HELOC Loans in Hawaii

Home Equity Line of Credit (HELOC)

Hawaii homeowners can use a HELOC (home equity line of credit) to unlock the value of their property and fund renovations, tuition, or unexpected costs. With high property values across the islands, many residents have built significant home equity that can be accessed through revolving credit. A HELOC gives you the flexibility to draw funds as needed, while a home equity loan provides a one-time lump sum. Most Hawaii lenders require 15%–20% equity and a credit score of at least 620. Lenders on Oahu, Maui, the Big Island, and Kauai offer options with variable or fixed interest rates. Local banks and credit unions often provide competitive terms tailored to island homeowners.

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How to qualify

To obtain a quote, we will need the following information:

Property Value and

 Purchase Price


Down Payment

Amount


Credit Score

 Asset Types

  • Single Family Homes
  • Townhomes
  • Condos
  • 2 - 4 Units (Duplex, Triplex, Quadplex)
  • Multi-Family: 5 - 8 Units
  • Mixed-Use: 2 - 8 Units
  • Multi-Family: 9+ Unit


Loan Terms

  • Loan Sizes: $100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
  • Purchase LTV: Up to 85%
  • Rate & Term Refinance LTV: Up to 80% 
  • Cash Out Refinance LTV: Up to 80%
  • Amortization: 30 Year % 40 Year Amortization Options Available
  • Term Lengths: 5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
  • Floor Rate: 5.50% (subject to change daily due to market volatility)
  • Full Recourse with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
  • DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
  • Vesting: Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
  • Average Time to Close: 14 to 35 days

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Frequently Asked Questions

What is a HELOC and how does it differ from a home equity loan?

A HELOC in Hawaii provides a revolving line of credit backed by your home’s equity. You can draw funds as needed during the draw period and repay them over time. A home equity loan, in contrast, delivers a single lump sum with a fixed interest rate and payment schedule. HELOCs are ideal for variable or recurring expenses, while home equity loans suit one-time, large costs. Hawaii residents often weigh both options based on project timelines, borrowing needs, and income predictability.

How do HELOC rates work and what affects the interest rate?

HELOC interest rates in Hawaii are typically variable and influenced by the prime rate, your credit score, equity, and location. Island-based lenders may offer unique rate structures or incentives to local borrowers. Rates can differ between urban and rural areas or depending on the property type. Some Hawaii banks and credit unions allow fixed-rate conversions or offer low intro APRs. Comparing multiple lenders ensures you find the best rate and terms.

Can I qualify for a home equity loan in Hawaii with low credit?

It’s possible to qualify for a home equity loan in Hawaii with low credit, particularly if you have strong home equity and verifiable income. Most lenders prefer a credit score of 620 or higher, but some local institutions may work with lower scores on a case-by-case basis.If you live in a high-value area like Honolulu or Lahaina, your equity may help offset credit risks. Expect to provide detailed documentation and accept higher interest rates if your credit is under 620.

How much equity do I need in my home to get a HELOC?

In Hawaii, you typically need at least 15%–20% equity in your home to qualify for a HELOC. That means your existing mortgage should be no more than 80%–85% of your home’s appraised value.Appreciation in popular areas such as Oahu or Maui can increase your borrowing power. Lenders also assess your credit profile, income, and debt-to-income ratio. Use an equity calculator to estimate your available line before applying.

Are home equity loans in Hawaii better for large expenses?

Yes, home equity loans in Hawaii are great for large, one-time expenses like home upgrades, medical bills, or debt consolidation. These loans offer fixed rates and structured monthly payments, which many homeowners prefer for financial planning. If your needs are ongoing or spread out over time, a HELOC may provide more flexibility. For borrowers who value payment stability and upfront access to funds, home equity loans remain a strong choice.

What are typical equity rates and loan terms in Hawaii?

In Hawaii, HELOC rates typically range from 7% to 10% APR depending on the lender, your credit score, and the amount of equity in your home. Most HELOCs offer a 10-year draw period and a 10- to 20-year repayment window.Home equity loans in Hawaii generally provide fixed interest rates with terms between 5 and 30 years. Local banks and credit unions may offer lower fees or island-specific programs. Always compare multiple offers to find the best fit.

Looking beyond Hawaii? Compare HELOC options in California , Oregon , Washington , and Alaska...