Who this is for
Who this fits
Lot owners
Already own land? Your equity in the lot can count toward the down payment.
Buyers of fixer-uppers
Many Hawaii homes are older. Renovation loans finance the purchase plus repairs.
ʻOhana and ADU builders
Adding a unit for family or rental income.
Rebuilders
Replacing an older home on the same lot.
Program highlights
Options
One-time-close construction
Conventional, FHA and VA versions exist. Rate is set at closing, then the loan converts to permanent when the build finishes.
FHA 203(k)
Buy or refinance plus repairs, with FHA's lower down payment.
Fannie Mae HomeStyle
Conventional renovation loan for primary, second home or investment.
Bridge to permanent
For builds that don't fit one-time close, a short construction loan plus a separate mortgage.
Qualification guidelines
What lenders look at
Typical guidelines across my lender network. Every file is different, and I will tell you exactly where you stand after a quick review.
| Factor | Typical requirement | Required? |
|---|---|---|
| Licensed contractor | Approved by the lender | ✓ YES |
| Plans & budget | Signed contract, plans, cost breakdown | ✓ YES |
| Appraisal | "As completed" value | ✓ YES |
| Credit score | Usually 620–680+ | ✓ YES |
| Down payment | Varies by program | ✓ YES |
| Owner-builder | Rarely allowed | ✗ USUALLY NOT |
In Hawaii
Building in Hawaii
- Permits take time. Plan for county permitting timelines when choosing the build period and rate lock.
- Costs run high. Shipping and labor make Hawaii builds expensive; lenders want a detailed budget and contingency.
- Leasehold and DHHL lots need specific lenders. Hawaiian Home Lands →
How it works
From first call to closing
- PlanBuilder, plans and budget.
- ApproveI shop lenders that do one-time close in Hawaii.
- BuildDraws are released as work is inspected.
- ConvertLoan converts to your permanent mortgage.
Common questions
Construction & Renovation FAQ
What does one-time close mean?
One loan covers construction and the permanent mortgage, with one closing and one set of closing costs.
Can I be my own builder?
Usually not. Most lenders require a licensed, approved general contractor.
Can I finance an ADU?
Yes, ADU and ʻohana builds can be financed through construction or renovation loans, depending on the property.
What's the difference between 203(k) and HomeStyle?
203(k) is FHA (primary homes, lower down payment). HomeStyle is conventional and can be used for second homes and investment properties.
Sources: HUD Handbook 4000.1 (203(k)); Fannie Mae Selling Guide (B5-3, HomeStyle Renovation and single-closing construction).
