Whether it's beachside condos, single-family homes, or short-term rental properties, real estate investors love Hawaii: the strong tourism industry means that residential investment properties are always in hot demand. With 21% of Hawaii's overall GSP coming from tourism, there is also a strong need for restaurants, hotels, and small shops to cater to staycation locals and visitors alike.

Debt service coverage ratio (DSCR) loans are one of the best ways to invest in the competitive Hawaii real estate market, and Visio Lending is one of the state's top lenders for DSCR loans. We offer competitive interest rates, a streamlined process, and refinance options to help you meet your investment goals.



Benefits of Hawaii DSCR Loans

A Hawaii DSCR loan gives you access to numerous investment opportunities across the state, as you can finance multiple properties with the same loan. Unlike traditional loans, borrowers don't need personal income verification to qualify for a DSCR loan; no pay stubs or tax returns are necessary.

While DSCR loans are powerful investment opportunities in general, Hawaii DSCR loans take it to the next level. This is because Hawaii is an example of balancing tourism and homegrown industry to create a harmonious and eco-friendly economy.

Everything from environmentally conscious resorts, farm-to-table restaurants, and small businesses selling local goods will be popular with locals and visitors alike, meaning forward-thinking real estate investors can be sure they will generate sufficient cash flow to finance their DSCR loan.

Plus, unlike other tourist destinations, Hawaii remains popular year-round, so your rental income won't flag in the winter months as it would in temperate climates.

While tourism is the most well-known component of Hawaii's economy, it also is heavily invested in manufacturing, agriculture, construction, and transport, making long-term rental investment properties a great choice when seeking DSCR loans.


Requirements for a DSCR Loan - Hawaii

When borrowers apply for a DSCR loan, lenders calculate DSCR before approval, identifying the property's ability to generate sufficient cash flow and cover the loan payments. This is the overall rental income divided by the total debt service, which includes principal, interest, taxes, insurance, and association dues.

Most lenders want a DSCR ratio of 1.25 or higher; in other words, you should be making 1.25 times the amount of money you spend to finance the property. Visio Lending has a DSCR Minimum of 1.0.

The only financial metric necessary for DSCR loans is the borrower's credit score, which should be 680 or higher. After calculating DSCR, you'll need to appraise your investment properties and identify the fair market rental price in the area. With that, you'll provide a down payment of 20% or more and be ready to generate rental income through your investment properties.

These less strict borrower requirements for Hawaii DSCR loans allow real estate investors to purchase rental properties quickly. This gives them a big advantage in the hot Hawaii market, where the cash flow is hotter than the lava in Kīlauea.


Best Places for a DSCR Loan - Hawaii

While anywhere in Hawaii is a beautiful place to purchase property, investors have been hunting down DSCR loans in these areas to open the rental properties of their dreams.

These areas have a strong economy, great property values, and advantageous rent rates to assure plentiful cash flow and should be at the top of your list when considering where to pursue a Hawaii DSCR loan.

Hawaii cities to invest

📍 Honolulu

Honolulu is the state capital and the only place in America with a royal palace, boasting rents of $2,233 per month for residential investment properties, with commercial spaces generating rental income of approximately $30.50 per square foot.

Investment opportunities are plentiful here, as Honolulu is the state's financial center; in addition, numerous fintech startups are finding their way here, meaning that you could easily find happy renters for your rental properties by a Hawaii DSCR loan.

📍 Kihei

With a sunny atmosphere, charming beaches, and plenty of affordable tourist options, Kihei is one of the most popular destinations in Maui for vacationers and those seeking DSCR loans.

Its rental income is almost half that of Honolulu, averaging around $1,503, but the primary draw here is commercial space, which is highly competitive. Retail income is a stunning $65.41 per square foot, while commercial office space is a more modest $22.98 per square foot.

📍 Wailuku

Wailuku is fascinating in that it is a harmonious blend of unique architectural styles, from Art Deco to Colonial, all blended in the relaxing Maui style.

Like the eclectic mix of architecture, real estate investors can expect to flourish in many different niches, including residential and commercial property. Across all residential property types, rent is about $1,683 per month, while cash flow from retail spaces sits at $28.26 per square foot.

📍 Hilo

Lush and green, Hilo boasts tremendous waterfalls and verdant plains, which makes it a stellar opportunity to invest in vacation rentals. Real estate investors can see a rental income of $1,650 for residential real estate or $24.23 per square foot for offices.

Surprisingly, retail commercial income is much lower at $15.35 per square foot, suggesting an excellent opportunity for real estate investors who want to take advantage of low rates with a Hawaii DSCR loan.


Closed DSCR Loans Hawaii

Check out some of Visio Lending's recently closed DSCR loans in Hawaii.


Honolulu Condo


Honolulu, HI

  • $504,000 Loan Amount
  • Purchase
  • STR 
  • DSCR: 1.39
HI condo


Lahaina, HI

  • $1,120,000 Loan Amount
  • Cash-Out Refinance
  • STR
  • DSCR: 1.21
Kapaa HI House


Kapaa, HI

  • $520,000 Loan Amount
  • Cash-Out Refinance
  • LTR
  • DSCR: 1.03
DSCR Landing Page bottom grpahic (32)-1

Our DSCR Loans in Hawaii have:

  • · Full 30 year terms, no balloons for rental residential properties

  • · The ability to finance in an LLC

  • · No tax documents or personal income verification

  • · Real estate investor-friendly loan programs

  • · Interest only loan options


Contact Us to Start Your Loan