— ADJUSTABLE RATE MORTGAGE
Adjustable Rate
Mortgage (ARM)
Flexible mortgage financing with an initial fixed rate period followed by scheduled rate adjustments, available in Hawaii and other markets where Pacific Home Loans is licensed.
— ABOUT ADJUSTABLE RATE MORTGAGES
Hawaii Adjustable Rate
Mortgage (ARM)
An Adjustable Rate Mortgage (ARM) can be a strategic option for Hawaii homebuyers and investors who do not plan to hold a property long term. Unlike a fixed rate mortgage, an ARM begins with a set interest rate for a defined period and then adjusts at scheduled intervals based on market conditions and program guidelines.
Pacific Home Loans offers ARM solutions throughout Maui, Oahu, Kauai, and the Big Island – including conventional, government-backed, jumbo, alternative documentation, and portfolio options.
Multi-State Availability
Pacific Home Loans provides adjustable rate mortgage solutions in multiple states, including Hawaii, California, Nevada, and other markets where we are licensed.
While this page focuses on Hawaii-specific guidance, ARM programs may be available in other states based on borrower profile, property type, and program eligibility.
— ARM OPTIONS
How an Adjustable Rate
Mortgage Works
ARM programs are commonly structured as 3/1, 5/1, 7/1, or 10/1 ARM. The first number represents the initial fixed rate period (in years). The second number represents how often the rate adjusts after the fixed period ends.
— LOAN OPTIONS
Why Choose an
ARM in Hawaii?
An ARM may be appropriate if you plan to sell within 5–10 years, expect to refinance before the fixed period ends, prefer lower initial payments, are investing with a defined exit strategy, or are purchasing a second home or resort property.
Rate Adjustment Structure
After the initial fixed period, the interest rate adjusts at scheduled intervals based on a published index plus a margin. Rate caps limit how much the rate may change at each adjustment and over the life of the loan. Specific caps and adjustment terms vary by program.
ARM Loan Programs Available in Hawaii
Conventional ARM
→ Hawaii Home Loan Programs
Government ARM
→ FHA Loan
→ VA Loan
Jumbo ARM
→ Hawaii Jumbo Loan
Alternative Documentation ARM
ARM structures may also be available under bank statement programs, 1099 income programs, asset-based lending, and DSCR investment loans.
→ Hawaii Alternative Documentation (Non-QM) Loan Programs
Portfolio ARM – Up to $30,000,000
For luxury or structured capital scenarios, portfolio ARM solutions may be available.
→ Portfolio Loans & Flexible Financing Solutions
— ARM LOAN OPTIONS
Adjustable Rate Mortgages
Considerations
ARM vs Fixed Rate Mortgage
When choosing between an adjustable-rate mortgage (ARM) and a fixed-rate mortgage, it really comes down to your financial goals and how long you plan to stay in the home. A fixed-rate mortgage offers the stability of a consistent interest rate and predictable monthly payment for the life of the loan – a great option for buyers who value long-term certainty. An adjustable-rate mortgage, on the other hand, typically starts with a lower initial interest rate for a set period – commonly 5, 7, or 10 years – before adjusting periodically based on market conditions. For buyers who plan to sell or refinance before the initial fixed period ends, an ARM can be a smart strategy to take advantage of lower rates and reduced monthly payments early on. Our team at Pacific Home Loans will help you weigh the pros and cons of each option so you can choose the mortgage that best fits your timeline and financial goals.
Condo & Resort Considerations in Hawaii
Purchasing a condo or resort property in Hawaii comes with a unique set of lending considerations that set it apart from a standard home purchase. Many Hawaii condominiums – particularly those in resort or vacation rental communities – are classified as non-warrantable condos, meaning they may not meet the guidelines required for conventional Fannie Mae or Freddie Mac financing. Factors such as a high percentage of short-term rentals, investor-owned units, or hotel-style management structures can affect a condo’s warrantability and the loan products available to you. At Pacific Home Loans, we have deep experience navigating Hawaii’s condo and resort lending landscape and have access to portfolio and specialty loan products designed specifically for these property types. Whether you’re purchasing a primary residence, a vacation home, or an investment property in one of Hawaii’s iconic resort communities, we’re here to help you find the financing solution that works.
