Home / Loan programs / Fix and flip loans
Fix and flip loans in Honolulu and on Oahu
Bridge financing for investors who buy, renovate and resell. One loan covers up to 90% of the purchase and the entire rehab budget.
Fix and flip loan terms
| Purchase financed | up to 90% |
| Rehab financed | up to 100% |
| Cap on after-repair value | 70 to 75% |
| Credit scores from | 600 |
| Term | 6 to 24 months |
| Payments | interest only |
| Average closing | 21 days or less |
The 90% and 100% figures apply at a 720+ credit score. Below that, leverage and pricing adjust down to a 600 minimum.
How the loan amount is worked out
The loan is built from two numbers. The first is a share of what you pay for the property. The second is your renovation budget, which is held back and paid out in draws as each stage of work is finished. The two together are limited to 70 to 75% of the after-repair value (ARV): the price the property should bring once the work is complete.
Example
| You buy the house for | $850,000 |
| Your rehab budget is | $180,000 |
| Expected resale value (ARV) | $1,350,000 |
| 90% of the purchase | $765,000 |
| 100% of the rehab | $180,000 |
| Loan amount | $945,000 |
| 75% of ARV, the ceiling | $1,012,500 |
| Down payment, before closing costs | $85,000 |
How experience and credit change the terms
- First deal? You can still qualify. A new investor with a 720+ score is eligible for the full 90% and 100%.
- Five or more flips in the past two years? You can close with no inspection and no appraisal, up to 75% of ARV.
- Score under 720? Programs run down to 600, with less leverage.
Experience is counted as properties you bought and sold in the past 24 months that were acquired within the past 36 months.
Built around a resale
- Interest-only payments while you renovate
- 6 to 24 month terms
- No prepayment penalty: pay off the day you sell
- No income or job verification
When a project stalls: mid-rehab loans
If a renovation is under way and the money has run out, a mid-rehab loan lends on the property as it stands today and adds the funds to finish.
What an Oahu flip involves
- Permits take time. Building permits from the City’s Department of Planning and Permitting can take months for work that changes structure, plumbing or electrical. Get your design professional and contractor to estimate the permit timeline, and carry that time in your budget.
- Older single-wall and plantation-era houses. Much of Oahu’s housing stock was built before the 1980s, often with single-wall construction, termite damage and undersized electrical. Order a termite inspection early and price what it finds.
- Unpermitted work. Enclosed carports, added bedrooms and converted garages are common. A buyer’s lender or appraiser may not count them, so plan to permit or remove them.
- Flood and coastal areas. Parts of Waikiki, Kakaako, Ewa Beach, Kailua and the North Shore are in FEMA flood zones. Check the zone before you buy, and in a flood zone, a large renovation can trigger the rule that the house be brought up to current flood standards.
- Where the deals are. Older neighborhoods in Kalihi, Kaimuki, Pearl City, Waipahu, Wahiawa and Kaneohe have the housing stock most flips start from.
Documents we ask for
- Loan application
- Signed purchase contract, or the settlement statement from your purchase if you are refinancing
- A rehab budget broken into line items with a clear scope of work
- Contact details for your insurance agent and escrow company
- For an LLC: articles of organization, EIN letter and operating agreement
- For experienced investors: your projects from the last 3 years with settlement statements
The full list is in our hard money loan document checklist.
Fix and flip loans: common questions
As much as 90% of the purchase price and 100% of the renovation budget, provided the total loan is no more than 70 to 75% of the after-repair value. Those figures apply to borrowers with a credit score of 720 or higher.
The average is up to 21 days. Once title work and insurance are ready, a loan can close in about 7 days. Hawaii closings are handled by an escrow company.
No. First-time investors can qualify. Investors who have completed 5 or more flips in the past 2 years get a shorter process with no inspection or appraisal.
They extend the time you carry the loan. Our flip loans run 6 to 24 months, so choose a term that covers a realistic permit timeline as well as the construction itself.
No. Fix and flip loans carry no prepayment penalty.
Yes. When the work is done, a DSCR rental loan can replace the fix and flip loan, with a cash-out refinance at up to 80% loan-to-value.
No. We lend on investment property only.
Under contract on a flip?
Send the address, the price and what you plan to do with the property. We will reply with the leverage and pricing that fit your deal.