Hawaii Private Money
Lending Guide

Hawaii at a Glance

Security InstrumentMortgage (Deed of Trust also used)
Foreclosure TypeJudicial and Non-Judicial
Typical Foreclosure TimelineJudicial: 6-12 months; Non-Judicial: 3-4 months
Usury LimitsNo specific usury statute for commercial loans; 12% for consumer loans
LicensingHawaii Mortgage Loan Recovery Fund requirements may apply

Private Money Lending in Hawaii

Hawaii's private lending market is active due to high property values and strong tourism-driven investment, concentrated on Oahu, Maui, and Big Island.

This guide covers the essential legal and compliance considerations for private money lenders originating loans secured by real property in Hawaii. Whether you are a local private money lender or expanding into Hawaii from another state, understanding these requirements is critical to protecting your investments and ensuring enforceability of your loan documents.

Key Compliance Considerations for Hawaii

Hawaii permits both judicial and non-judicial foreclosure; non-judicial requires a power of sale clause in the mortgage

The state has mandatory mediation for residential owner-occupied properties (Act 48)

Hawaii is a judicial confirmation state — even non-judicial foreclosure sales may require court confirmation

Property values are among the highest in the nation, resulting in larger loan amounts and higher risk concentration

Generate Hawaii-Compliant Loan Documents

Automate Loan Docs generates complete, Hawaii-specific document packages that comply with all applicable state requirements. Every template is drafted by the attorneys at Geraci LLP, whose team has over 30 years of combined experience advising private money lenders across all 50 states — including extensive experience with Hawaii lending transactions.

This guide is for informational purposes only and does not constitute legal advice. Private lending laws are complex and change frequently. Consult with a qualified attorney before originating loans in Hawaii. The attorneys at Geraci LLP are available for state-specific legal consultation.

Related: Usury Laws by State | Deed of Trust vs Mortgage | Multi-State Lending Guide | Glossary

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