Island Funding Group

About Island Funding Group

Island Funding Group is a Hilo, HI based private lender. They offer loans in Hawaii. They provide fix and flip loans and rental property loans. Their lending parameters are versatile, including loan amounts ranging from $100,000 to $1,000,000 with a maximum LTV of 90%, rates ranging between 10% and 14%, and terms up to 12 months. Their lending guidelines do not require a minimum FICO rating. They will consider various loan scenarios but usually focus on single family homes and multi-family.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: HI

Licenses: NMLS #249457

Lending Guidelines for Island Funding Group

Below are the general loan guidelines published on the Island Funding Group website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Island Funding Group.

Loan Example 1

Arnold closes on a $280,000 renovation project in Honolulu, HI, using a fix and flip loan from Island Funding Group. The borrower will need to bring 25% of the purchase price in cash to closing based on a 75% loan to value set by the lender. This makes the loan principle from Island Funding Group $210,000. The deal also includes the following features: 1) a 12 month term, 2) a 13% interest-only note, and 3) a two point origination fee.

In accordance with the parameters of the deal, Arnold will need to pay a $4,200 origination fee in addition to 25% of the purchase price, or $70,000, since there is a 75% LTV. Once the deal is executed and Arnold takes over the property, he will need to begin making monthly payments of $2,275 to the lender ($210,000 principle x 13% / 12 months). If Arnold sells the project for $336,000 after 12 months, he would then earn a total profit of $24,500 after subtracting the principle amount of $210,000, the funds paid at closing of $70,000, the origination fee of $4,200, and the aggregate interest payments of $27,300. This gross profit doesn't account for building costs.

Loan Example 2

Mattie locates a townhouse in Honolulu, HI to remodel and resell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from Island Funding Group with the following parameters:

$170,000 purchase price
50% loan-to-value (LTV)
6 month term
8% interest rate
4% origination fee

Based on a $246,500 sales price after the 6 month term, the numbers for this deal would look like the following:

$246,500 sales price
- $85,000 principle (50% LTV)
- $85,000 cash paid at closing (50% on 50% LTV)
- $3,400 origination points (4% of the $85,000 principle amount)
- $3,400 interest payments (6 months x 8% interest)
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= $69,700 total profit (does not include taxes or renovation costs)