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Connecticut Bridge Loan Program

Last Updated: April 18, 2025

At OfferMarket, our mission is to empower real estate investors to succeed in Connecticut’s dynamic market by providing innovative financing solutions and expert guidance. We offer:

• Private capital lending
• Tailored insurance rate comparisons
• Exclusive access to off‑market properties

Our Bridge Loan Program delivers rapid, dependable, and competitively priced funding for acquiring and enhancing 1–4 unit residential properties throughout Connecticut. Whether your plan is to execute a fix‑and‑flip or secure a long‑term rental investment, we are here to support you at every stage.

What Is a Bridge Loan?

A bridge loan is a short‑term financing tool that enables you to act swiftly while transitioning to permanent funding. In Connecticut, investors use bridge loans to:

• Purchase and rehabilitate a distressed property without exhausting personal funds
• Refinance an all‑cash acquisition to free up capital for renovations
• Replace an existing loan on a property needing further improvement
• Acquire a property “as‑is” to execute a quick flip with minimal work
• Extract equity from a cash purchase to finance the next project
• Swap out a loan after major repairs when additional time is needed for sale or refinancing

These loans are often referred to as “hard money” or “fix‑and‑flip” loans in the Connecticut market.

How It Works

A typical bridge loan comprises two main components:

Initial Advance: The primary amount disbursed at closing via the title company, generally covering most or all of your purchase cost.
Construction Holdback: A set amount reserved for your renovation budget, released incrementally as you achieve specified rehab milestones.

You may opt to use both components or rely solely on the Initial Advance if you choose to self-finance improvements. Once renovations are complete, you can either sell the property for profit or retain it as a rental—often refinancing through a DSCR (Debt Service Coverage Ratio) loan—based on current Connecticut market conditions.

Fix and Flip Loan Components, Cost Basis = Purchase Price + Rehab Budget, Total Loan Amount = Initial Advance + Construction Holdback, Down Payment, ARV

Who Uses Bridge Loans?

House Flippers: Investors who acquire properties below market value, renovate them, and sell for a profit.
Buy-and-Hold Investors: Those executing the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy.
Hybrid Investors: Individuals who flip some properties while keeping others as long‑term rentals to adapt to market trends.

Bridge Loan Program Guidelines

Criteria Guideline
Loan Amount (Minimum) $25,000
Loan Amount (Maximum) $2,000,000
ARV (Minimum) $100,000
Experience None required
Minimum Credit Score 680
Borrowing Entity LLC or Corporation
Initial Advance Up to 90%
Construction Holdback Up to 100%
LTARV (Max) 75%
Interest Rate Instant quote available
Origination Fee 1.5 to 2 points
Term 12 to 24 months
Points Out None
Prepayment Penalty None
Structure Interest‑only with balloon payment
Recourse Full recourse (minimum 51% ownership required)
Exit Strategy: Sale Minimum 30% ROI
Exit Strategy: Refinance Minimum 1.1 DSCR post‑rehab
Valuation Appraisal or in‑house evaluation
Minimum SqFt SFR: 700+; 2–4 unit: 500+ per unit; Condo: 500+
Maximum Acreage 5
Interest Accrual Under $100K: full accrual; $100K+: as disbursed
Advanced Draws At lender’s discretion
Minimum Down Payment $10,000

Project Eligibility

At OfferMarket, we’re committed to helping you succeed while protecting your investment portfolio. With a loan default rate of less than 0.5%, we take pride in responsible lending practices—and we partner closely with our clients to keep it that way.

In Connecticut, high-risk real estate projects—especially those involving major renovations or structural issues—are more susceptible to delays, budget overruns, and shifting market conditions. These risks are amplified by local zoning regulations, aging housing stock, and seasonal weather impacts across the state. That’s why we do more than just fund your deal—we act as your strategic partner and risk management advisor, guiding you with honest, data-backed expectations at every stage.

Initial Advance Guidelines

The available Initial Advance is determined by your deal specifics and investment experience. We consider:

• The number of properties purchased in the past 24 months
• Completed transactions over the last five years
• A minimum credit score of 680 (720+ is ideal)
• Professional qualifications (e.g., Realtor, General Contractor, or Professional Engineer)

When calculating your Initial Advance, we base it on the property’s current “as‑is” value; if the agreed purchase price exceeds either the appraisal or our internal valuation, the lower value applies. We also assess your exit strategy—whether planning a sale with at least a 30% profit margin and $15,000 in net profit, or a refinance achieving at least a 1.1 DSCR post‑rehab. For properties in more rural Connecticut areas, a record of at least three successful projects may be required for enhanced leverage.

Experience-Based Tiers

Tier Verified Track Record
1 0
2 1–2
3 3–4
4 5–9
5 10+

Initial Advance Percentages by Tier

Tier Advance (% of Purchase Price)
1 80% (up to 85% possible with stellar credit or liquidity)
2 85%
3 85%
4 90%
5 90%

Adjustments to Advance Percentages

Situation Adjustment
Credit score under 720 -5%
Complete gut renovation -5%
Limited familiarity with local market -5%
Licensed Realtor credential Up to +5%
Licensed General Contractor credential Up to +10%
Licensed Professional Engineer Up to +10%
Rural property (requires Tier 3+) -20%

Rehab Scope Definitions

Scope Definition
Light Renovations costing less than 25% of the purchase price
Moderate Renovation expenses between 25% and 49.99% of purchase price
Heavy Renovations amounting to 50%–99.99% of the purchase price
Extensive Renovation costs equal to or exceeding 100% of the purchase price

Classification of Rehab Scopes

Your eligibility to finance various rehab scopes is determined by your experience tier:

Tier 1 2 3 4
Experience 0 1-2 3-4 5-9
Light Eligible Eligible Eligible Eligible
Moderate Ineligible Eligible Eligible Eligible
Heavy Ineligible Eligible Eligible Eligible
Extensive Ineligible Ineligible Eligible Eligible

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

Tier 1 2 3 4
Experience 0 1-2 3-4 5-9
Light 70% 70% 75% 75%
Moderate Ineligible 70% 75% 75%<
Heavy Ineligible 70% 75% 75%<
Extensive Ineligible Ineligible 70% 70%

LTFC Guidelines (Loan-to-Full-Cost)

For extensive rehab projects—where the renovation budget exceeds the purchase price—we finance a percentage of the total project cost. For example, an 85% LTFC means we lend 85% of the combined purchase price and rehab expenses, with the remainder provided by you.
(LTFC does not apply to Light, Moderate, or Heavy rehab scopes.)

Tier 1 2 3 4 5
Experience 0 1-2 3-4 5-9 10+
Light N/A N/A N/A N/A N/A
Moderate Ineligible N/A N/A N/A< N/A
Heavy Ineligible N/A N/A N/A< N/A
Extensive Ineligible Ineligible 85% 90% 90%

Case Studies and Examples

Example: No Experience

  • Purchase Price: $120,000

  • Tier: 1 (0 completed deals)

  • Credit Score: 690

  • Rehab Budget: $28,000

  • ARV: $190,000

  • Initial Advance: $90,000 (75% of purchase price)

  • Construction Holdback: $28,000

  • Total Loan Amount: $118,000

  • LTARV: ~62.1%

  • LTFC: ~79.7%

Example: No Experience, Superb Credit

  • Purchase Price: $130,000

  • Tier: 1 (0 completed deals)

  • Credit Score: 750

  • Rehab Budget: $33,000

  • ARV: $210,000

  • Initial Advance: $104,000 (80% of purchase price)

  • Construction Holdback: $33,000

  • Total Loan Amount: $137,000

  • LTARV: ~65.2%

  • LTFC: ~84.0%

Example: Five Completed Deals

  • Purchase Price: $155,000

  • Tier: 4 (5 completed deals)

  • Credit Score: 745

  • Rehab Budget: $38,000

  • ARV: $285,000

  • Initial Advance: $139,500 (90% of purchase price)

  • Construction Holdback: $38,000

  • Total Loan Amount: $177,500

  • LTARV: ~62.3%

  • LTFC: (Calculated similarly)

Refinancing with As‑Is Valuation Instead of Cost Basis Initial Advance

Typically, our calculations are based on the cost basis (purchase price plus documented expenses). However, if you have owned a Connecticut property long enough for its market value to notably exceed these costs, you may qualify for refinancing based on the higher as‑is value provided that:

• The property is in at least C4 condition
• Ownership has exceeded three years
• The current lender is not imposing default interest or financing the initial construction
• The guarantor’s credit score is at least 680
• The project qualifies as Tier 3 or above
• Recent local comps support the increased valuation
• The overall situation is justified (for example, a stable rental ready for a major remodel or sale)

Wholesaler Transactions & Price Adjustments

For transactions involving wholesalers, we may finance the assignment fee provided it does not exceed 20% of the wholesaler’s original contract price. Any fee above this cap is your responsibility.

Example:

  • A‑B Contract (Seller to Wholesaler): $80,000

  • B‑C Contract (Wholesaler to Investor): $25,000

  • As‑Is Value: $110,000

  • Basis for Initial Advance: $98,000 (fees beyond 20% of $80K must be covered by you)

All wholesaler deals must be arm’s‑length transactions with clear contract documentation and proper operating agreements. Referral or finder’s fees are not financed.

Connecticut Construction Holdback

In Connecticut, construction holdback funds are released based on draw requests tied to verified renovation progress. If you prefer to self-finance your rehab, you may opt out of the construction holdback entirely. For loans over $100,000, undrawn holdback funds do not accrue interest—this is known as the "as disbursed" method.

Draw Guidelines

Criteria Guideline
Minimum Draw Amount None
Maximum Draw Amount Up to 100% of the remaining holdback
Number of Draws Allowed Unlimited
Materials Delivered (Not Installed) Up to 50% coverage (receipt/invoice required)
Inspection App-based self-service inspection
Turnaround Time 0 to 2 business days
Draw Fee $270
Wire Fee $30

Appraisal & Valuation Requirements in Connecticut

A property valuation is mandatory for every OfferMarket bridge loan. Depending on your transaction, we’ll require one of the following:

  • A third‑party interior appraisal

  • A third‑party exterior appraisal

  • An in‑house valuation

In-House Valuation Criteria

If you qualify, we may allow an in-house valuation rather than a traditional third-party appraisal. To be eligible in Connecticut, you must meet all of the following:

Requirement Eligibility
Property Type Single-family, duplex, triplex, or fourplex
Experience Tier Tier 4 or above
Minimum Credit Score 720
Rural Location Not permitted
New Market Entry Not permitted
Maximum LTARV 70%

Even if you meet these standards, we may still request a formal appraisal based on your specific deal.

When Exterior-Only Appraisals Are Accepted

For Connecticut properties, exterior-only appraisals are acceptable for:

  • Real estate owned (REO) acquisitions

  • Properties bought through foreclosure auctions

  • Sheriff’s sales

  • Online auction wins

  • Bankruptcy-related property purchases

The appraisal must be dated within 120 days of closing. Reports between 120–179 days must be recertified to qualify.

When a Full Interior Appraisal Is Required

If your project doesn't qualify for in-house or exterior appraisal, a full interior appraisal is required. Below are the required forms:

Property Type Required Appraisal Forms
Single-Family 1004 + 1007 ARV (non-gridded, including As-Is value)
2–4 Unit 1025 + 216 ARV (non-gridded, including As-Is value)
Condominium 1073 + 1007 ARV (non-gridded, including As-Is value)

Unless you’re transferring a qualifying appraisal, we will order the appraisal through one of our trusted AMCs. You're responsible for paying the AMC directly. Delays in payment will pause your loan process.

Transferring an Existing Appraisal

We may accept an appraisal you’ve already ordered if it meets the following:

  • Ordered via a pre-approved AMC

  • Dated within 180 days of your closing

  • Recertified if between 120–179 days old

  • Accompanied by:

    • A signed transfer letter confirming AIR compliance

    • The full PDF report

    • The XML file of the appraisal

Meeting these requirements ensures a smooth underwriting process and helps avoid unnecessary delays.

Scenario: Stabilized Bridge Loan in Connecticut

For investment properties in excellent condition (C4 or better) with minimal deferred maintenance, OfferMarket can provide up to 75% of the as-is value—without requiring a rehab draw. This “stabilized” bridge loan product is ideal for Connecticut investors purchasing properties ready for resale or immediate lease.

Property Type Required Appraisal Forms
Single-Family 1004 + 1007 ARV (non-gridded, including As-Is value)
2–4 Unit 1025 + 216 ARV (non-gridded, including As-Is value)
Condominium 1073 + 1007 ARV (non-gridded, including As-Is value)

Key Loan Details for Connecticut

Criteria Details
Loan Amount $25,000 to $2,000,000*
Units per Property 1 – 4
Eligible Properties Non-owner occupied:Single-family homes, townhomes,duplex to fourplex, warrantable condos
Minimum Size SFR: ≥700 SQFT2–4 Unit/Condo: ≥500 SQFT per unit
Max Acreage 5 acres
Loan-to-Cost (LTC) Up to 90% purchase + up to 100% rehab
Loan-to-ARV (LTARV) Up to 75%
Down Payment Minimum $10,000 (if purchase < $100K)
Standard Term 12 months
Extensions Up to 50% of original term (fees apply)
Points 1.5 – 2 points (min $2,000)
Prepay Penalty None
Occupancy Business use only – non-owner occupied
Transaction Types Arm’s-length purchases and refinances
Geographic Focus Connecticut statewide
Amortization Interest-only with balloon at maturity
Interest Accrual Under $100K: full loan amountOver $100K: disbursed funds only

Loans over $1M are subject to additional requirements.

Extensions: Staying on Schedule in Connecticut

Bridge loans are short-term by design—typically 12 to 24 months. If your project requires more time, you can apply for an extension, but additional fees will apply. To avoid delays:

  • Work with Connecticut-based contractors who understand the regional permitting processes

  • Plan realistic timelines for inspections and tenant transitions

  • Ensure the property is immediately accessible (no legal or occupancy delays)

  • Always build a backup strategy: resale or refinance

Extension Limits

Original Term Max Extension
12 months 6 months
18 months 9 months
24 months 12 months

Extension Fee Schedule

Extension Period Fee
3 months (1st request) 1% of total loan amount
3 months (2nd request) 1.5% of total loan amount
6 months (1st request) 2.5% of total loan amount

Builder’s risk insurance must be active through the extended period.

Ineligible Property Types in Connecticut

We do not fund the following:

  • Mixed-use buildings

  • Multifamily (5+ units)

  • Condotels or co-ops

  • Mobile or manufactured homes

  • Commercial properties

  • Log cabins or unmodernized rustic homes

  • Oil/gas lease encumbered properties

  • Active farms, ranches, orchards

  • Seasonal/vacation rentals

  • Properties only accessible by unpaved roads

Case-by-Case Exceptions

We may consider exceptions for:

  • Guarantor credit scores between 660–679

  • Leasehold or ground rent agreements

  • SFRs with 500–699 SQFT

  • 2–4 unit properties with at least one unit between 400–499 SQFT

  • High as-is value relative to cost basis

  • Non-arm’s-length deals

  • Financed interest reserves

Borrower & Guarantor Requirements for Connecticut

Item Requirement / Eligibility
Borrowing Entities LLC or Corporation only (no nonprofits)
Eligible Borrowers U.S. Citizens, Permanent Residents, qualified Foreign Nationals
Foreign Nationals Valid passport & U.S. visa (excluding student/travel unless under VWP)
Credit Score Minimum 680 (exceptions for 660–679)
Credit Report Tri-merge report no older than 120 days
Liquidity Liquid assets = cash to close + 25% of rehab budget
Guaranty Structure Purchases: 51% of entity must guaranteeCash-outs: 100% must guaranteeFull recourse required
Net Worth Combined guarantor net worth = at least 50% of loan amount

Verifying Liquidity

To proceed smoothly, borrowers/guarantors must show proof of liquid funds.

Acceptable Liquid Assets Include:

  • Personal or business bank accounts

  • Brokerage accounts (personal or business-related)

  • Retirement accounts (50% of balance considered)

You’re not required to move funds—just show you control them.

Credit and Background Review

We assess credit history to ensure borrower reliability:

  • Tri-merge: Middle score (of 3) or lower score (of 2) used

  • No mortgage tradelines: 6 months of reserves required

  • Fewer than 5 tradelines: Same reserve rule applies

Additional Credit-Based Rules

Condition Guideline
Bankruptcy Discharged >4 years prior to closing
Foreclosure Settled >4 years ago
Recent Bankruptcy/FC 4–7 years ago: 3-month reserve required
Late Mortgage Payments LOE required; may result in denial
Past Due Balances Must be paid before closing
Liens/Judgments Must be settled in full
Pending Lawsuits LOE required; subject to review
Criminal Charges Financial crimes or open criminal cases are disqualifying

By staying organized, transparent, and financially prepared, you'll breeze through the Connecticut bridge loan process with OfferMarket as your trusted lending partner.

Interest Reserves & Financed Interest Payments

Interest Reserves

Interest reserves are funds held in escrow and applied to your monthly accrued interest. They help reduce the burden of out-of-pocket interest payments during the early project phase.

Scenario Required Reserve
Lender discretion (default) 0 months
Guarantor with FICO 700+ 1 month
Guarantor with FICO 660–699 3 months
Guarantor with FICO 660–699 + red flags 6 months

Financed Interest Payments

To help preserve your liquidity during renovations, you may choose to roll interest payments into the final payoff rather than paying monthly. Here’s how it works:

Example:

  • Loan amount: $100,000

  • Interest rate: 12%

  • Duration: 9 months

Calculation:

$100,000 × 12% ÷ 12 months × 9 months = $9,000 accrued interest

Payoff Summary:

Item Amount
Unpaid principal $100,000
Unpaid interest $9,000

Property Sourcing Guidelines
New Markets: May require a General Contractor agreement or justification if you’re self-managing.

  • Wholesale Deals: Chain-of-title, assignment docs, or sharp price increases must be explained.

  • Condos & Complex Projects: Engineering, architectural drawings, or permits may be needed.

Always submit complete documentation—purchase contracts, settlement statements, payoff letters, rehab history, and LLC formation records.

Insurance Requirements for Bridge Loans in Connecticut

Ensure your project is properly insured before closing. Our standard package (Builders Risk / Fix-and-Flip insurance) is designed for properties that are vacant, under renovation, or distressed.

Required Coverages

Coverage Type Limit Required?
Dwelling Replacement cost or full loan amount (no coinsurance allowed) Yes
Liability $1M per occurrence / $2M annual aggregate Yes
Builders Risk Included Yes
Flood Greater of $250K or loan balance (only if in FEMA flood zones) If applicable

Additional Insurance Conditions

Item Requirement
AM Best Rating A- or better (preferably A‑VIII or higher)
Policy Type Special form coverage
Deductible $1,000–$5,000
Lender Designation OfferMarket Capital LLC as Mortgagee & Insured
Cancellation Notice Minimum 30 days advance written notice
No Exclusions Must include wind, hail, and named storms

💡 Pro Tip: After taking possession in Connecticut, immediately install smoke detectors, secure all locks, and consider outdoor security cameras. These actions can support insurance claims and improve site safety.

Frequently Asked Questions Connecticut Bridge Loans

What Areas in Connecticut Do You Cover?

We fund bridge loans across the state—from Stamford to New Haven, Hartford to Norwich, and even rural towns that meet our criteria.

Can I Hold Multiple Loans at Once?

Yes, Connecticut investors often hold more than one active loan. We’ll assess your liquidity and experience to help you manage risk properly.

Are These Loans Considered Commercial?

Yes. All loans are business-purpose and issued to LLCs or corporations—making them commercial loans, even when secured by residential properties.

What’s the Minimum Loan Size?

$25,000 is the minimum financing amount.

What Property Types Are Eligible?

Eligible 1–4 unit, non-owner occupied properties include:

  • Single-family homes

  • Duplexes, triplexes, quadplexes

  • Warrantable condos

  • Townhomes

  • Planned unit developments (PUDs)

We do not finance 5+ unit multifamily, mixed-use, or commercial buildings under this program.

How Is LTV Calculated?

We focus on LTARV (Loan-to-After-Repair Value). Your initial advance is based on the lower of:

  • As-is appraised value

  • Contract purchase price

LTARV = Total Loan ÷ Estimated After-Repair Value

What Are the Credit & Experience Requirements?

  • Minimum FICO: 680 (660–679 considered on exception)

  • Experience: Not required, but documented projects improve your leverage tier

Does Wholesaling Count Toward Experience?

No. Wholesaling doesn’t count unless you took on financial and rehab responsibility.

What Documentation is Required?

For Purchase Transactions

Document Purpose
Purchase Contract Signed by buyer and seller
Credit Report Soft tri-merge for each guarantor
Background Report For all guarantors
Rehab Track Record Proof of past projects
ID Verification Passport, green card, or driver’s license
Business Documents Articles, Operating Agreement, Good Standing, W-9
Scope of Work Detailed budget used to estimate ARV
Appraisal Ordered via our link; uploaded upon completion
Bank Statements Two recent per guarantor (personal, business, or IRA)
Letter of Explanation If needed to clarify credit or large deposits

For Refinance Transactions

Document Purpose
Settlement Statement Fully signed, post-closing
Credit Report Soft tri-merge for all guarantors
Background Report Required
Rehab History Track record for each guarantor
ID Verification Government-issued ID
Entity Docs Operating Agreement, Articles, Certificate, W-9
Sunk Costs Summary of funds spent on rehab/holding costs
Scope of Work Detailed renovation budget
Appraisal Ordered via our system
Bank Statements 2 recent per guarantor
LOE If clarification is required

Special Rules for Loans Over $1 Million

Requirement Explanation
Experience At least 3 completed projects at similar value/scope
Comps 3+ closed sales within 2 miles in past 6 months
FICO 680+ with 5 tradelines reporting 24+ months
Rural Properties Not permitted (per CFPB, USDA, or appraiser designation)
Track Record Must be supported by verifiable rehab history

Glossary of Key Terms

Term Definition
ADU Accessory Dwelling Unit
Arms-Length Unrelated buyer/seller at fair market conditions
Non-Arms-Length Involves related parties or potential conflicts of interest
Initial Advance Funds wired at closing for the purchase
Construction Holdback Funds reserved for renovation, released per draw schedule
Interest Reserves Escrow funds covering initial interest accrual
LOE Letter of Explanation
LTC Loan ÷ (Purchase + Rehab)
LTFC Loan ÷ Full project cost (used for higher-risk rehabs)
LTV Loan ÷ As-is value
LTARV Loan ÷ After-repair value
As Disbursed Interest Interest charged only on released funds
Full Boat Interest Interest charged on the entire approved loan
Lopsided Deal Rehab cost heavily outweighs purchase price
GC Agreement General Contractor scope confirmation
DSCR Debt Service Coverage Ratio (Rent ÷ PITIA)

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