A Hawaii DSCR loan is business-purpose financing on a 1-4 family rental, secured by a mortgage. Hawaii's conveyance tax does not apply to any document given to secure a debt, under HRS 247-3.
Hawaii gives lenders a court path and a power-of-sale path, and the owner-occupant protections in its foreclosure law don't extend to investors. Its landlord rules cap the deposit and set a 14-day return.
If a Hawaii rental is a condo, the building matters as much as the unit; see how lenders review condo projects.
How are rental property loans foreclosed in Hawaii?
Hawaii allows judicial foreclosure by action under HRS 667-1.5 and non-judicial foreclosure under a power of sale under HRS 667-21, and the right to convert a non-judicial foreclosure to judicial under HRS 667-53 belongs to owner-occupants of residential property.
- HRS 667-21 describes the power of sale process as an alternative to foreclosure by action.
- An investor who does not occupy the property does not have the owner-occupant conversion right.
Exception: Notice requirements differ by path. Ask a Hawaii attorney about a specific property.
According to HRS 667-1.5, HRS 667-21 and HRS 667-53, Hawaii State Legislature, as of October 2026.
Does Hawaii's conveyance tax apply to a mortgage?
No. HRS 247-3(2) exempts any document or instrument given to secure a debt or obligation from the conveyance tax, which applies to transfers of realty by deed under HRS 247-2.
- Under HRS 247-2, the conveyance tax on a condo or single-family home bought by a purchaser not eligible for the county homeowner's exemption starts at 15 cents per $100 under $600,000, and at 10 cents per $100 otherwise, rising with price.
- A mortgage securing the loan is exempt.
Exception: Get the conveyance tax figure for the purchase deed from escrow.
According to HRS 247-3 and HRS 247-2, Hawaii State Legislature, as of October 2026.
What Hawaii landlord rules affect a rental property's numbers?
Hawaii caps a security deposit at one month's rent, plus an agreed pet deposit also capped at one month's rent, and requires its return no later than 14 days after the rental agreement ends, under HRS 521-44.
| Item | HRS 521-44 rule |
|---|---|
| Security deposit | Up to one month's rent |
| Pet deposit, if agreed | Up to one month's rent |
| Return deadline | 14 days after termination |
Exception: Read the full section for permitted deductions before withholding any amount.
According to HRS 521-44, Hawaii State Legislature, as of October 2026.
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This page is general education about business-purpose real estate financing and state law as published by official sources on the date shown. It is not legal, tax or lending advice, not an offer to lend and not a rate quote. Laws and lender guidelines change; confirm current rules with the lender, the title company and your own attorney or tax adviser.