New Hawaii Vacation Rental Loan Program with 20% Down Payment

As a sign of the times of an active real estate market in Hawaii, we are seeing lenders be more aggressive and with this, there is a new Hawaii vacation rental loan program offering very competitive rates with as low as 5% down for owner occupants and 20% non-owner occupied buyers. Last year, I blogged about this more extensively, and I do encourage to visit it as this is really a complimentary piece (Read it here: Purchase a Hawaii Condo-Tel Property with as Little as 20% Down Payment), but I want to make clear that this is a new and even more compelling loan program.

I am currently representing a client right now who is utilizing this new program and is quite stoked on the terms. Because I am not licensed lender, I cannot quote specific rates but I can directly connect you with the lender who is offering this awesome program. Additionally, I am a real estate broker here in Maui and I am most qualified to represent your interests here. However, if you are interested in other islands, please do let me know as I have a great network of team members throughout the state who specialize in these types of properties.

The view from Hale Ono Loa where my client is purchasing residence #203, a turn-key beautifully remodeled 1bd./1ba. ocean view residence where they are utilizing this same loan program and are closing in the $450K range on this property next week.

Loan Highlights

Primary residence:

  • Minimum down payment 5%
  • 30 yr. fixed at very compelling rates

Second Home:

  • Minimum down payment 10%
  • 30 yr. fixed at very compelling rates

This loan program allows you to finance the property as a second home (some restrictions apply) and provided that you occupy the property for at least 14 days per year, you will be permitted to rent the property immediately after closing. It is also acceptable to honor future bookings on the property through the terms of your purchase contract. Honoring these future bookings is most commonly applied for those properties that are managed directly by an owner or an independent management company rather than a front desk entity. On this note, learn how to best optimize your Hawaii vacation rental property here.


  • 25% down payment
  • Fixed rate that is roughly a half point higher than the above illustrations.

The Fine Print

This loan program is not eligible for condos that have timeshare units on the property. This is not especially common but there are a number of vacation rental condo units that the vast majority of which are fee simple and wholly owned but do have some timeshare ownership. Additionally, those condos with a registration desk need to be approved with on a case-by-case basis.

Jeremy Stice R(B) at Your Service

As the director of Hawaii Life’s West Maui Vacation Rental portfolio and one of Hawaii Life’s top-selling Brokers, my team and I are here at your service. I was born and raised here in Maui, am a third generation Realtor, and my wife and I have called West Maui home for the last 10 years and enjoy sharing our passion for it with all who are interested. I make a commitment to pick up my cell phone as best as I can, return voicemails, text messages, and email in a timely fashion. I also work 7 days a week so feel free to call me anytime you need me. However, if I am busy at the time, I will get back to you shortly. I am here at your service, I look forward to sharing my passion and expertise with you. Want to follow my blog via email updates? Please enter it below. This will not be used for any other reason than automatic blog updates that I post. Subscribe to the Jeremy Stice Blog Roll Here 

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Jeremy Stice

May 22, 2019

Update on this post- my clients who I mentioned were in the process of purchasing a vacation rental here on Maui just closed today utilizing this loan at 30 year fixed loan at 4% interest with no points! This is an incredible program for all buyers seeking financing to take advantage of.

Daniel Mills

April 29, 2020

Is this a conventional loan? I have filled all my conventional loan slots (10). I am looking for a loan program to buy a vacation rental in Maui that would work for someone like me.

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