Best DSCR Lenders in Hawaii (Rental Property Loans) [2025 Guide]

Hawaii’s alluring beaches and year‑round tourism make it a coveted market for short‑term and long‑term rental investors. Yet state and county regulations are tightening: a 2024 Hawaii law allows counties to phase out vacation rentals, granting them authority to prohibit transient accommodations. In Maui, for example, a proposed bill would phase out 2,200 condo units on the Minatoya list (legally approved pre‑1992 STR condos) by July 1 2025. Investors must understand these changing rules when pursuing DSCR loans, which allow qualification based on property cash flow instead of personal income.

Demand for rental properties remains strong. Hawaii’s tourism industry welcomed around 9 million visitors in 2024; O‘ahu and Maui continue to see high occupancy rates, while the Big Island and Kaua‘i attract eco‑tourism. Median rents in Honolulu exceed $2,300/month and condo prices remain high. DSCR loans can help investors purchase or refinance rental properties by focusing on the property’s net operating income rather than personal W‑2s.

How We Ranked Hawaii DSCR Lenders

Lenders were ranked based on transparency of DSCR guidelines, minimum DSCR ratio allowed, maximum LTV, minimum FICO, loan amounts, property types accepted (condos, condotels, single‑family homes), closing speed, borrower reviews, state availability and short‑term‑rental friendliness.

Top DSCR Lenders in Hawaii (Select Home Loans #1)

1. Select Home Loans – Best Overall

Website: SelectHomeLoans.com

Phone: 888-550-3296

• About: DSCR lender offering flexible underwriting across island counties. Rates 6.5–8 %, loans $75k–$2M, down payments 20 %, closing in 15–25 days. Allows DSCR as low as 0.75 (0.5 with strong equity).
  
• Best for: Investors seeking fast funding for condos, condotels or single‑family homes in Hawaii; both short‑term and long‑term rentals.
  
• Coverage: Active on O‘ahu, Maui, Hawai‘i Island and Kaua‘i.
  
• Min DSCR: 0.75 (0.5 with equity).
  
• Max LTV: 80 %.
  
• Min FICO: 660.
  
• Loan amounts: $75k–$2M.
  
• Properties: Single‑family, 2–4 units, condos/condotels; leasehold and fee‑simple acceptable.
  
• Prepayment: 3–5 years.
  
• Close time: 15–25 days.
  
• Notable features: No origination fee; DSCR below 1.0 allowed; pre‑approval within 24 hours; local team aware of island permits.

2. Longleaf Lending

• About: DSCR lender with dedicated Hawaii page. Terms current Aug 25 2025 list loan amounts $75k–$2M, LTV up to 80 %, rates from 6.6 %, 30‑year fixed, 1–3 points, closing in two weeks and FICO 660.
  
• Best for: Investors seeking quick closings and no‑income verification.
  
• Min DSCR: 1.0–1.2 (lower possible).
  
• Max LTV: 80 %.
  
• Min FICO: 660.
  
• Properties: Single‑family, duplexes, condos; supports STRs.
  
• Prepayment: 3–5 years.
  
• Sources: Longleaf Lending Hawaii DSCR page.
  

3. Myers Capital Hawaii

• About: Honolulu‑based mortgage broker offering DSCR loans. Their program provides 15-, 30- and 40‑year fixed options or 30/40‑year interest‑only terms; down payments begin at 20 %, and DSCR requirement is generally 1.15–1.25.
  
• Best for: Local investors seeking a Hawaii specialist.
  
• Coverage: O‘ahu, Maui, Hawai‘i Island and Kaua‘i.
  
• Notable features: Offers condotel financing; 30‑year fixed rates around 5.875 % (example from website).
  
• Sources: Myers Capital Hawaii DSCR program description.
  

4. NewFi Lending

• About: National DSCR lender; offers 15‑, 30‑ and 40‑year fixed or interest‑only loans in Hawaii with LTV up to 80 %.
  
• Best for: Investors seeking variety of loan terms and interest‑only options.
  
• Min DSCR: Typically 1.0–1.25.
  
• Max LTV: 80 %.
  
• Min FICO: 660.
  
• Notable features: Accepts condos and condotels; foreign national loans available.
  

5. Visio Lending

• About: National DSCR lender with strong vacation‑rental expertise; requires FICO ≥ 680 and DSCR ≥ 1.0.
  
• Coverage: Lends in Hawaii; borrowers must use an LLC.
  
• Notable features: AirDNA underwriting; interest‑only options.
  

6. Angel Oak Capital

• About: Non‑QM lender; allows DSCR below 1.0; high leverage up to 85 % LTV.
  
• Coverage: Hawaii.
  
• Notable features: Interest‑only and 40‑year terms; no‑ratio DSCR; not for first‑time investors.
  

7. Easy Street Capital

• About: DSCR lender with high LTV (85 %) and flexible guidelines; offers loans up to $3.5M. Accepts vacation rentals and condotels.
  
• Coverage: Lends in Hawaii.
  
• Notable features: Blanket loans up to $5M; interest rates start at 5.5 %.
  

8. New Silver

• About: Fintech DSCR lender; no minimum DSCR; allows short‑term‑rental projections using AirDNA.
  
• Coverage: Lends in Hawaii.
  
• Min FICO: 660.
  
• Max LTV: 75 %.
  
• Notable features: Fast closings; interest rates starting around 6 %.
  

Comparison Table

Lender	Min DSCR	Max LTV	Min FICO	Typical rate range*	Program highlights	Link
Select Home Loans	0.75 (0.5 w/ equity)	80 %	660	6.5–8 %	Fast closings; condotels & STRs allowed	Select
Longleaf Lending	1.0–1.2	80 %	660	from 6.6 %	2‑week closings; no income docs	Longleaf
Myers Capital HI	~1.15–1.25	80 %	660	5.8–8 %	Hawaii‑based broker; condotel financing	Myers
NewFi Lending	1.0–1.25	80 %	660	6–8 %	Fixed & interest‑only options	NewFi
Visio Lending	1.0	80 % (70 % cash‑out)	680	6.5–9 %	AirDNA underwriting; LLC required	Visio
Angel Oak	<1.0 allowed	85 %	680	6.5–9 %	No‑ratio DSCR; 40‑year terms	Angel Oak
Easy Street	~1.0	85 %	640	5.5–8 %	Condotels & STRs; loans up to $3.5M	Easy Street
New Silver	None	75 %	660	6–8 %	AirDNA projections; fintech platform	New Silver

*Rates vary by property type and borrower profile; ranges are illustrative.

Hawaii DSCR Guide

DSCR Formula

DSCR = NOI ÷ annual debt service. NOI equals rental income minus expenses (HOA fees, utilities, property taxes, insurance). Lenders typically require DSCR ≥ 1.0–1.25. Select Home Loans will consider ratios as low as 0.75 for strong deals.

Example Calculation Using Hawaii Rents

• Property: Condotel unit in Waikiki producing average nightly rent of $220. With 80 % occupancy (24 nights/month), monthly gross rent ≈ $5,280 or $63,360 annually.
  
• Expenses: HOA fees $1,100/month ($13,200/year), maintenance $2,400/year, insurance & taxes $3,400/year → total $19,000.
  
• NOI: $63,360 – $19,000 = $44,360.
  
• Loan: DSCR mortgage $500,000 at 7.0 % with annual debt service $40,200.
  
• DSCR: $44,360 ÷ $40,200 ≈ 1.10. This meets most DSCR lenders’ requirements.
  

Short‑Term Rental & County Regulations

Hawaii counties now have broad authority to regulate or phase out short‑term rentals. The 2024 state law lets counties ban STRs and requires them to adopt legislation controlling transient accommodations. On Maui, proposed Bill 9 would phase out roughly 2,200 condominium units currently approved for STR use by mid‑2025. O‘ahu’s Ordinance 22‑7 mandates that a dwelling cannot be rented for less than 30 days unless registered as a short‑term rental; starting September 2025, the minimum will increase to 90 days in most residential zones. Investors must check county planning offices and obtain permits; failure to comply can lead to heavy fines. DSCR lenders may ask for proof of STR registration and may use a conservative DSCR based on long‑term rental rates.

Local Investor Considerations

• O‘ahu (Honolulu): Hawaii’s economic hub. Median rent for a two‑bedroom apartment exceeds $2,300/month and vacancy rates remain low. However, stricter STR rules require at least 90‑day leases in most neighborhoods. Condos and condotels near Waikiki and Ala Moana remain popular for DSCR financing; ensure the building’s condo association allows transient rentals.
  
• Maui: The proposed STR phase‑out could significantly reduce vacation‑rental inventory, potentially boosting rates for remaining legal rentals. Investors should confirm whether units are on the Minatoya list and follow county licensing.
  
• Hawai‘i Island (Big Island): Areas like Kona and Hilo have strong tourism and lower entry prices than O‘ahu; DSCR investors can find higher cap rates but must account for volcano insurance and rural infrastructure.
  
• Kaua‘i: Known for natural beauty; limited hotel inventory keeps vacation rental demand high. County rules require permits; DSCR lenders may require 12 months of reserves due to hurricane risk.
  

Qualification Checklist

• Credit score: 660+ (680 for some lenders).
  
• Reserves: 6–12 months of PITI; some lenders demand additional reserves for island risks.
  
• Appraisal: Full appraisal with 1007 rent schedule using market rent or STR projections (when permitted).
  
• Entity: Many lenders require property to be held in an LLC; condotel units may need to be titled in an LLC or trust.
  
• STR compliance: Obtain county permits and ensure condo association allows transient rentals. Provide proof of registration.
  
• Leasehold vs. fee simple: Some condos in Hawaii are leasehold; lenders may limit loan term to the remaining lease term or require higher down payment.
  

Rates & Terms Snapshot

DSCR rates in Hawaii range from 6.5 % to 8.5 %, generally higher than mainland rates due to island risk premiums. Loan amounts typically max at $2 million for single properties. Down payments start at 20 % (25 % for condotels). Points of 1–3 are common and prepayment penalties last 3–5 years. Borrowers with DSCR >1.25 and FICO >720 may secure lower rates.

Hawaii DSCR FAQs

1. Can I get a DSCR loan for a condotel? Yes. Lenders like Select Home Loans, NewFi and Myers Capital finance condotels, but require proper HOA approval and often lower LTV.
   
2. What DSCR do lenders require? Most require 1.0–1.25; Select may accept 0.75.
   
3. Do lenders allow Airbnb rentals? Many do if the county permits STRs and the building allows transient occupancy. Provide proof of permit and occupancy tax registration.
   
4. What down payment is required? Expect 20 % minimum; condotels may require 25 %. Angel Oak offers up to 85 % LTV for fee‑simple properties.
   
5. How quickly can DSCR loans close in Hawaii? Select can close in 15–25 days; Longleaf closes in 2 weeks; other lenders take up to 5 weeks.
   
6. Are there additional taxes? Yes. Hawaii imposes Transient Accommodation Tax (TAT) and General Excise Tax (GET) on rental income; ensure you register and file returns.
   

Call to Action

Island investing demands local expertise. Select Home Loans offers the flexibility, speed and knowledge you need to finance condos, single‑family homes or vacation rentals across Hawaii. Get your free quote today.