5 Best Land and Lot Loans in Hawaii


Land loans let you secure your ideal property in the competitive Hawaiian housing market.

Key Terms

  • Land loans are a great way to secure a location in popular or expensive areas.
  • Land loans don’t involve making monthly insurance payments.
  • You can build on your own time with a Hawaii “lot” loan.

You don’t need to tell people what’s amazing about living in Hawaii. This island state is self-evidently one of the loveliest places on earth. Many have established unique lifestyles in Hawaii, taking advantage of the locale’s lush beauty and rich culture. 

Hawaii is a bit bigger than one might think, and includes 6,422 square miles according to the U.S. Census. Much of that land is highly coveted space, however, especially along the coastline.

For that reason and more, many Hawaiians are taking a new approach to finding a home by taking out land loans. A lot loan can help you find a plot of land that you can then build a home on when you’re ready. This can provide an easier way to afford a home in Hawaii for many. The land you finance through a land loan can also eventually serve as collateral for a Hawaii construction loan

Show Me Lenders

How are land loans in Hawaii different?

Land loans are a different approach to home ownership, especially when compared to a traditional mortgage. Here are a few things to keep in mind when applying for a lot loan in Hawaii:

  • Your construction plans – It’s a good idea to have a plan in mind, even if you don’t build for a while. Your lender will want to see potential in the land that will protect them and increase its value. 
  • Match your plot to your loan –  There are several types of land loans, and it’s important to keep that in mind when looking for property. Much of the land in Hawaii is undeveloped and off the grid, which would require a raw land loan. If you are looking in an area with some infrastructure, look into unimproved and improved land loans. 
  • Evaluate your credit score- People looking for land loans should have a great credit score. Lenders  require a good credit score, preferably 720+, as well as proof of income to support your ability to repay the loan. Pay off any existing debts and evaluate your credit reports to ensure there is no false info that may ding your credit score.

Get Quotes for Your Land Loan

5 Best land loan lenders in Hawaii

If you’re in the market to purchase land in Hawaii, consider these land loan lenders that are available for projects in the state.

1. HFS Federal Credit Union

HFS Federal Credit Union has over 80 years of experience providing financial resources to those living in Hawaii. It is the largest credit union on the island, with over 50,000 members and $500 million in assets spread across 6 branches. HFS FCU offers vacant land loans for the purchase of land.

To get you the best information, we contacted HFS Federal Credit Union for more details on their land loans and here are the key features and terms:

  • Available for vacant land
  • Interest-only for vacant land loans (up to 36 months)
  • Borrow up to 90% of appraised value
  • No prepayment penalties
  • 10-year fixed options available

When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances.

2. First Hawaiian Bank

First Hawaiian Bank, the oldest and largest in the state, was founded in 1858. Today, it has 46 branch locations throughout Hawaii, as well as locations in Guam and Saipan. The organization offers competitive interest rates for land loans as well as allows for refinancing land loans into construction loans.

We reached out to First Hawaiian Bank to discuss land loan details, which you can read about below:

  • Interest only payments with balloon payment.
  • Fixed rate products.
  • Land loan can be refinanced into a construction loan.
  • Available even if you aren’t ready to begin building.

When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances.

3. American Savings Bank 

With roots going back to 1925, American Savings Bank offers a range of financial services, including vacant land loans. Currently ranked as Hawaii’s third-largest financial institution with assets of $6.7 billion, American Savings Bank is a major player when it comes to offering construction and land loans in the state of Hawaii.

We asked American Savings Bank for more details on their vacant land loan product and here is what they said:

Vacant Land Loan

  • Monthly interest-only payments for three years (term)
  • Fixed interest rate during the term
  • No prepayment penalty
  • Available for land purchase with construction plans within three years
  • Credit of up to one point paid on the land loan upon the construction refinance

When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances.

4. Hawaii Community Federal Credit Union

Hawaii Community Federal Credit Union is a member-owned location developed in 1936 by 10 coffee farmers. They continue to be the only credit union founded by farmers cultivating a unique crop (Kona coffee). Among its offerings are vacant land and construction loans on Hawaii Island, including owner-operated and investments.

We reached out to Hawaii Community Federal Credit Union to discuss land loan details, which you can read about below:

  • Vacant land loans available
  • Construction loans available
  • No point loans available
  • Vacant Land Loans are available for improved or unimproved properties on Hawaii Island, whether they’re owner-occupied or investment properties.
  • Construction loans help you finance the construction phase of your primary residence once you hire a contractor and draw up plans.

When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances.

5. Hawaii Mortgage Company

Hawaii Mortgage Company has served the people of Hawaii since 2000 and currently has over $2 billion in loans. Among its offerings are vacant land loans with fixed rates and interest-only payment options of up to $1 million for up to three years in length for residential property development.

We reached out to Hawaii Mortgage Company to discuss land loan details, which you can read about below:

  • Vacant land loans available
  • Fixed-rates
  • Interest-only payments
  • Loan terms for a maximum of 3 years
  • Up to $1,000,000 loan amount
  • Local financing
  • Vacant land loans available to offer financing while you work with your architect and builder to get your plans, specs, and permits in place.
  • Interest-only payments available

When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances.

Does a Hawaii home land loan make sense for you?

Obtaining a land loan in Hawaii has some advantages and disadvantages. A land loan enables a borrower to purchase land and construct a custom home. Lenders are more inclined to approve a loan if you plan to build a house because the house will add value to the bank’s collateral. There is no rush to begin construction after obtaining a land loan, and the funds are released directly to purchase the land. Compare your terms with a line of credit or personal loans to make sure the terms are best aligned with your needs. Whether you’re on the Big Island in Hilo, in Oahu on Honolulu, or somewhere else in Hawaii, you do have financing options.

Obtaining a land loan in Hawaii necessitates some planning ahead of time. Borrowers must find the right lender and compare the details of various lending programs offered by various banks. Borrowers also need to know that these loans can come with higher interest rates and plan accordingly when vetting their finances for the future build. Buying real estate is an exciting prospect, especially if you can build your dream home on a beautiful piece of land in Hawaii.

Of course, you should do plenty of research in advance to verify this is the right fit for you, so that you know upfront about any down payment, monthly payments, competitive rates, and any home loan alternatives that you might be able to turn to. If you discover that the best way to get your new home, however, is bypassing mortgage loans and mortgage rates and instead turning to a land loan, you want to find a lender with experience in this field.

If you’re looking to explore land and lot loans in other states, check out our national overview of land loans as a starting point in your search.

Find a Land Loan Specialist

Joshua Holt

Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.

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