Aloha Aeveryone!
Can anyone explain how construction loans work for building a new home on the BI? We would like to have an understanding of how these work prior to looking for a lender? Also, would staying with a lender on the Island have any advantages to using one from the Mainland? Any input, comments, advice is much welcome! We are at the next step getting ready to finally start on coming back "Home"!
Much Mahalo,
Jim & Bernadette

Talk to a loan officer instead of a lender. I highly recommend Karen Kline (808.756.7429 or karen@karenkline.com) her web site is http://karenkline.com. Forget dealing with a mainland lender directly. They will promise you the moon but they can't deliver. If you want to hear some nightmares that happened to my clients feel free to e-mail me.

John,
As always thanks for the heads up! I will be emailing you! And making a phone call to your recomendation!
Mahalo!
Jim and Bernadette

The problem is most mainland banks/brokers don't know their ass from a hole in ground when it comes to Hawaii. Since your property is in Ka'u after they agree to the loan ask them if they give out loans in Lava Zone (Put your zone # in here) and you will hear dead silence. They will say let me get back to you. And when they do they will tell you sorry but we don't lend money out on property in Lava Zone (Put your zone # in here). Ask me how I know!!!

I would think it would be harder to get home insurance in a Lava Zone than it would be to get a mortgage on a home in a lava zone. If you can get quality insurance, why wouldnt a bank loan you the money....if something happens, someone's getting paid...and the lender always gets paid first.