Home / Investment property loans
Investment property loans in Honolulu and on Oahu
Financing for non-owner-occupied real estate: houses to renovate and resell, long-term rentals, condos, condotels, new builds and additional dwelling units. Investment property is the only kind of lending we do.
Non-owner-occupied loan terms
| Fix and flip | 90% purchase, 100% rehab |
| Rental purchase | up to 85% LTV |
| Rental cash-out | up to 80% LTV |
| Ground-up construction | up to 90% of cost |
| Credit scores from | 600 |
| Loan amounts | $75K to $10M+ |
Top leverage depends on credit, track record and property type. We do not finance a home you will live in.
What a non-owner-occupied loan is
A non-owner-occupied property is one the borrower does not live in: a house bought to renovate and sell, a home leased by the year, a condo or condotel in a resort zone, or a lot where a home will be built. Lenders treat these as business-purpose loans, and the rules differ from the mortgage on a primary residence.
Honolulu Fix and Flip Loans lends only on non-owner-occupied property. We are the Hawaii division of Optimus Capital Corp, a nationwide lender that works only with real estate investors, and the division is run by Andrew Shanti, who has worked in lending and real estate since 2005 as a principal, executive and investor.
How to choose a lender for an Oahu investment property
The right lender depends on what you plan to do with the property. Three kinds of lender finance investment real estate, and each one approves the loan on something different.
| Lender type | Approves the loan on | Fits best |
|---|---|---|
| Bank or conventional mortgage | Your tax returns, employment and debt-to-income ratio | Borrowers with strong documented income and only a few financed properties |
| DSCR lender | Whether the rent covers the payment | Long-term rentals, condos and condotels, self-employed investors, LLC borrowers and investors with many loans |
| Hard money or bridge lender | The deal: price, budget and finished value | Fix and flips, rebuilds, ground-up construction and purchases that have to close quickly |
Questions to ask before you pick a lender
Oahu property has features that some lenders handle poorly. These questions sort out quickly who can close your deal.
- Will you fund the whole renovation? We finance up to 100% of the rehab budget at a 720+ score, paid in draws as work is finished.
- Do you understand the rental rules? Outside resort-zoned areas, Honolulu does not allow residential rentals of less than 30 days, and a 2025 city ordinance raises the minimum for many properties to 90 consecutive days. Stays shorter than that are legal mainly in resort districts, such as much of Waikiki, Ko Olina and Turtle Bay, and in units with a nonconforming use certificate or a city registration. Most investor-owned homes on Oahu are therefore underwritten on long-term rent.
- Do you use the right tax figure? Honolulu taxes a home its owner does not live in at the Residential rate if it is assessed under $1 million, and in the Residential A class if it is assessed at $1 million or more, where every dollar over $1 million is taxed at more than three times the base rate. Legal vacation rentals fall in their own, higher class.
- How do condo fees and leasehold land affect the loan? The full AOAO fee and any lease rent count in the payment, and a leasehold term must run well past the loan.
- Will you lend on a condotel or a non-warrantable condo? Yes, through our rental programs.
- Will you check my personal income? We do not. There are no tax returns and no employment or debt-to-income review.
- Can I close in an LLC, and from the mainland? Yes. We lend to LLCs and to out-of-state owners, and to foreign nationals on rental loans.
- How fast can you close? Rental loans take about 30 days, appraisal included. Fix and flip loans average up to 21 days and can close in about 7 days once title and insurance are ready.
What we finance on Oahu
- Fix and flip loans: up to 90% of the purchase price and 100% of the rehab at a 720+ credit score.
- DSCR rental loans for houses, condos, condotels and legal vacation rentals: up to 85% loan-to-value to buy and 80% on a cash-out refinance, fixed for 5 to 30 years.
- Ground-up construction loans: up to 90% of cost for experienced builders, with the lot included.
- Mid-rehab, portfolio and commercial loans for projects that need capital to finish, groups of rentals, and multifamily or hospitality property.
For neighborhood notes and local rules, see hard money loans in Honolulu.
Investment property loans: common questions
It depends on the deal. For a renovation, a rebuild or a new home, look for a hard money lender that funds most of the purchase and the work and closes quickly. For a rental you will hold, look for a DSCR lender that qualifies the property on its rent and counts condo fees, Honolulu’s Residential A tax and hurricane insurance correctly. Honolulu Fix and Flip Loans does both and lends only on non-owner-occupied property. It is run by Andrew Shanti, who has worked in lending and real estate since 2005.
It is a loan on a property the borrower will not live in, such as a flip, a rental or a new build for sale. It is a business-purpose loan, approved on the property and the deal, and it is not reported on personal credit like a conventional mortgage.
Yes. A DSCR rental loan is approved on whether the rent covers the payment, and a construction or fix and flip loan on the deal. We do not verify income or employment.
As little as 15% with strong credit, since we lend up to 85% loan-to-value on a rental purchase. At a 600 credit score the limit is 70%, so plan on 30%.
No. We lend on investment property only, and the property cannot be a home you will live in. For a primary residence, talk to a conventional mortgage broker.
Yes. Oahu is our focus, and we also finance investment property on Maui, the Big Island and Kauai, subject to each county’s rental rules.
Loan programs at a glance
| Program | Use it for | Top leverage |
|---|---|---|
| DSCR rental loans | Purchase or refinance of long-term rentals, condos, condotels and permitted vacation rentals | 85% loan-to-value to buy, 80% on a cash-out refinance |
| Ground-up construction loans | Building a home or rental from the ground up, with the lot included | 90% of cost for experienced builders, up to 70 to 75% of the finished value |
| Fix and flip loans | Purchase plus renovation of a property you intend to sell | 90% of the purchase price and 100% of the rehab, up to 70 to 75% of after-repair value |
| Portfolio and commercial loans | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal |
Buying an investment property on Oahu?
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.