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Hawaii Fix and Flip Loan

Apply for a Fix and flip loan in Hawaii

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Last Updated: April 9, 2025

Welcome to OfferMarket’s Fix and Flip Loan Program for Hawaii! Whether you’re a first-time investor or an experienced flipper, our program is designed to provide the flexibility and funding you need to succeed. Below, we’ve broken down the 12 essential details of the program so you can confidently apply for your loan and get started.

What You Get with OfferMarket’s Fix and Flip Loan in Hawaii

At OfferMarket, we offer a flexible fix-and-flip loan program tailored to your needs in Hawaii. Whether you’re a beginner or experienced investor, our program provides the funding, support, and competitive terms to help you succeed. Here's what you can expect when you choose OfferMarket for your next flip.

1. Loan Amount Details

Minimum: $25,000 – perfect for smaller flips or first-time investors.
Maximum: $2,000,000 – larger loans require 3+ years of experience and strong comps.
How It Works: Loan size is tied to your purchase price, rehab budget, and After Repair Value (ARV), ensuring you get the capital you need for your project.

2. After Repair Value (ARV) Requirements
Minimum ARV: $100,000 – ensures profitability for your project.
Maximum Loan-to-ARV (LTARV): Up to 75%, adjusted by experience:
- 70% for beginners (with light rehabs).
- 75% for experienced flippers (with moderate rehabs).
Valuation: We use appraisal reports (e.g., 1004 + 1007 for single-family properties) or in-house valuations for accurate ARV estimates.

3. Funding Breakdown
Initial Advance: Up to 90% of the purchase price:
- 80% for beginners (limited experience).
- 90% for experienced investors (5+ flips).
Construction Holdback: Up to 100% of rehab costs, disbursed through self-serve app-based draw requests with a 0-2 day turnaround.
Down Payment: Minimum $10,000 for properties under $100K.
Draws: No minimum or maximum; 50% of materials delivered but not yet installed will be funded.

4. Interest Rate and Fees

Interest Rate: Flexible, based on market fluctuations—contact us for a personalized rate.
Origination Fee: 1.5 to 2 points (e.g., 2 points on a $100,000 loan = $2,000 upfront).
Other Fees:
- $270 per draw.
- $30 per wire.
- Appraisal costs are the borrower’s responsibility.
Interest Accrual: For loans under $100K, interest is charged on the full loan amount ("full boat"). Loans of $100K+ only accrue interest on funds disbursed.

5. Loan Term
Duration: Standard loan term is 12 months, with flexibility for larger or complex projects.
Extensions: Extensions of up to 50% of the loan term are available (e.g., 6 months on a 12-month loan) for a fee:
- 1% for 3 months.
- 2.5% for 6 months.
  
  6. Repayment Structure
Payments: Interest-only payments with a balloon payment at maturity.
Prepayment Penalty: None – you can pay off your loan early without any penalties.
Recourse: Loans are full recourse. For purchases, 51% of your LLC or Corporation guarantees the loan; for refinances, 100% guarantees.

7. Exit Strategy Requirements
Sale: Aim for a minimum 30% ROI and a $15,000 profit.
Refinance: Target a 1.1 DSCR after repairs.
Flexibility: You can switch between flipping or renting based on market conditions, giving you multiple exit options.

8. Eligibility Criteria
Experience: Not required for beginners. Investors start at Tier 1 (80% advance). For experienced investors (10+ projects), you qualify for Tier 5 (90% advance).
Credit Score: Minimum 680, with exceptions for scores between 660-679.
Borrowing Entity: You must apply through an LLC or Corporation.
Cash Reserves: You’ll need enough cash to cover closing costs and 25% of your rehab budget in liquid assets (bank, brokerage, or retirement accounts).

9. Project and Property Requirements
Eligible Properties:
- 1-4 unit residential properties: single-family homes, duplexes, triplexes, quadplexes, condos, townhomes, and PUDs.
Minimum Property Size:
- 700 sq ft for single-family homes.
- 500 sq ft per unit for duplexes, triplexes, or quadplexes.
- 500 sq ft for condos.
Maximum Acreage: 5 acres, perfect for rural flips.
Rehab Scope: From light (under 25% of the purchase price) to extensive (100%+ of the purchase price), based on your experience level.
Location: We lend in Hawaii, excluding AK, AZ, HI, MN, ND, NV, OR, SD, UT, and VT. Rural areas may face a -20% advance adjustment and require at least 3+ years of experience.

10. Risk and Approval Process
Underwriting: We evaluate ARV, rehab scope, your experience, and local market conditions (e.g., Honolulu comps or Kauai liquidity).
Valuation: We use either appraisal reports or in-house valuations depending on your deal.
Approval Timeline: Draws take 0-2 days to process. The timeline for initial funding depends on how quickly you submit your documents—we aim for the fastest turnaround possible.
Default Rate: Less than 0.5% of our loans have ever defaulted, reflecting our dedication to your success.

11. Support and Flexibility
Guidance: We’re here to help at every step. As your dedicated deal advisor and risk manager, we offer calculators and rehab scope advice tailored to Hawaii's market. Whether you're flipping in Honolulu or rural areas, we have the insights to ensure your success.
Rehab Oversight: You have full control of the rehab process with self-serve draw inspections and progress tracking.
Advanced Draws: In certain situations, we provide advanced draws to ensure you have the necessary funding to keep your project moving forward. This is provided at our discretion based on your deal's needs.

12. Transparency and Fine Print
Sample Costs: Let’s look at a sample scenario to understand the costs for a $150,000 property in Hawaii:
- Purchase Price: $150,000
- ARV: $250,000
- Loan-to-ARV: Up to 75% = $187,500
- Initial Advance: Up to 90% of the purchase price = $135,000 (assuming you’re an experienced investor).
- Construction Holdback: Funding available up to 100% of rehab costs, to be requested through app-based draws.
Fees: Origination fee (2 points) = $3,000, Draw fees = $270 per draw, Wire fees = $30, Appraisal cost (borne by borrower).
Hidden Costs: Additional fees include:
- Draw fees ($270 per draw)
- Wire fees ($30 per wire)
- Extension fees (e.g., 1% for 3 months, 2.5% for 6 months). These fees are all discussed upfront to ensure no surprises during the process.
Rural/Complex Terms:
- Rural areas in Hawaii might face a -20% advance adjustment due to the more remote nature of the properties.
- Extensive rehabs (over 100% of the purchase price) may be capped at a 70% LTARV or 85-90% Loan-to-Full-Cost (LTFC), depending on the complexity of the project.

Why Fix and Flip Loan in Hawaii is a Good Choice

Hawaii’s real estate market offers significant opportunities for fix-and-flip investors. The island state is known for its unique housing market dynamics, driven by high demand and limited supply, especially in major cities like Honolulu, Maui, and Kauai. Additionally, Hawaii's popularity as a vacation destination and growing demand for housing make it an excellent market for property flips.

By securing a fix and flip loan through OfferMarket, you’re not only gaining access to substantial funding but also a partner who understands Hawaii’s market intricacies. We offer a flexible loan program tailored to both first-time flippers and seasoned professionals.

How You Can Make Profits with Our Fix and Flip Loan Program

Let’s say you’re eyeing a property in Honolulu with an estimated value of $150,000. Here’s how you can leverage OfferMarket’s Fix and Flip Loan to maximize your profits:

Property Purchase: You buy the property for $150,000.
After Repair Value (ARV): After completing the rehab, your ARV is projected to be $250,000.
Loan Amount: Based on our loan-to-ARV ratio of up to 75%, you could be eligible for a loan of up to $187,500.
Funding Advance: OfferMarket can provide up to 90% of the purchase price, or $135,000, depending on your experience.
Rehab Funding: You can also access up to 100% of the rehab budget via draw requests, giving you the necessary funds to complete the project.

Assuming the rehab costs are around $40,000, once you sell the property for $250,000, you’d be looking at a 30% return on investment (ROI) and a $15,000 profit after deducting loan fees, rehab costs, and other expenses.

With OfferMarket, you have the support and funding to make this scenario a reality in Hawaii’s real estate market.

Why Choose OfferMarket?

At OfferMarket, we’re committed to providing the best fix and flip loan program for Hawaii's real estate investors. Whether you're flipping a home in Honolulu, working on a project in Maui, or planning a rural flip in Hawaii's countryside, we offer:

Competitive loan terms with up to 90% funding.
Flexible repayment structures with no prepayment penalties.
Fast processing with quick draw requests and transparent fees.
Personalized support from our experienced team of advisors.

Ready to flip your next property in Hawaii? Request your loan today and take the first step toward profitable investments in Hawaii’s real estate market.

Hawaii Fix and Flip Loan: Documentation Requirements

For a smooth and efficient loan approval process, we require specific documentation. This helps us assess the details of your project and ensure compliance with the loan terms. Below are the key documents required for both purchase and refinance transactions in Hawaii.

Purchase Transaction Requirements

For all purchase transactions in Hawaii, the following documents are required:

Loan File Section	Document
Purchase Contract	Fully executed by buyer and seller.
Credit Report	Soft tri-merge credit report for each member of the borrowing entity that will be a guarantor.
Background Report	Required for each member of the borrowing entity.
Track Record	Required for each member of the borrowing entity.
ID Verification	Government-issued ID (e.g., driver's license, passport, Green Card).
Borrowing Entity	Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9.
Scope of Work	A detailed rehab budget that will be used to determine ARV.
Appraisal Report	You will be provided with a link to pay your appraisal invoice. Your appraisal will be uploaded to your loan file.
Bank Statements	Two (2) most recent statements for each guarantor. Account(s) can be personal (i.e., bank, brokerage, retirement) and do not need to be in the name of the borrowing entity.
Letter of Explanation	If requested by underwriting, e.g., for large deposits, late payments, or background items.

Refinance Transaction Requirements

For refinance transactions, we require similar documentation:

Loan File Section	Document
Purchase Contract	Fully executed by buyer and seller.
Credit Report	Soft tri-merge credit report for each member of the borrowing entity that will be a guarantor.
Background Report	Required for each member of the borrowing entity.
Track Record	Required for each member of the borrowing entity.
ID Verification	Government-issued ID (e.g., driver's license, passport, Green Card).
Borrowing Entity	Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9.
Scope of Work	A detailed rehab budget that will be used to determine ARV.
Appraisal Report	You will be provided with a link to pay your appraisal invoice. Your appraisal will be uploaded to your loan file.
Bank Statements	Two (2) most recent statements for each guarantor. Account(s) can be personal (i.e., bank, brokerage, retirement) and do not need to be in the name of the borrowing entity.
Letter of Explanation	If requested by underwriting, e.g., for large deposits, late payments, or background items.

Special Requirements for Loans Over $1M

Loans above $1M (up to the $2M maximum) come with additional requirements to ensure that the project is viable and that the borrower has the necessary experience and financial stability. These include:

Criteria	Explanation
Experience	Minimum experience of 3 similar or greater price point strongly preferred.
Market Liquidity	Minimum of 3 comps within a 2-mile radius sold on the MLS in the last 6 months.
Credit Score	Minimum 680, with a minimum of 5 trade lines with a 24-month history.
Rural Designation	Not eligible if the property is designated as rural by the CFPB and USDA or appraisal report.
Track Record	Required for each member of the borrowing entity.

Glossary of Key Terms

Here’s a quick reference for some key terms used in our loan agreements:

Term	Definition
ADU	Accessory Dwelling Unit. A secondary housing unit on the same parcel as the main home.
Arms-Length	A transaction between independent parties, ensuring fair market value.
Non-Arms-Length	A transaction where a personal or business connection affects fairness or pricing.
Initial Advance	The portion of the total loan amount that goes toward the property purchase.
Construction Holdback	The portion of the total loan that will cover rehab costs.
LTARV	Loan-to-After-Repair Value. Ratio of loan amount to property’s estimated value after rehab.
LTC	Loan-to-Cost. Ratio of loan amount to the combined purchase and rehab costs.
LTFC	Loan-to-Full-Cost. Ratio of the total loan amount to total cost, including both purchase price and rehab.

Get an Instant Fix and Flip Loan Quote in Hawaii

OfferMarket is your trusted partner for real estate investing in Hawaii. Our Fix and Flip loan program is designed to provide you with the financial flexibility and competitive rates you need to succeed in your real estate projects. Get started today by requesting an instant quote for your next fix-and-flip investment.