Colorado Bridge Loan Program

Last Updated: April 18, 2025

At OfferMarket, our goal is to help you build wealth through smart real estate investments in Colorado. We’ve developed a vertically integrated platform to provide you with every tool needed for your investment journey, including:

• Private capital lending

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• off-market properties

Our Colorado Bridge Loan Program is designed to provide fast, reliable, and affordable financing, helping you acquire and enhance 1–4 unit residential investment properties throughout the Centennial State. Whether your plan is to quickly flip a property for profit or convert it into a rental asset with a DSCR refinance, we’re here to partner with you for success.

What Is a Bridge Loan in Colorado?

A bridge loan is a temporary financing solution created to fill the gap between purchasing a property and securing a longer-term financing option. In the Colorado market, these loans are especially useful for scenarios such as:

• Acquisition & Rehabilitation: Purchase a distressed or outdated property and renovate it, preserving cash for future opportunities.

• Cash Purchase Refinance: Buy a property off-market with a cash offer (often necessary for fast closings), then refinance to recover equity and fund its improvements.

• Loan Replacement: Replace an existing loan on a property that still requires repairs, giving you additional time and funds to finish the renovations.

• As-Is Purchases: Buy properties below market value with no intention of upgrading them, then resell "as-is" for a profit.

• Equity Extraction: Refinance a cash purchase with no renovations planned, allowing you to leverage existing equity for your next investment.

• Extended Rehab Financing: Refinance an existing bridge loan once major renovations are complete, providing more time to either sell or convert the property into a long-term rental.

Often referred to as "hard money" or "fix-and-flip" loans, these financing options are highly flexible and popular among Colorado’s real estate investors.

How It Works

A bridge loan for Colorado properties typically consists of two main components:

Initial Advance

This is the portion of the loan that covers the purchase price and is wired to the title company at settlement.

Construction Holdback

This portion of the loan is reserved for renovation expenses and is disbursed to you in stages as you meet draw requirements.

Flexibility is key to the design of this loan: you can choose to receive both components to maximize leverage or opt for just the initial advance if you plan to self-fund repairs. Many experienced investors in Colorado combine both options, while others—especially those acquiring cash deals—use only the holdback to complete necessary improvements.

Your exit strategy is flexible as well. You may choose to flip the property immediately upon completion or rent it out and refinance into a DSCR loan. If market conditions shift, it's acceptable to pivot—say, from a BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy to an outright sale if resale valuations look promising.

Who Uses Colorado Bridge Loans?

The program is designed for:

• Fix and Flip Investors: Those who purchase, renovate, and quickly sell properties for a profit.

• Rental Investors Using the BRRRR Method: Investors who buy properties, upgrade them, rent them out, and then refinance to free up capital.

In Colorado, it’s common for investors to mix these strategies—flipping some properties while holding onto others as long-term rentals to capitalize on changing market dynamics.

Program Guidelines

Here’s an overview of our bridge loan criteria designed specifically for the Colorado market:

Project Eligibility

At OfferMarket, we’re committed to helping you succeed while safeguarding your investments. Less than 0.5% of our loans have ever defaulted, and we work closely with you to maintain that strong track record by emphasizing responsible lending.

High-risk projects—especially those involving extensive or complicated rehabilitation—tend to carry a higher chance of delays, cost overruns, and unforeseen market shifts. These challenges are particularly relevant in Colorado, where diverse climates and local regulations can complicate projects. Our role is to serve as not just a lender, but as your deal advisor and risk manager, setting realistic expectations every step of the way.

Initial Advance

The initial advance is determined by a combination of your experience and the details of your specific deal. We evaluate several factors, including:

• The number of investment properties you’ve owned in the last 24 months

• The number of verifiable rehabilitation projects completed in the past 5 years

• A minimum credit score of 680 (with preference for scores of 720 or higher)

• Relevant professional credentials, such as being a licensed Realtor, General Contractor, or Professional Engineer

If the purchase price exceeds the "as-is" value determined by our appraisal or in-house valuation, the advance will be limited to the lower value.

Your exit strategy also plays a role in the initial advance. For properties intended for sale, we typically look for a projected gross margin of at least 30% and a minimum profit of $15,000. For rental conversions or refinance scenarios, a post-rehab DSCR of at least 1.1 is required. Additionally, projects located in rural areas may require additional experience and could result in a lower initial advance.

Experience-Based Tiers

We evaluate your experience through a tiered system, which is based on the verifiable history of your projects:

Initial Advance by Tier

Adjustments to the Initial Advance

Adjustments may be applied based on specific risk factors:

These adjustments are designed to account for additional risks and ensure that your project is properly funded.

Rehab Scope Classification & Eligibility

• Your eligible rehab scopes depend on your Experience Tier and the Rehab Classification. To manage risk, we advise focusing on lower‑scope, “cosmetic” rehabs that wrap up quickly.

Eligibility Based on Rehab Scope

Your ability to finance different rehab scopes depends on your experience tier:

LTARV Limits (Loan-to-After-Repair Value)

LTFC Limits (Loan-to-Full-Cost)

For projects with an extensive rehab scope, where the rehab budget exceeds the purchase price or "as-is" value, we use the Loan-to-Full-Cost (LTFC) measure. For example, an LTFC of 85% means we will fund 85% of the total project cost, and you will contribute the remaining 15%.

Example 1: No Experience

• Purchase Price: $100,000

• Tier: 1 (No verified projects)

• Credit Score: 695

• Rehab Budget: $24,000

• ARV: $150,000

• Initial Advance: $75,000 (75%)

• Construction Holdback: $24,000

• Total Loan Amount: $99,000

• LTARV: 66%

• LTFC: 79.8%

• Interest Accrual: Full accrual

  Example 2: No Experience, Excellent Credit

• Purchase Price: $100,000

• Tier: 1

• Credit Score: 750

• Rehab Budget: $24,000

• ARV: $150,000

• Initial Advance: $80,000 (80%)

• Construction Holdback: $24,000

• Total Loan Amount: $104,000

• LTARV: 69.3%

• LTFC: 83.9%

• Interest Accrual: As funds are disbursed

  Example 3: With 5 Verified Projects

• Purchase Price: $100,000

• Tier: 4 (5 projects)

• Credit Score: 750

• Rehab Budget: $20,000

• ARV: $150,000

• Initial Advance: $90,000 (90%)

• Construction Holdback: $20,000

• Total Loan Amount: $110,000

• LTARV: 73.3%

• LTFC: 91.7%

• Interest Accrual: As funds are disbursed

These practical examples illustrate how the initial advance, total loan amount, and other financial figures change based on experience and credit score

Refinancing Using "As-Is" Value Instead of Cost Basis

Our standard underwriting process is based on your cost basis (the purchase price plus any sunk costs), ensuring that you retain “skin in the game.” However, if you own a well-established property in Colorado with an “as-is” value that exceeds your cost basis—and you need financing for renovations—we may consider leveraging the higher "as-is" value. To qualify, the following conditions apply:

• The property must be livable, at least in C4 condition, and free from major structural or safety issues.

• You must have owned the property for at least three years.

• If you’re paying off an existing loan, the lender cannot be a bridge or construction lender, and there should be no default interest, late fees, or extension charges involved.

• Your credit score must be a minimum of 680.

• You should be in Experience Tier 3 or higher, meaning you've completed at least four similar, verifiable rehab projects.

• You need to provide clear evidence that the property's current value is higher than what you’ve invested, supported by recent comparable sales in the neighborhood.

• Your scenario should be reasonable, such as if you rented the property for a few years, the tenants just moved out, and you plan to renovate and sell.

Transactions Involving Wholesalers and Price Increases

If you acquire a property through a wholesaler, the assignment fee or double-close price run-up can sometimes be financed, as long as it does not exceed 20% of the wholesaler’s original purchase price. Any amount above that threshold will need to be covered out of pocket. Here's an example:

• A-B Contract (from owner/wholesaler): $150,000

• B-C Contract (assignment fee): $30,000

• As-Is Value: $180,000

• Value Basis for Initial Advance: $170,000

Guidelines for wholesaler transactions in Colorado include:

• Assignment fees or price increases can be financed up to 20% of the purchase price.

• Transactions must be conducted at arm’s length, and full contract documentation is required.

• Finder or referral fees are not eligible for financing.

Colorado Construction Holdback

The construction holdback is released based on draw requests tied to verified progress on your renovation. If you decide to self-fund the repairs, you can opt out of the holdback entirely. For loans of $100,000 or more, undrawn funds do not accrue interest ("as disbursed" method).

Draw Guidelines:

Appraisal & Valuation Requirements

For Colorado bridge loans, a property valuation is mandatory. Depending on your deal’s specifics, we’ll request either a third‑party interior appraisal, a third‑party exterior appraisal, or an in‑house valuation.

In-House Valuation Guidelines

If you meet specific criteria, we may allow an in-house valuation instead of a traditional third-party appraisal. The following requirements apply for properties in Colorado:

Even if you meet these criteria, we may still request a formal interior or exterior appraisal depending on the specifics of your deal. That decision is made at our discretion.

When Exterior Appraisals Are Accepted in Colorado

An exterior-only appraisal is allowed for certain property acquisitions in Colorado, including:

• Real estate owned (REO) transactions

• Properties bought through foreclosure auctions

• Sheriff’s sales

• Online auction purchases

• Bankruptcy-related property sales

These appraisals must be no older than 120 days from your closing date. If the report is between 120 and 179 days old, a recertification will be required to proceed.

When a Full Interior Appraisal Is Required

If your scenario doesn’t meet the conditions for either an in-house or exterior valuation, you’ll need a full interior appraisal. The appraisal requirements by property type in Colorado are as follows:

Unless you're transferring an existing appraisal, we’ll order your appraisal through one of our trusted appraisal management companies (AMCs). You will be responsible for paying the AMC invoice. If payment is delayed, your loan file will be placed on hold until the payment is settled.

Transferring an Existing Appraisal

We may accept an appraisal you’ve already commissioned, provided it meets all of the following conditions:

• The appraisal was ordered through a pre-approved AMC

• It is no older than 180 days at the time of your closing

• If the report is between 120–179 days old, it must be recertified

• The original lender must send us:

  • A signed transfer letter confirming compliance with Appraiser Independence Requirements (AIR)

  • The full PDF appraisal report

  • The XML file version of the appraisal

  • A copy of the paid invoice proving the appraisal has been settled

Meeting all these requirements helps to avoid delays and keeps your loan moving forward.

Scenario: Stabilized Bridge Loan in Colorado

For properties in excellent condition (C4 or better) with minimal deferred repairs, we can fund up to 75% of the as-is value without requiring a full rehab draw. This "stabilized" loan product is perfect if the property is ready for immediate sale or rental.

Criteria

Key Loan Details for Colorado

*For loans over $1M, additional guidelines apply.

Extensions

Bridge loans are designed to be short-term financing options (typically 12 to 24 months). If your project isn't finished by the original term, you can extend the loan, though extensions come with additional fees and interest. To minimize the need for extensions, focus on:

• Working with experienced general contractors familiar with Colorado’s unique challenges.

• Keeping your rehab scope manageable and efficient.

• Securing immediate access to your property (avoid delays with lingering tenants or complex eviction processes).

• Having a dual exit strategy—plan to sell or refinance depending on current market conditions.

Extension Limits

Extension Fee Schedule

Extensions require confirmation that your builder’s risk insurance remains in effect throughout the extended period.

Ineligible Property Types

We do not fund projects involving:

• Mixed-use developments

• Multifamily properties with 5 or more units

• Condotels and co-ops

• Mobile or manufactured homes

• Commercial properties

• Cabins/log homes (unless designed and modernized)

• Properties subject to active oil/gas leases

• Working farms, ranches, or orchards

• Vacation or seasonal rentals

• Properties accessible solely via unpaved or dirt roads

Exception Scenarios

We may accommodate exceptional circumstances on a case-by-case basis, including:

• Guarantor credit scores between 660 and 679

• Leasehold or ground rent arrangements

• Single-family properties with 500 to 699 SQFT

• 2–4 unit properties with any unit between 400 and 499 SQFT

• Situations where the initial advance is based on an “as-is” value that exceeds the cost basis

• Non-arms-length transactions

• Financing of interest payments

Borrower & Guarantor Requirements

To qualify for a Colorado bridge loan, please note the following:

Verifying Liquidity

To ensure you're financially prepared for your project, we require that you—or one or more guarantors—have enough liquid assets to cover both your estimated cash to close and at least 25% of your rehab budget.

Acceptable Liquid Assets Include:

• Personal bank accounts

• Business accounts held in the borrowing entity's name

• Business accounts in other entities (you’ll need to share the operating agreement)

• Personal brokerage accounts

• Brokerage accounts tied to the borrowing entity

• Retirement accounts in your name (we’ll count 50% of the balance due to withdrawal restrictions)

For Colorado Bridge Loans: Credit & Background Requirements

• If 3 credit scores are returned on trimerge report, we use the middle score (2nd highest).
• If 2 credit scores are returned on trimerge report, we use the lowest score.
• If no mortgage tradelines (credit report or private loan verification of mortages, we require 6 months of interest reserves.
• If less than 5 tradelines on credit report, we we require 6 months of interest reserves.
• If bankruptcy on background, discharge date must be greater than 4 years from our settlement date.
• If foreclosure on background, completion date must be greater than 4 years from our settlement date.
• If bankruptcy or foreclosure between 4 years and 7 years from settlement date, we will require a minimum of 3 months of interest reserves.
• If late mortgage payments in past 12 months, we will require LOE and may not be eligible subject to loan committee discretion.
• If past due balances on mortgage and non-mortgage tradelines (i.e. HELOC, HELOAN, credit card) must be paid in full prior to funding.
• If involuntary liens or judgments on the background (i.e. tax lien, child support) must be paid in full prior to funding.
• If pending civil lawsuits, LOE is required and subject to the loan committee's discretion.
• If pending criminal lawsuits, not eligible for funding.
• If financial crime on the background, not eligible for funding.
• If serious crime on the background, not eligible for funding.
• If repeat crime on background, LOE required and subject to loan committee discretion.

Interest Reserves

Prepaid interest held in escrow to cover accrued interest before your first payment.

Financed Interest Payments

Rather than paying interest monthly, you can capitalize it into your payoff.

For example:

• Loan: $100 000 at 12 % annual

• Term: 9 months → Accrued interest = $100 000 × 12 %÷12 × 9 = $9 000

• Payoff statement shows:

  • Unpaid principal: $100 000

  • Unpaid interest: $9 000

Property Sourcing Guidelines

• New Colorado markets: General Contractor agreement or LOE if no GC needed

• Wholesale deals, prior price jumps, non‑arms‑length sales: additional documentation and review

• Condos, conversions, major rehabs: architect/engineer sign‑off or building permits

• Submission package: purchase contract, settlement statement, payoff letters (if any), track record, and entity formation docs

Bridge Loan Insurance Requirements

Builders‑Risk (Fix‑and‑Flip) coverage to protect the dwelling and liability throughout rehab.

Coverages & Limits

Policy Details

• AM Best rating: A‑VIII or better

• Form: Special (all‑risk)

• Deductible: $1 000–$5 000

• Lender’s role: Named mortgagee & additional insured

• No exclusions: Windstorm, hail, or named storms

• Cancellation: 30‑day notice

💡 Pro tip: Upon closing, install smoke detectors, secure locks, and add cameras. These measures satisfy policy terms and help prevent denied claims.

Frequently Asked Questions

What Regions Do We Serve in Colorado?

OfferMarket exclusively funds bridge loans for properties across Colorado. Our expertise spans key cities like Denver, Colorado Springs, and Boulder, as well as rural areas and more remote mountain communities.

Can I Hold Multiple Bridge Loans Simultaneously?

Yes, many of our Colorado clients manage multiple bridge loans concurrently. However, if we believe that your liquidity or project pace could be overstretched, we will provide advice on managing risk to ensure your long-term success.

Are Bridge Loans Considered Commercial?

Yes, since bridge loans are provided to your business entity (LLC or Corporation), they are classified as commercial, business-purpose loans.

What Is the Minimum Loan Amount?

The minimum loan amount available is $25,000.

Which Property Types Are Eligible?

We finance non-owner-occupied residential properties with 1–4 units, including:

• Single-family homes

• Duplexes, triplexes, and quadplexes

• Townhomes and warrantable condominiums

Properties with 5 or more units or large multifamily complexes, as well as non-residential commercial properties, are not eligible under this program.

How Do You Calculate LTV?

For our bridge loans, LTV (Loan-to-Value) typically refers to LTARV (Loan-to-After-Repair Value). Your initial advance is based on the lower of the “as-is” value and the contract purchase price, while LTARV is calculated by dividing the total loan amount by the property’s estimated market value after renovations.

What Are the Credit & Experience Requirements?

A minimum FICO score of 680 is required, with borrowers scoring between 660–679 considered on a case-by-case basis. While prior experience is not mandatory, completing verifiable rehab projects can increase your leverage within our tiered system.

Does Being a Wholesaler Count Toward Experience?

No, wholesaling does not count as verifiable experience, as the financial responsibility for the renovation was not assumed by the wholesaler.

What Documentation Is Required?

Our streamlined Loan File system requires the following documentation for both purchase and refinance transactions:

Purchase Transaction Requirements:

Refinance Transactions:

Are There Special Guidelines for Loans Over $1M?

Glossary of Key Terms

Get Your Instant Colorado Bridge Loan Quote

OfferMarket Capital LLC is proud to serve the Colorado real estate market with specialized bridge loans and DSCR financing for 1–4 unit residential properties. Our mission is to help you build lasting wealth in Colorado, and we’re eager to partner with you on your next project.

Every month, thousands of Colorado investors benefit from our free membership, which provides:

• Access to exclusive private lending solutions

• Competitive insurance rate shopping

• Off-market property opportunities

• Actionable market insights

Are you ready to take your Colorado real estate investments to the next level? Contact us today to receive your instant bridge loan quote and start your journey toward financial success in Colorado!

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