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Arkansas Bridge Loan Program
Last Updated: April 19, 2025
At OfferMarket, we empower you to generate wealth through strategic real estate ventures in Arkansas. Our fully integrated platform supplies every resource you need on your investment path, such as:
• private lending
• Tailored insurance comparisons
• Exclusive access to off‑market properties
Our Arkansas Bridge Financing Solutions are crafted to deliver swift, dependable, and cost‐effective funding that enables you to acquire and upgrade 1‑4 unit residential properties throughout the Natural State. Whether your strategy involves renovating a property for a rapid resale or transforming it into a rental asset followed by a DSCR refinancing, we are committed to supporting your journey toward success.
What Is a Bridge Loan in Arkansas?
A bridge loan offers temporary financial support to cover the gap until you secure a long‑term financing arrangement. In Arkansas, these loans prove especially beneficial in scenarios such as:
Property Acquisition & Renovation: Purchase undervalued or outdated properties and refurbish them, keeping capital free for future prospects.
Cash Purchase and Refinance: Secure an off‑market property with a cash bid (a tactic for expediting closings) and later refinance to tap into the accrued equity.
Loan Transitioning: Replace an existing financing product on a property that still requires work, giving you additional time and funding to complete improvements.
As‑Is Purchases: Buy properties at below-market prices without immediate upgrades, then sell them “as‑is” at a profit.
Equity Extraction: Refinance a cash acquisition without renovations to harness existing equity for your next Arkansas project.
Extended Renovation Financing: Renew an existing bridge financing after major renovations, affording extra time to sell or convert to a long‑term rental loan.
Often termed “hard money” or “flip” loans, these versatile financing options are a popular choice among Arkansas real estate professionals.
How It Operates
A typical bridge loan for Arkansas real estate consists of two integral components:
Initial Advance
This segment of the loan covers the purchase cost and is deposited directly to the title company during the closing process.
Construction Holdback
This portion is allocated for remodeling expenses and is progressively disbursed as you satisfy predetermined draw requirements.
Our design offers flexible choices: you may opt for both components to maximize financing leverage or choose solely the upfront funding if you wish to self-finance the renovations. Many experienced Arkansas investors blend these options, while others—particularly those executing cash transactions—rely exclusively on the renovation reserve for necessary upgrades.
Your exit approach is equally adaptable. You might choose to sell immediately post-renovation, convert to rental income and refinance with a DSCR loan, or pivot from a BRRRR (Buy, Renovate, Rent, Refinance, Repeat) strategy to an outright sale if market conditions become advantageous.
Who Benefits from Arkansas Bridge Loans?
Our program suits a diverse range of investors, including:
Flip Enthusiasts: Those who intend to swiftly purchase, refurbish, and sell properties for a quick profit.
Rental Investors Using the BRRRR Technique: Investors who buy, upgrade, rent, and then refinance to recoup capital.
Many Arkansas investors strategically combine these approaches—flipping certain properties while holding others long‑term to capitalize on evolving market opportunities.
Arkansas Bridge Loan Program Criteria
Below is a detailed outline of our bridge loan specifications, uniquely adjusted for the Arkansas market:
| Parameter | Specification |
|---|---|
| Loan Amount (Minimum) | $25,000 |
| Loan Amount (Maximum) | $2,000,000 |
| After-Repair Value (Minimum) | $100,000 |
| Investment Experience | Not mandatory |
| Minimum Credit Score | 680 |
| Eligible Entity | LLC or Corporation |
| Upfront Funding | Up to 90% of the property’s purchase price |
| Renovation Reserve | Up to 100% of your allotted renovation budget |
| Maximum LTARV | 75% |
| Interest Rate | Receive a custom rate quote instantly |
| Origination Fee | 1.5 to 2 points |
| Loan Duration | 12 to 24 months |
| Points out | None |
| Prepayment Fee | None |
| Payment Structure | Interest‑only payments with a balloon payment at term end |
| Recourse Requirement | Full recourse (minimum 51% guarantee by the borrowing entity) |
| Exit Strategy – Sale | Minimum 30% return on investment |
| Exit Strategy – Refinance | Minimum 1.1 DSCR post-renovation |
| Valuation Method | Appraisal report or in‑house assessment |
| Minimum Square Footage | Single family: 700+; 2‑4 unit: 500+ per unit; Condo: 500+ |
| Maximum Acreage | 5 |
| Interest Accrual Method | Loans under $100K: full accrual; loans over $100K: interest accrues “as disbursed” |
| Advanced Draws | At the lender’s discretion |
| Down Payment Requirement | At least $10,000 |
Project Eligibility
At OfferMarket, your financial safety is our priority. With fewer than 0.5% loan defaults to date, we work alongside you to maintain this benchmark through prudent lending practices.
Projects with high levels of risk—often due to extensive or complex renovations—might encounter delays, budget overruns, or unforeseen market changes. In Arkansas, local climate trends and regional regulatory nuances add layers of complexity. Beyond simply providing funding, we function as your trusted advisor and risk strategist, setting sensible expectations at every phase.
Determining Your Upfront Funding
The upfront funding is determined by evaluating your personal track record and the specifics of your deal. We consider several key factors:
The quantity of investment properties you have managed in the past 24 months
The number of verifiable renovation projects completed in the past five years
A minimum credit score of 680 (with a preference for scores above 720)
Professional qualifications (such as being a licensed Realtor, General Contractor, or Professional Engineer)
If the agreed purchase price is greater than our current “as‑is” appraisal, the upfront funding is limited to the lower appraisal value. Additionally, your planned exit strategy influences the funding: properties set for resale generally require a projected gross margin of at least 30% and a minimum profit of $15,000, whereas rental conversions need a post-upgrade DSCR of at least 1.1. In rural regions of Arkansas, further experience requirements might lower the upfront percentage.
Experience-Based Tiers
We use a tier system to evaluate your experience based on documented project history:
| Tier | Projects Completed |
|---|---|
| 1 | 0 |
| 2 | 1–2 |
| 3 | 3–4 |
| 4 | 5–9 |
| 5 | 10+ |
Upfront Funding by Tier
| Tier | Upfront Funding (% of Purchase Price) |
|---|---|
| 1 | 80% (up to 85% with exceptional credit or liquidity) |
| 2 | 85% |
| 3 | 85% |
| 4 | 90% |
| 5 | 90% |
Adjusting the Upfront Funding
Funding levels may adjust based on specific risk attributes:
| Condition | Impact on Funding |
|---|---|
| Credit score under 720 | -5% |
| Full-scale gut renovation required | -5% |
| Venturing into a new Arkansas market | - 5% |
| Licensed Realtor | up to +5% |
| Licensed General Contractor | up to +10% |
| Licensed Professional Engineer | up to +10% |
| Rural property projects (with Tier 3+ experience requirement) | -20% (3+ experience) |
Renovation Scope Classification & Eligibility
Defining the Renovation Scope
Minor Renovation: Costs less than 25% of the purchase price
Moderate Renovation: Costs range from 25% to 49.99% of the purchase price
Substantial Renovation: Costs range from 50% to 99.99% of the purchase price
Extensive Renovation: Costs meet or exceed 100% of the purchase price; common in cases involving major additions or significant repair needs
Eligibility by Renovation Scope
| Tier | Experience | Minor | Moderate | Substantial | Extensive |
|---|---|---|---|---|---|
| 1 | 0 | Eligible | Ineligible | Ineligible | Ineligible |
| 2 | 1–2 | Eligible | Eligible | Eligible | Ineligible |
| 3 | 3–4 | Eligible | Eligible | Eligible | Eligible |
| 4 | 5–9 | Eligible | Eligible | Eligible | Eligible |
| 5 | 10+ | Eligible | Eligible | Eligible | Eligible |
LTARV (Loan-to-After-Repair Value) Limits
| Tier | Experience | Minor | Moderate | Substantial | Extensive |
|---|---|---|---|---|---|
| 1 | 0 | 70% | Ineligible | Ineligible | Ineligible |
| 2 | 1–2 | 70% | 70% | 70% | Ineligible |
| 3 | 3–4 | 75% | 75% | 75% | 70% |
| 4 | 5–9 | 75% | 75% | 75% | 70% |
| 5 | 10+ | Eligible | Eligible | Eligible | Eligible |
LTFC (Loan-to-Full-Cost) Limits
For projects with an Extensive Renovation scope—where the renovation budget surpasses the purchase or “as‑is” value—we use the LTFC metric. For instance, an LTFC of 85% implies that we finance 85% of the total project cost, with you providing the remaining 15%.
| Tier | Experience | Minor | Moderate | Substantial | Extensive |
|---|---|---|---|---|---|
| 1 | 0 | 70% | Ineligible | Ineligible | Ineligible |
| 2 | 1–2 | 70% | 70% | 70% | Ineligible |
| 3 | 3–4 | 75% | 75% | 75% | 70% |
| 4 | 5–9 | 75% | 75% | 75% | 70% |
| 5 | 10+ | Eligible | Eligible | Eligible | Eligible |
Case Studies
Case Study: Inexperienced Investor
Property Price: $200,000
Experience Tier: 1 (no prior verified projects)
Credit Score: 695
Renovation Budget: $48,000
After-Repair Value: $300,000
Upfront Funding: $150,000 (75% of purchase price)
Renovation Reserve: $48,000
Aggregate Loan Amount: $198,000
LTARV: Approximately 66%
LTFC: Approximately 80%
Interest Accrual: Full accrual applies
Case Study: Inexperienced with Stellar Credit
Property Price: $200,000
Experience Tier: 1
Credit Score: 750
Renovation Budget: $48,000
After-Repair Value: $300,000
Upfront Funding: $160,000 (80% of purchase price)
Renovation Reserve: $48,000
Aggregate Loan Amount: $208,000
LTARV: Approximately 69.3%
LTFC: Approximately 83.9%
Interest Accrual: Based on disbursed funds
Case Study: Seasoned Investor with 5 Verified Projects
Property Price: $200,000
Experience Tier: 4 (5 projects completed)
Credit Score: 750
Renovation Budget: $40,000
After-Repair Value: $300,000
Upfront Funding: $180,000 (90% of purchase price)
Renovation Reserve: $40,000
Aggregate Loan Amount: $220,000
LTARV: Approximately 73.3%
LTFC: Approximately 91.7%
Interest Accrual: Disbursed based method
Refinancing Based on “As Is” Valuation
Our conventional underwriting uses your total investment cost (purchase price plus any incurred costs) to ensure your commitment to the project. However, if you own a well-established Arkansas property with an “as‑is” valuation exceeding your investment, we may consider financing based on the higher market value. Criteria include:
The property must be in habitable condition (at least C4) without major structural or safety concerns.
Ownership must extend for at least three years.
For refinancing an existing loan, the current lender must not be a bridge or construction lender, with no associated default fees or penalties.
A minimum credit score of 680 is required.
Applicants should be in Experience Tier 3 or above, having completed four or more verifiable renovation projects.
You must provide compelling evidence that the current “as‑is” value surpasses your investment, verified by recent local sale comparisons.
The scenario should be logical—e.g., a previously rented property now vacant and ripe for renovation and resale.
Transactions with Wholesalers and Price Adjustments
When securing a property via a wholesaler, assignment fees or price escalations may be financed as long as they do not exceed 20% of the wholesaler’s original purchase price. Any excess must be funded out-of-pocket. For instance:
A‑B Contract (seller/wholesaler): $200,000
B‑C Contract (assignment fee): $50,000
As‑Is Valuation: $250,000
Funding Basis: $240,000
Key guidelines include:
• Assignment fees or price adjustments are financeable up to 20% of the purchase cost.
• All transactions must be completed at arm’s length with complete documentation.
• Finder or referral fees remain ineligible for financing.
Construction Holdback
The construction holdback is disbursed based on submitted draw requests aligned with verified progress. Should you choose to self-finance the renovations, opting out of the reserve is available. For loans exceeding $100,000, unused funds do not accumulate interest (accrual based on funds disbursed).
Draw Request Parameters:
| Criterion | Specification |
|---|---|
| Minimum Draw Request | None |
| Maximum Draw Amount | Up to 100% of the construction holdback |
| Permissible Number of Draws | Unlimited |
| Materials Delivered | Coverage up to 50% (with receipt/invoice documentation) |
| Self‑Service Inspection | Conducted via app‑based inspection |
| Processing Time | 0 to 2 business days |
| Draw Processing Fee | $270 |
| Wire Transfer Fee | $30 |
Appraisal & Valuation Standards
For Arkansas bridge loans, interest reserves are prepaid interest amounts collected at closing and held in a servicing escrow account. If your Arkansas loan includes an interest reserve, we’ll apply it to accrued interest first—drawing from that escrow—before you begin making monthly interest payments from your bank account.
In‑House Valuation Eligibility
If eligible, you may opt for an in‑house valuation instead of a conventional third‑party appraisal. To qualify, the following conditions must be met:
| Criteria | Requirement |
|---|---|
| Property Classification | Single‑family, duplex, triplex, or fourplex |
| Experience Tier | Tier 4 or higher |
| Minimum Credit Threshold | 720 |
| Rural Areas | No |
| New Market Entries | No |
| Maximum LTARV | 70% |
Even if these standards are met, a formal interior or exterior appraisal might still be required based on your specific situation.
When Only Exterior Appraisals Are Accepted
Exterior‑only appraisals are acceptable for certain acquisitions, including:
• REO (Real Estate Owned) transactions
• Foreclosure auction buys
• Sheriff’s sales
• Online auction purchases
• Bankruptcy-related property acquisitions
Exterior appraisals must be recent (not older than 120 days). If between 120 and 179 days old, recertification is mandated.
When a Full Interior Appraisal is Essential
If your case doesn’t qualify for an in‑house or exterior valuation, a complete interior appraisal is necessary. The required appraisal forms vary by property type:
| Property Type | Appraisal Forms Required |
|---|---|
| Single‑Family | 1004 + 1007 ARV with “as‑is” value clearly indicated |
| 2‑4 Unit | 1025 + 216 ARV including “as‑is” value |
| Condominium | 1073 + 1007 ARV with non‑gridded “as‑is” valuation |
Unless you are transferring an existing appraisal, we will order one through an approved appraisal management company (AMC). You will be responsible for the AMC charges, and delayed payments may halt the loan process.
Transferring an Existing Appraisal
An appraisal you have already commissioned may be accepted if it fulfills all of the following criteria:
Issued via a pre‑approved AMC (appraisal management company)
Not older than 180 days at closing
If between 120–179 days, it must be recertified
The original lender must supply us with:
A signed transfer letter complying with Appraiser Independence Requirements (AIR)
The complete PDF appraisal report
The XML file version of the appraisal
Proof of payment (invoice copy)
Meeting these conditions helps ensure a smooth, delay‑free process.
Scenario: Stabilized Bridge Loan in Arkansas
For properties in pristine condition (rated C4 or better) requiring minimal deferred repairs, we can finance up to 75% of the “as‑is” valuation without the need for a full renovation draw. This stabilized option is ideal when a property is primed for a swift sale or immediate rental.
| Criteria | Guideline |
|---|---|
| LTV (maximum) | Tier 1: 70% Tier 2: 70% Tier 3: 75% Tier 4: 75% Tier 5: 75% |
| LTFC (maximum) | Tier 1: 80% Tier 2: 80% Tier 3: 90% Tier 4: 90% Tier 5: 90% |
| Appraisal condition rating | C1, C2, C3 or C4 |
| Loan Term (maximum) | 12 months |
Essential Loan Specifications for Arkansas
Parameter |
Details |
|---|---|
| Loan Size | $25,000 to $2,000,000* |
| Property Units | 1 – 4 |
| Eligible Property Categories | Non‑owner occupied residential properties: Single‑family homes, townhomes, small multifamily (2‑4 units), warrantable condos, planned developments |
| Minimum Area | Single Family: ≥700 SQFT; 2‑4 Unit/Condo: ≥500 SQFT per unit; Maximum acreage: 5 acres |
| Loan-to‑Cost Ratio | Up to 90% of the purchase price and up to 100% of the renovation budget |
| Loan-to‑After‑Repair Ratio | Up to 75% |
| Down Payment | At least $10,000 (for properties under $100K) |
| Standard Loan Term | 12 months (extensions available for specific projects: 18‑24 months) |
| Extension Options | Up to 50% of the original term (additional fees apply) |
| Points | 1.5 to 2 points (minimum fee of $2,000) |
| Prepayment Charge | None |
| Occupancy Requirement | Must be strictly non‑owner occupied (solely for business use) |
| Transaction Nature | Arm’s‑length purchases and refinancings |
| Geographical Focus | Arkansas |
| Amortization Structure | Interest‑only payments with a lump sum balloon at maturity |
| Interest Accrual Method | Loans under $100K: full accrual; loans over $100K: accrual only on disbursed funds |
For loans exceeding $1M, further guidelines apply.
Extensions: Keeping Your Project on Track
Bridge loans are designed as short-term financing (typically 12 to 24 months). If the project extends beyond the original term, you can apply for an extension—though these incur extra fees and additional interest. To avoid such extensions, consider:
• Engaging seasoned general contractors familiar with Arkansas’s market challenges
• Setting realistic, manageable renovation scopes
• Ensuring quick access to the property (avoiding delays due to tenant issues or eviction complexities)
• Preparing a dual exit strategy—plan to sell or refinance depending on market conditions
Extension Duration Options
| Original Loan Term | Maximum Extension |
|---|---|
| 12 months | 6 months |
| 18 months | 9 months |
| 24 months | 12 months |
Extension Fee Schedule
| Extension Period | Fee |
|---|---|
| 3 months (first request) | 1% of the total loan amount |
| 3 months (second request) | 1.5% of the total loan amount |
| 6 months (first request) | 2.5% of the total loan amount |
*Extensions require verification that your builder’s risk insurance remains active during the extended term.
Ineligible Property Categories
We do not finance projects involving:
• Mixed‑use developments
• Multifamily properties with 5 or more units
• Condotels and cooperative housing
• Mobile or manufactured homes
• Commercial properties
• Rustic cabins or log homes (unless modernized and redesigned)
• Properties with active oil/gas leases
• Working farms, ranches, or orchards
• Vacation or seasonal rental properties
• Properties accessible solely by dirt or unpaved roads
Exceptional Circumstances
We may entertain exceptional cases on an individual basis, including:
• Guarantor credit scores in the 660–679 range
• Leasehold or ground rent arrangements
• Single‑family properties between 500 and 699 SQFT
• 2‑4 unit properties featuring any unit between 400 and 499 SQFT
• Situations where the upfront funding is based on an “as‑is” value that exceeds the cost basis
• Non‑arm’s‑length transactions
• Financing of interest charges
Borrower & Guarantor Prerequisites
To qualify for an Arkansas bridge loan, please note the following:
| Item | Eligibility Requirements |
|---|---|
| Eligible Entities | Must be formed as an LLC or Corporation (nonprofits are excluded). |
| Approved Borrowers | U.S. Citizens, U.S. Permanent Residents, and eligible Foreign Nationals. |
| Requirements for Foreign Nationals | Must provide a valid passport and U.S. visa (travel/student visas are excluded unless under the Visa Waiver Program). |
| Minimum Credit Score | 680 (exceptions possible for scores between 660–679) |
| Credit Documentation | A current Tri‑Merge credit report (not older than 120 days) is necessary. |
| Liquidity Standards | Guarantors must hold liquid assets equal to the projected cash-to-close plus 25% of the renovation budget. |
| Guaranty Structure | For property acquisitions: a minimum 51% guarantee by the borrowing entity; for cash‑out refinancing: 100% guarantee required; full recourse applies. |
| Net Worth Requirement | Combined guarantor net worth should be at least 50% of the overall loan amount. |
Verifying Sufficient Liquidity
We require that you—or one or more guarantors—demonstrate sufficient liquid resources to cover both the estimated cash-to-close and at least 25% of the renovation budget. Acceptable liquid assets include:
Personal bank accounts
Business bank accounts registered under the borrowing entity
Other business accounts (with supporting operating agreements)
Personal and business brokerage accounts
Retirement accounts (with only 50% of the balance countable due to withdrawal limitations)
Though not mandatory, a dedicated business bank account is advisable for clearer accounting and risk management. Besides the required down payment (which is reflected on your settlement statement and wired by you at closing), simply proving control over your funds suffices.
Credit & Background Evaluation
We assess your credit history and background to manage risk, following these guidelines:
When multiple credit scores appear on your Tri‑Merge report, we use the median value.
If only two scores are available, we take the lower score.
Applicants with no mortgage tradelines must provide six months of interest reserves.
Those with fewer than five tradelines in total are also subject to the six‑month reserve requirement.
Additional Considerations:
Bankruptcy: Must be resolved over 4 years before closing.
Foreclosure: Must be settled at least 4 years prior to the loan closing.
If bankruptcy or foreclosure occurred 4–7 years ago, a reserve of at least three months is necessary.
Late mortgage payments within the past year require a Letter of Explanation (LOE) and could lead to a denial.
Outstanding balances on any accounts (mortgage, credit cards, HELOCs) must be cleared before funding.
Any involuntary liens or judgments (e.g., child support, tax liens) must be settled in full.
Pending civil lawsuits require an LOE; approval is subject to the loan committee’s judgment.
Pending criminal cases or serious offenses render you ineligible.
Repeated offenses may be considered with an LOE on a case‑by‑case basis.
Interest Reserves & Capitalized Interest
Interest Reserves
Funds are held in an escrow account and allocated to cover accrued interest before monthly payments commence.
| Situation | Required Interest Reserve |
|---|---|
| At the lender’s discretion | 0 months |
| Guarantor with FICO 700+ | 1 month |
| Guarantor with FICO 660–699 | 3 months |
| Guarantor with FICO 660–699 plus additional concerns | 6 months |
Interest Payments
To help preserve cash flow during the renovation period, your interest payments might be added to the final payoff instead of being made monthly. For example, on a $200,000 loan at 12% over 9 months:
Principal: $200,000
Interest Rate: 12%
Loan Duration: 9 months
Accumulated Interest: Approximately $18,000
Final Payoff Breakdown:
Remaining Principal: $200,000
Remaining Interest: $18,000
Property Acquisition Guidelines for Bridge Loans in Arkansas
Emerging Markets: Deals in new areas might require a contractor agreement or detailed justification if such an agreement is not in place.
Wholesale Transactions: Extra documentation is needed for chains of assignments or noticeable price escalations.
Complex or Condo Projects: For properties needing significant modifications, provide detailed architectural or engineering plans.
Always include signed purchase contracts, closing statements, payoff letters (if applicable), documented records of past projects, and formation documents for your entity.
Bridge Loan Insurance Essentials
Safeguard your investment by ensuring the property is adequately insured. Our Builders Risk or Fix and Flip insurance covers properties undergoing renovations, vacant homes, or those not in optimal condition.
Mandatory Insurance Coverages & Limits
| Coverage Type | Coverage Limit | Mandatory? |
|---|---|---|
| Dwelling | Replacement cost or full loan amount (without coinsurance) | Yes |
| Liability | $1 Million per occurrence / $2 Million annual aggregate | Yes |
| Builders Risk | Included | Yes |
| Flood | At least the higher of $250,000 or the loan balance (if applicable in a FEMA zone) | Conditional |
Additional Insurance Details
| Detail | Requirement |
|---|---|
| AM Best Rating | A‑ or higher (preferably A‑VIII or superior) |
| Policy Type | Special form coverage |
| Deductible | Between $1,000 and $5,000 |
| Lender Listing | Must identify OfferMarket Capital LLC as Mortgagee and Additional Insured |
| Exclusion Criteria | No exclusions for wind, hail, or named storms |
| Cancellation Notice | Minimum 30‑day prior notification required |
💡 Insider Tip: Once you take control of your Arkansas property, install smoke detectors, secure your locks, and consider installing security cameras. These actions not only bolster safety but also support your insurance coverage requirements.
Commonly Asked Questions About Arkansas Bridge Loan
What Regions of Arkansas Are Served?
OfferMarket exclusively finances bridge loans for properties across Arkansas. Our expertise encompasses urban hubs like Little Rock and Fayetteville to quaint communities throughout the Natural State.
Is it Possible to Hold More Than One Bridge Loan at a Time?
Absolutely. Many Arkansas investors manage multiple bridge loans concurrently. However, if we determine your liquidity or project pace may be overextended, we will guide you on risk management for sustained success.
Are Bridge Loans Regarded as Commercial Financing?
Yes, because these loans are provided to your business entity (LLC or Corporation), they are considered commercial, business‑purpose financing.
What is the Minimum Loan Size?
The lowest financing option available is $25,000.
Which Property Types Qualify?
We fund non‑owner occupied residential properties with 1–4 units, including:
• Single‑family residences
• Duplexes, triplexes, and quadplexes
• Townhomes and warrantable condominiums
Properties with 5–9 units, large multifamily complexes, and non‑residential commercial properties do not qualify under this program.
How is LTV Calculated?
For our bridge loans, LTV generally refers to LTARV (Loan‑to‑After‑Repair Value). Your upfront funding is based on the lesser of the “as‑is” value and the contract purchase price, while LTARV is determined as the total loan amount divided by the property’s projected market value post‑renovation.
What Credit & Experience Criteria Must Be Met?
A minimum FICO score of 680 is required, though borrowers with scores between 660–679 may qualify under special conditions. While experience isn’t strictly necessary, documented renovation projects can enhance your funding terms under our tier system.
Does Wholesaling Count as Experience?
No, wholesaling does not qualify as verifiable experience because it does not involve assuming the financial responsibility for renovations.
What Documentation Is Necessary?
For Purchases:
| Document | Description |
|---|---|
| Purchase Agreement | Fully executed by both buyer and seller |
| Credit Report | Soft tri‑merge check for every guarantor in your entity |
| Background Check | Required for all guarantors |
| Project History | Documented record of past projects for each guarantor |
| ID Proof | Valid government-issued photo ID (driver’s license, passport, or green card) |
| Entity Formation Documents | Articles of Organization, Operating Agreement/Bylaws, Certificate of Good Standing, and W‑9 |
| Renovation Scope | Detailed budget outlining refurbishment plans and ARV determination |
| Appraisal Report | A payment link will be provided; the appraisal is added to your file |
| Bank Statements | Two recent statements per guarantor (personal, business, or brokerage accounts) |
| Letter of Explanation | Required for clarifications such as large deposits or credit concerns |
For Refinances:
| Document | Description |
|---|---|
| Settlement Statement | Must be executed by you and your closing representative |
| Credit Report | Soft tri‑merge check for each guarantor |
| Background Check | Compulsory for all guarantors |
| Project History | Previous project records for every guarantor |
| ID Proof | Valid photo ID (driver’s license, passport, or green card) |
| Entity Formation Documents | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W‑9 |
| Detailed Cost Breakdown | An itemized report of funds already spent (purchase, holding, or repairs) |
| Renovation Scope | Comprehensive budget to determine ARV and schedule draw disbursements |
| Appraisal Report | Provided via a designated link; upload upon completion |
| Bank Statements | The two most recent statements per guarantor (personal or business accounts accepted) |
| Letter of Explanation | To clarify any financial discrepancies or background issues as needed |
What Are the Special Conditions for Loans Exceeding $1M?
| Aspect | Requirement |
|---|---|
| Experience | Completion of at least three similar renovation projects, ideally at or above the property’s value |
| Market Viability | At least three comparable sales within a 2‑mile radius (on MLS, within the past six months) |
| Minimum Credit Score | A FICO score of 680 with at least five tradelines showing over 24 months of history |
| Rural Classification | The property should not be designated as rural by relevant authorities (CFPB, USDA, or appraisal report) |
| Documented Track Record | Verified records of past projects that demonstrate relevant scope and complexity |
Glossary of Key Terms
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit – an additional, self-contained living space on the same lot as the primary residence |
| Arms‑Length | A transaction conducted between independent parties ensuring fair market conditions |
| Non‑Arms‑Length | Transactions where personal or business relationships may influence the fairness of the deal |
| Upfront Funding | The portion of the loan allocated to cover the purchase price, paid at the time of closing |
| Renovation Reserve | Funds set aside specifically for remodeling costs, released via draw requests as milestones are met |
| Interest Reserves | Funds collected at closing to cover accrued interest until monthly payments begin |
| LOE (Letter of Explanation) | A document submitted to provide additional details or clarifications regarding specific financial or credit issues |
| LTC (Loan-to‑Cost) | Ratio of the loan amount to the total cost of the project (purchase price plus renovation expenses) |
| LTFC (Loan-to‑Full‑Cost) | Ratio of the total loan amount to the overall project cost, used in high‑risk, extensive renovations |
| LTV (Loan-to‑Value) | Typically calculated as the ratio of the loan amount to the property’s “as‑is” value |
| LTARV (Loan-to‑After‑Repair Value) | Ratio of the total loan amount to the property’s estimated value after renovations |
| Accrued Interest (As Disbursed) | Interest that is charged only on the funds actually released during the loan term |
| Full Accrual Interest | Interest calculated on the total approved loan amount, regardless of disbursement status |
| Lopsided Deal | A scenario where the property’s purchase price or “as‑is” value is disproportionately lower than the anticipated renovation costs |
| GC Agreement | A contract with a General Contractor that outlines project management and execution responsibilities |
| DSCR (Debt Service Coverage Ratio) | A metric measuring a property's income relative to its debt obligations, usually computed as Rent ÷ PITIA |
Request Your Instant Arkansas Bridge Financing Quote
OfferMarket Capital LLC proudly serves the Arkansas real estate community with specialized bridge financing and DSCR-based funding for 1‑4 unit residential properties. Our mission is to help you cultivate enduring wealth in the Natural State, and we are eager to collaborate on your next project.
Every month, thousands of Arkansas investors enjoy complimentary membership benefits, which include:
• Access to exclusive private lending solutions
• Customized insurance rate comparisons
• Privileged access to off‑market property listings
• Insightful market data and analysis
Are you prepared to elevate your Arkansas real estate ventures? Contact us now to receive your immediate bridge financing quote and embark on your path to financial prosperity in the Natural State!
Thousands of real estate investors get value from OfferMarket every month. Membership is entirely free and includes the following benefits:
💰 Private lending ☂️ Insurance rate shopping 🏚️ Off market properties 💡 Market insights
