Multifamily Loans in Honolulu, Hawaii

Known for its stunning beaches and vibrant culture, Honolulu, Hawaii, is also a hotspot for multifamily housing. This tropical paradise is home to a diverse range of multifamily properties, from duplexes to large apartment complexes. As a leading provider of multifamily financing services, we offer tailored solutions to meet the unique needs of property owners in Honolulu. Whether you're looking to purchase, refinance, or renovate a multifamily property, our team of experts is here to guide you through the process.

Our commitment to serving the Honolulu market is unwavering. We understand the local real estate landscape and the specific challenges and opportunities it presents. With our deep industry knowledge and local market expertise, we can help you navigate the multifamily financing landscape in Honolulu, ensuring you secure the best loan terms for your investment.

Economy in Review

As the capital city of Hawaii, Honolulu boasts a robust and diverse economy. According to the Bureau of Labor Statistics, the city's economy is largely driven by tourism, government services, and defense. However, it's also home to a burgeoning tech industry and a thriving arts scene. This economic diversity provides a stable foundation for multifamily property investments.

Demographic shifts in Honolulu, as reported by the U.S. Census Bureau, show a steady influx of young professionals and families, attracted by the city's quality of life and job opportunities. This trend is bolstered by the presence of higher education institutions such as the University of Hawaii at Manoa and Chaminade University. Additionally, the city's healthcare sector, anchored by facilities like The Queen's Medical Center and Kapiolani Medical Center, contributes significantly to the local economy and population stability. These factors combine to create a strong demand for multifamily housing in Honolulu.

Today's Interest Rates in Honolulu

Find today's multifamily loan rates for Honolulu in the table below. These are updated every day to ensure you have the best picture of the financing terms you could get.

Please note that these are benchmark index rates only — every loan product will have a rate that varies depending on the property, the location, the borrower's financial strength and experience, and several other factors.

Our Experts

When it comes to getting a multifamily loan, the sheer number of choices can be daunting. What this really means, however, is that there are incredible opportunities for apartment complex investors regardless of location, property size, or experience level.

Multifamily Loans connects borrowers with lenders across the country who are prepared to offer you highly competitive terms. Whether you're buying, developing, or renovating an apartment building, shopping your loan to multiple lenders — not just the bank or credit union down the street — gives you a huge advantage.

Our experienced team of capital markets advisors will source the very best terms from our unparalleled network of lenders to ensure your property gets the best financing terms available. We offer this service completely free of charge.

Looking for more information about Honolulu? Read on below. Otherwise, click the button below, and we'll get right back to you with your free multifamily loan quote.

Multifamily Loans in Honolulu by Purpose

There are many reasons to get a new multifamily loan for a property. I won't cover each of these, but let's talk about the "big three" reasons to get financing: construction, acquisition, and refinancing.

Acquisition Financing for Multifamily Properties in Honolulu

Buying an apartment building is one of the most common reasons investors consider a multifamily loan. It's also one place many go wrong: Loan terms can directly impact the profitability of an acquisition in a serious way (both positively and negatively).

There are many types of loans that can be used for buying multifamily real estate — and it can be difficult to navigate all differences between Fannie Mae, Freddie Mac, bank, credit union, HUD, and the various other types of loans, but it's a critically important part of the purchasing process. Reach out to our team using the form below to see what's possible.

Construction Loans for Multifamily Properties in Honolulu

America needs housing, both on a broad level and specifically in Honolulu. Development costs these days are often eye-wateringly high, though, so getting strong financing in place is absolutely essential to ensure your project turns a profit.

Refinance a Multifamily Property in Honolulu

Most multifamily loans are only partially amortizing. This means once the loan term is up, the borrower must either pay a rather large "balloon payment" or refinance the loan.

Refinancing can be difficult — especially if you already have a great loan in place with fantastic terms. That's why it's essential to look at all your options across the board. And remember: Even if your interest rate goes up (and sometimes this is unavoidable), there's often great opportunities to boost your investment's returns with a strong refinancing loan. We'll source the best terms available for your multifamily refinance — just drop your details in the form at the bottom, and we'll get to work.

Current Multifamily Loans in Honolulu

There are a wide range of multifamily financing options in Honolulu. Keep reading to learn which loan types could be the most suitable for your property.

1. Bank and Credit Union Loans

Loans from banks and credit unions are a diverse bunch. Every institution typically has different preferences when it comes to location, property size, and risk. While it's difficult to give detailed general information about what to expect from a local, regional, or national bank or credit union, loans often require some kind of recourse and (usually) a larger down payment compared to agency loans.

2. Fannie Mae Multifamily Loans

Fannie Mae Multifamily loans offers loans in Honolulu in various sizes. These financing options offer competitive floating and fixed rates for a variety of uses. See below for the latest rates and terms. Note that the Fannie Small loan is particularly competitive for amounts under $9 million.

3. Freddie Mac Multifamily Loans

Like Fannie Mae, Freddie Mac also offers a wide range of multifamily loans. The GSE's most popular loan for smaller investors, the Freddie Mac Small Balance Loan, is a great option for those seeking non-recourse financing for amounts of under $7.5 million, and there are many other Freddie loans that cover everything from student housing to mobile home parks.

4. HUD Multifamily Loans

While you might associate HUD with affordable and Section 8 housing projects, the U.S. Department of Housing and Urban Development backs several loans in Honolulu with incredibly strong terms — and they work wonders for market-rate properties.

Take the HUD 221(d)(4) loan, for example. This construction financing is hard to beat, thanks to fully amortizing terms of 40+ years, a low, fixed rate, and high leverage allowances.

HUD's 223(f) loan is equally impressive: a great acquisition or refinancing option that offers a fixed rate, full amortization, and leverage of up to 83.3% for market-rate (and higher for affordable) properties.

5. Bridge Loans

If you're after short-term financing for a multifamily property, a bridge loan could be a great option. These loans do come at a higher cost compared to many others, but the flexibility can make it more than worth it — particularly if your property is still stabilizing.

6. CMBS Loans

Commercial mortgage-backed security loans are asset focused. That means that getting approved for one comes down to the strength of the property, not the borrower. Multifamily CMBS loans often offer leverage up to 75% for eligible properties, and the loans also are non-recourse and (often) are tied to a fixed interest rate.

If you are interested in applying for a multifamily loan in Honolulu? Put your details in the form below, and we’ll match you with the best lender for your investment strategy.

Multifamily Property Insurance in Honolulu

Hold up: This part isn't about loans, but it's just as important to your investment's success. Let's talk about insurance. Rather quickly, too — I know it's probably not your favorite topic.

Multifamily insurance costs have shot through the roof during the past couple years, though I don't need to tell you. Some places have seen increases of 200% or more, and even less-affected states and locations have seen costs rise by at least 30% to 50% in a single year.

Janover Insurance Group is dedicated to finding the best insurance solutions for your commercial real estate assets in Honolulu. Click to get a free insurance quote for your multifamily or other commercial property — there's absolutely no obligation. (And if you're in a homeowners association that could use a better HOA insurance policy, they offer great expertise here as well.)