Leasehold Property Loans on Hawaiʻi Island
Leasehold inventory on Hawaiʻi Island has its own patterns and lessors. We know which projects are converting to fee simple and how Hawaiʻi Island buyers price remaining lease term.
- No credit minimum
- Same-day quote
- Close in days
- All six islands
The Old King Kalākaua Building · 1407 Kalākaua Avenue, Honolulu · Open 7 days a week by appointment
- Leverage
- Typically 50% of leasehold value
- Lease term
- Must comfortably exceed loan term
- Rate
- About 12% a year (1% a month), interest only
- Term
- 6 to 18 months
- Types
- Condos, homes, small multi-units
- Fee conversion
- We can fund the fee purchase
Using a leasehold property loan on Hawaiʻi Island
Leasehold is a Hawaiʻi fact of life. Thousands of condos and homes sit on land owned by trusts, estates and corporations, and most banks either refuse them or price them punitively. We have lent on leasehold for over twenty years.
Hawaiʻi Island is larger than all the other islands combined and its real estate reflects that range. Kona and Waikoloa carry resort and second-home values, Hilo offers older homes with deep renovation upside, and Puna has the lowest-priced buildable lots in the state.
Where this loan works best on Hawaiʻi Island
- Kailua-Kona. Second-home and resort demand, ocean-view renovations.
- Waikoloa and Waimea. Golf-course subdivisions and Waimea ranch homes with strong resale.
- Hilo. Historic homes near the university and hospital, rental-driven flips.
- Puna (Keaʻau, Pāhoa, Hawaiian Paradise Park). Lowest-cost lots in the state, ground-up construction loans.
- Captain Cook and Kealakekua. Coffee-belt properties with ag zoning and ohana potential.
Hawaiʻi Island specifics we underwrite
Leasehold is rare in Hawaiʻi Island residential inventory outside a few resort condominiums in Kona and Waikoloa. Most single family purchases are fee simple.
Leasehold is rare in Hawaiʻi Island residential inventory outside a few resort condominiums in Kona and Waikoloa. Most single family purchases are fee simple.
How we fund in Hawaiʻi Island
Tell us about the property
Island, property type, purchase price, estimated after-repair value and your exit plan. Takes two minutes and needs no personal financial documents.
Same-day quote
We come back with loan amount, rate and structure. No committee, no runaround.
Property evaluation
We inspect the asset and verify title. Local knowledge means this step moves fast.
Fund and close
Sign documents, record the deed of trust, receive funds. Pay interest only until you sell or refinance.
Hawaiʻi Island leasehold property loans questions
Straight answers. If yours is not here, call 808-523-2000 and talk to a decision maker.
What lease term do you require?
The remaining term must comfortably exceed the loan term. We prefer 15 or more years remaining but evaluate shorter leases with a strong exit.
Can you finance a fee conversion?
Yes. We fund the purchase of the fee interest, and the resulting fee simple property is easier to sell or refinance.
Do you lend in lava zones on the Big Island?
We lend in zones 3 and above without restriction. For zones 1 and 2 we look closely at your exit, because end buyers often cannot get conventional financing there.
Can I get a construction loan for a lot in Puna?
Yes. Ground-up construction loans in Hawaiian Paradise Park, Keaʻau and surrounding subdivisions are common for us. We release funds in draws tied to inspections.
Same-day quote for Hawaiʻi Island
Two minutes. No credit pull, no documents. Get an instant estimate and a same-day quote from a lender that actually closes in Hawaiʻi.