guidelines

If your appraisal was not ordered by OfferMarket but you'd like to transfer it, we can accept it under these conditions:

• Ordered via an approved appraisal management company (AMC).
• Appraisal must be less than 180 days old at closing.
• Appraisal must be re-certified if between 120 and 179 days old at closing.
• Transferring lender must provide:
  • Signed transfer letter certifying compliance with Appraiser Independence Requirements (AIR).
  • PDF and XML versions of the appraisal report.
  • Paid appraisal invoice.

Loan requests will be placed on HOLD status if the appraisal invoice remains unpaid.

Scenario: Stabilized Bridge Loan

For properties across Hawaii that are stabilized and ready for rent or sale, meaning they have no deferred maintenance and achieve an appraisal condition rating of C4 or better, OfferMarket Hawaii offers a specialized financing option called the Stabilized Bridge Loan. In this scenario, we appraise the property on an "As Is" basis and fund up to 75% of the current As Is value—perfect for investors holding properties in good condition who want to leverage their equity efficiently.

Stabilized Bridge Loan Criteria

Key Loan Details

Loan Extensions

Bridge loans are intended to be short-term financing solutions, typically repaid well within 12 months. Extensions are available but should be used sparingly, as they add fees, increase interest costs, and elevate the risk of foreclosure if the loan remains unpaid after the extension period.

Best Practices to Avoid Extensions

To reduce the likelihood of needing an extension on your Hawaii bridge loan, avoid these common risk factors:

• Working with general contractors who lack experience or strong references.
• Selecting aggressive rehab scopes relative to your experience and liquidity.
• Investing in areas with slow zoning or permitting processes.
• Entering projects where immediate access to the property is restricted (e.g., tenant-occupied with remaining lease, holdover situations requiring eviction).
• Failing to maintain a dual exit strategy (sale and/or refinance).

Extension Limits

Extensions are offered in 3-month or 6-month increments depending on your project's needs.

Extension Terms and Fees

Note: Your builder’s risk insurance policy must remain active and valid for the full duration of the extension period.

Ineligible Property Types

OfferMarket Hawaii does not fund stabilized bridge loans for the following property types:

• Mixed-use properties
• 5+ unit multifamily
• Condotels
• Co-ops
• Mobile or manufactured housing
• Commercial properties
• Cabins or log homes
• Properties with oil or gas leases
• Working farms, ranches, or orchards
• Vacation or seasonal rentals without necessary permits (e.g., NUC)
• Unique, exotic, or ultra-luxury properties
• Properties accessible only by unpaved or dirt roads

Exception Scenarios

On a case-by-case basis, we may allow exceptions for:

• 660–679 guarantor credit score
• Leasehold (ground rent) properties
• Single family properties 500–699 sq ft
• 2-4 unit properties with one or more units between 400–499 sq ft
• Initial advance funded on "As Is" value exceeding cost basis
• Non-arms-length transactions
• Financed interest payments

Extensions, eligibility, and exception scenarios remain subject to full underwriting review and loan committee approval.

Borrower and Guarantor Requirements

At OfferMarket Hawaii, we prioritize working with financially responsible investors. The following borrower and guarantor requirements are designed to ensure strong alignment between our capital and your project success.

Borrowing Entity Eligibility

Credit Requirements

Guaranty Structure

Liquidity Requirements

To support your project with a healthy financial buffer, we require proof of liquidity equal to your estimated cash to close plus 25% of your rehab budget across one or more guarantors.

Eligible Liquid Assets:

• Personal bank accounts.
• Business bank accounts (including borrowing entity or affiliated entities with verified operating agreements).
• Personal or business brokerage accounts.
• Retirement accounts (subject to a 50% reduction due to restricted access).

Verification:

• Provide two (2) most recent statements for each account.
• No seasoning required for new accounts.
• Letter of Explanation (LOE) required for large deposits.

💡 You are not required to transfer funds into a specific account—funds simply need to be verified as available.

Credit and Background Review

Interest Reserves

Interest reserves are collected at closing and held in escrow. If applicable, these reserves are drawn down to cover your accrued interest before monthly payments are required from your bank account.

Financed Interest Payments

To help maintain your liquidity throughout the project, OfferMarket Hawaii may offer the option to finance interest payments—adding accrued interest to your final payoff balance rather than requiring monthly payments.

Example of Financed Interest

Property Sourcing Guidelines

Bridge Loan Insurance Guidelines

Proper insurance coverage is required to protect your project and investment. Bridge loan insurance (Builders Risk or Fix-and-Flip insurance) is mandatory for all funded deals.

Required Coverages and Limits

Policy Requirements

💡 Pro Tip: Upon acquiring the property, immediately install smoke detectors, locks, and security cameras to meet insurance compliance and reduce risks of denied claims.

Frequently Asked Questions

Which states does OfferMarket fund bridge loans in?

OfferMarket provides bridge loan funding across a wide range of states, including Hawaii. Below is the complete list of eligible states:

• Alabama

• Arizona

• Arkansas

• California

• Colorado

• Connecticut

• Delaware

• Florida

• Georgia

• Hawaii

• Idaho

• Illinois

• Indiana

• Iowa

• Kansas

• Kentucky

• Louisiana

• Maine

• Maryland

• Massachusetts

• Michigan

• Mississippi

• Missouri

• Minnesota

• Montana

• Nebraska

• Nevada*

• New Hampshire

• New Jersey

• New Mexico

• New York

• North Carolina

• North Dakota

• Ohio

• Oklahoma

• Oregon

• Pennsylvania

• Rhode Island

• South Carolina

• South Dakota

• Tennessee

• Texas

• Utah

• Vermont

• Virginia

• Washington

• Washington DC

• West Virginia

• Wisconsin

• Wyoming

  In some states where a NMLS license is required for business-purpose lending or where OfferMarket does not lend directly, we operate as a rate shopping service, referring your loan to a licensed local capital provider.

Can I have more than one bridge loan at a time with OfferMarket Hawaii?

Yes, you can maintain multiple bridge loans simultaneously. Many OfferMarket clients across Hawaii and the mainland manage several projects at once. However, we carefully assess your liquidity and pace of project execution to ensure that taking on additional loans remains financially safe for you. If we believe the additional loan may increase your risk exposure, we will raise this concern and work with you to structure a safe solution.

Are bridge loans considered commercial loans?

Yes. Bridge loans through OfferMarket Hawaii are classified as business-purpose commercial loans. These loans are issued to your borrowing entity (LLC or Corporation) rather than to you as an individual.

What is the minimum loan amount?

The minimum loan amount for OfferMarket Hawaii bridge loans is $25,000.

Which property types are eligible for Hawaii bridge loans?

We fund non-owner occupied 1–4 unit residential properties, including:

• Single-family residences
• Townhomes
• Small multifamily (2–4 units)
• Warrantable condominiums

Not eligible in this program:

• 2–4 unit mixed-use properties
• 5–9 unit mixed-use properties
• 5–9 unit multifamily properties
• 10+ unit residential or any non-residential commercial real estate (e.g., retail, office, industrial)

How is Loan-to-Value (LTV) calculated?

In our Hawaii bridge loan program:

• LTV refers to Loan-to-As-Is-Value (current value).
• LTARV refers to Loan-to-After-Repair-Value (expected value after rehab).

For purchase loans, the initial advance is based on the lower of the As-Is value and the purchase price in your contract (or the purchase price from your previous closing if it’s a refinance).

The total loan amount (initial advance + construction holdback) divided by the ARV (determined by appraisal or in-house valuation) gives you the LTARV.

What are the credit requirements for Hawaii bridge loans?

• Minimum FICO score: 680.
• Exceptions: Borrowers with scores between 660 and 679 may be considered on a case-by-case basis.
• We evaluate the credit score of each personal guarantor involved in the borrowing entity—not non-guarantor members.

Do I need prior real estate experience to qualify?

No, experience is not required to qualify for a Hawaii bridge loan. However, your experience level will impact your eligible leverage and loan terms through our Experience Tier system. The more verifiable completed rehab projects you have, the greater the leverage you may qualify for.

To validate experience, our underwriting team will review the Track Record section of your Loan File. Supporting documents may include settlement statements and operating agreements.

Does wholesaling count toward experience?

No. Acting as a wholesaler on a transaction does not count as experience toward our Experience Tier system, since wholesalers are not financially responsible for completing the rehab.

What documentation is required for Hawaii bridge loan approval?

Our Loan File system streamlines the documentation process and securely stores your information for future transactions.

Documentation for Purchase Transactions

Documentation for Refinance Transactions

Are there special requirements for Hawaii loans over $1 million?

Yes. Loans over $1 million (up to the $2 million program maximum) are subject to additional guidelines:

Glossary of Key Terms

Get Your Hawaii Instant Bridge Loan Quote

OfferMarket Capital LLC is Hawaiʻi’s go‑to private lender for bridge and DSCR loans. Thousands of investors nationwide rely on our platform for:

💰 Private lending
☂️ Insurance shopping
🏚️ Off‑market deals
💡 Market insights

Membership is free. Let’s partner on your next Big Island bungalow, Maui multiplex, or Honolulu condo conversion today!

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Thousands of real estate investors get value from OfferMarket every month. Membership is entirely free and includes the following benefits:

💰 Private lending
☂️ Insurance rate shopping
🏚️ Off market properties
💡 Market insights

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