Island Home Loans

About Island Home Loans

Island Home Loans is a Hilo, HI based hard money lender who provides loans in Hawaii. Their focus is mainly on buy and hold loans. They will consider various loan scenarios but usually focus on single family units.

Loan Types Offered: Investment Property Loans

Property Types Covered: Single Family

Areas Served: HI

Licenses: NMLS# 249457

Lending Guidelines for Island Home Loans

Below are the general loan guidelines published on the Island Home Loans 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 Home Loans.

Loan Example 1

Neil takes a loan from Island Home Loans in order to rehab a condo to flip in Honolulu, HI. The sales price of the house is $390,000. The loan-to-value (LTV) on the deal is 85%. This means that Neil will need to bring 15% of the sales price to the closing and the principle will be $331,500 on the note. The loan also has the following features: 1) a 18 month length, 2) a 10% interest only note, and 3) a three point origination fee.

Accordingly, Neil will be required to make a $58,500 down payment plus pay a $9,945 origination fee. he will then pay $2,763 monthly to Island Home Loans. If Neil meets his goal of a $565,500 sales price when the loan expires, he would make a gross profit of $115,830 after re-paying the principle and deducting the money he contributed at closing, the origination points, and the monthly interest payments.

Loan Example 2

Island Home Loans issues a loan to Viola for a renovation project in Honolulu, HI. The loan includes the following:

a) A $260,000 sales price, b) a 50% loan-to-value (LTV), c) a 12 month term, d) a 13% interest rate, and e) a 1% origination fee.

Based on a $325,000 sales price at the end of the 12 month term, the outcome for the project would look like the following:

$325,000 sales price
- $130,000 principle (50% LTV)
- $130,000 down payment (50% on 50% LTV)
- $1,300 origination points (1% of the $130,000 principle amount)
- $16,900 total interest paid (12 months x 13% interest)
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= $46,800 gross profit (does not include taxes or renovation costs)