Delaware Bridge Loan Program

Last Updated: April 21, 2025

At OfferMarket, our mission is to empower you to build wealth through real estate in Delaware. To guide your investment journey in the First State, we deliver a vertically integrated platform:

• Private lending
• Insurance rate shopping
• Off‑market Delaware deals

Our Delaware Bridge Loan program is designed to provide fast, dependable, and cost-effective financing for acquiring and improving 1– 4 unit residential investment properties across New Castle, Kent, and Sussex counties.

Whether you plan to flip for profit or hold and refinance into a DSCR loan, we’d love to partner with you and contribute to your success.

Let’s review the Delaware OfferMarket Bridge Loan Program!

What is a bridge loan?

A bridge loan is a short‑term financing solution that carries you from purchase to permanent funding.

Bridge loan scenarios

Across Delaware’s real estate market—from historic rowhomes in Wilmington to beachfront cottages in Rehoboth—bridge loans power investors through a variety of strategies:

• Acquire & Rehab a Fixer‑Upper
  Snap up a vacant townhouse in Newark that needs modern finishes, then tap a bridge loan to cover both purchase and renovation without draining your savings.

• Cash‑Close, Then Renovate
  You spot an off‑market duplex in Dover; the seller insists on a cash closing. Use a bridge loan to close fast, then cash out on Day 30 to fund your rehab.

• Pay Off Existing Debt & Finish the Job
  Your original hard‑money lender in Sussex County is due repayment, but your kitchen remodel isn’t done. A Delaware bridge loan lets you settle that debt and keep your renovation on track.

• Buy “As‑Is” for a Quick Profit
  Land that undervalued farmhouse outside Middletown and plan to flip it in its current state. A bridge loan delivers the purchase funds and frees up your own cash for your next deal.

• Unlock Equity For Your Next Purchase
  You in Rehoboth paid cash for a condo intending to sell. A bridge loan lets you tap into that equity—no rehab required—so you can chase your next opportunity without waiting for a resale.

• Extend a Completed Rehab
  You’ve already modernized that 4‑unit in New Castle, but market timing isn’t ideal. Use a bridge loan to refinance out of your original loan, give yourself more time, and choose the perfect exit.

In Delaware circles, these are often called “hard‑money loans” or “fix‑and‑flip loans,” terms investors and private lenders use interchangeably.

How it works

A bridge loan splits into two components:

• Purchase Advance – funds wired to closing for your acquisition. It goes towards the purchase amount

• Rehab Holdback – capital reserved for renovation, paid out on draw requests.

Delaware’s bridge loans give you total control over funding—pick the pieces you need:

• Purchase Advance Only: If you’re paying for renovations out of pocket or buying “as‑is,” skip the rehab holdback and fund only your acquisition.

• Construction Holdback Only: Already own the property? Tap up to 100% of your rehab budget without an upfront advance.

• Both Together: Most Delaware investors combine an initial advance and a holdback to maximize leverage and minimize cash outlay.

No matter your approach—funding just the buy, just the build, or both—you stay nimble. Some investors in Wilmington prefer a pure purchase advance so they can self‑manage renovations. Others in Lewes buy with cash and rely solely on a construction holdback for rehab. The choice is yours: the bridge loan bends to your plan.

Your exit path can pivot too. You might flip a Dover rowhome for quick profit or rent a Sussex County cottage and refinance into a long‑term DSCR loan. Market swings often shift strategy—BRRRR turns into a straight flip, or a planned flip becomes a hold‑and‑refinance. By targeting deals with both sale and refinance options, you keep risk in check and opportunity wide open.

Who uses bridge loans?

• Flip investors (“flippers”)

• Rental property investors

Learn about our Fix & Rent bundle—a combined bridge loan for purchase/rehab and a discounted DSCR refinance.

Many clients blend strategies, flipping some properties and renting others based on performance.

Bridge Loan Program Guidelines

Project Eligibility

Our goal in Delaware is to help you grow lasting wealth through smart property investments—so managing risk comes first. In our First State portfolio, fewer than 0.5% of all bridge loans have ever defaulted or gone to foreclosure. We take pride in delivering the industry’s lowest default rate and celebrating your successes.

Tackling a “heavy” or “extensive” rehab—whether it’s a full gut‐job in Wilmington’s East Side or an ADU addition outside Dover—carries the highest likelihood of delays, cost overruns, and market shifts. Even seasoned investors can face setbacks when taking on ambitious projects, especially during economic uncertainty. That’s why we work alongside you as advisor, risk manager, and capital provider—setting clear expectations so you can expand your Delaware portfolio with confidence.

Below, you’ll find our rehab–scope classification and eligibility guidelines. First, let’s look at how we calculate your Initial Advance:

Initial Advance

We determine your purchase funding by blending borrower credentials and deal factors:

• Track Record – Number of 1–4 unit properties you’ve owned in the past 24 months and similar rehab projects completed over the last 5 years, from townhomes in Newark to duplexes in Rehoboth.

• Credit Score – Minimum 680 across the borrowing entity; we prefer guarantors at 720 or higher.

• Professional Credentials – Realtors, licensed GCs, and Professional Engineers earn higher leverage.

If your contract’s purchase price exceeds our As‑Is valuation, we base your advance on the lower appraised As‑Is value. Your intended exit also shapes leverage:

• Flip Exit – Requires at least a 30% projected gross margin and $15,000 minimum profit.

• Rent & Refinance Exit – Requires a projected DSCR of 1.1 or greater after repairs.

For properties with a rural designation, initial advances are capped, and you’ll need at least Tier 3 experience.

Experience‑based Tiers

Initial Advance by Tier

85% available by exception for top credit/liquidity.

Adjustments to Purchase Advance

Rehab Scope Classification

Rehab Scope Eligibility

LTARV Limits

Loan to Full Cost (LTFC) for Extensive Rehabs

When your rehab budget exceeds either the purchase price or the property’s As‑Is value—think gut‑jobs on a Wilmington rowhome or a major addition on a Sussex County farmhouse—OfferMarket caps financing via Loan‑to‑Full‑Cost. An LTFC of 85 percent means we cover 85 percent of total project cost (purchase + rehab) while you invest the remaining 15 percent, keeping your “skin in the game” on higher‑risk jobs.

Examples: No Experience, Standard Rehab

• Purchase: $100 000

  • Rehab: $24 000

  • ARV: $150 000

  • Purchase Advance: 75 percent ($75 000)

  • Holdback: $24 000

  • Total Loan: $99 000

  • LTFC: 79.8 percent

  • Interest: Full‑boat

No Experience, Excellent Credit

• Purchase price: $100,000
  • Tier: 1 (0 similar verifiable experience)
  • 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: 69.33%
  • LTFC: 83.9%
  • Interest accrual: As disbursed

Five Projects’ Experience

• Purchase price: $100,000
  • Tier: 4 (5 similar verifiable experience)
  • 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: 73.33%
  • LTFC: 91.67%
  • Interest accrual: As disbursed

Refinance Using As‑Is Value for Your Initial Advance

Our standard underwriting is based on your cost basis—the sum of purchase price plus any sunk costs—so you maintain equity (“skin in the game”). However, when a property you’ve held for at least three years has an As‑Is market value exceeding your cost basis, you can refinance against that higher value and still complete renovations. To qualify, you must meet all of the following:

• Condition: Property must be habitable (condition rating C4 or better).

• Seasoning: Owned for at least 3 years.

• Prior Financing: Payoff lender cannot be a bridge/construction lender and must have no outstanding default interest, extension fees, or late fees.

• Credit: Minimum FICO score of 680.

• Experience: Tier 3 or above (at least four similar, verifiable rehab projects).

• Valuation Support: Recent comparable sales must substantiate As‑Is value > cost basis.

• Use Case: Renovation plan is credible—for example, a long‑leased property now vacant and prepped for market.

Wholesaler & Price Run‑Up Transactions

If you acquired via a wholesaler, you may include the assignment fee or price run‑up in your value basis, up to 20 percent of the original seller’s contract price. You bear any excess above that cap.

Example

• A‑B Contract (seller → wholesaler): $100,000

• B‑C Contract (wholesaler → you): $125,000 (includes $25,000 assignment fee)

• As‑Is Appraised Value: $125,000

• Value Basis for Advance: $120,000 (100,000 + 20% × 100,000)

Wholesaler Guidelines

• We may finance assignment fees or price run‑ups up to 20 percent of A‑B price.

• If the property was listed on the MLS, we reserve the right to exclude assignment fees.

• Full contract chain (A‑B and B‑C) and wholesaler’s operating agreement must be provided.

• Finder’s or referral fees are not eligible for financing.

• All transactions must be arms‑length.

Construction Holdback

Your rehab funds are held in escrow and released via draw requests as work is verified:

• Electing No Holdback: If you prefer to front all rehab costs, you can waive the holdback entirely.

• Interest on Undrawn Funds: Loans of $100,000 or more incur interest only on disbursed amounts (“As Disbursed” accrual).

  Draw Processing Guidelines

Appraisal & In‑House Valuation

Every bridge loan requires a property value opinion. Depending on circumstances, we may request:

1. In‑House Valuation

2. Third‑Party Exterior Appraisal

3. Third‑Party Interior Appraisal

In‑House Valuation Criteria

Even if you meet these criteria, we may still require a full exterior or interior appraisal at our discretion.

Exterior Appraisal

Accepted for transactions involving:

• REO sales

• Foreclosure auctions

• Sheriff’s sales

• Online auctions

• Bankruptcy sales

Appraisal must be dated within 120 days of your settlement. If it’s 120–179 days old, a recertification is required.

Interior Appraisal

Required for all other scenarios:

• We typically order the appraisal via our AMC and you pay the invoice.

• Loans with unpaid appraisal invoices will be placed on hold until payment is confirmed.

Appraisal Transfer

You may transfer an existing, AMC‑ordered appraisal if it meets all of the following:

• Ordered via an approved AMC.

• Less than 180 days old at our closing date.

• Recertified if 120–179 days old.

• Includes lender’s transfer letter certifying compliance with Appraiser Independence Requirements (AIR).

• PDF & XML appraisal reports.

• Proof of paid appraisal invoice.

With these guidelines, you can confidently leverage As‑Is valuation, structure your construction holdback, and navigate appraisal requirements—ensuring your refinance stays within sound underwriting practices while maximizing your funding potential.

Scenario: Stabilized Bridge Loan

For properties in Delaware with no deferred maintenance and an appraisal condition rating of C4 or better, we’ll underwrite on an As‑Is basis and finance up to 75 percent of the appraised As‑Is value. This “stabilized” option suits homes that are move‑in ready—perfect for landlords or investors planning a quick sale.

Key Loan Details

Extensions

Bridge loans are designed for brief terms—typically 12 to 24 months—and most are paid off well within a year. Extending a bridge loan should be a last resort, as it adds fees, extra interest, and increases the risk of foreclosure if the loan still isn’t repaid by the extension deadline.

To minimize the need for an extension, avoid projects that involve:

• General contractors lacking solid experience or references

• Rehab scopes that exceed your expertise or liquidity

• Markets with slow zoning, permitting, or inspection processes

• Properties you can’t access immediately (e.g., tenant holds or eviction required)

• Deals without a clear dual‑exit plan (sale vs. refinance)

Extension Limits

If repayment isn’t complete by your loan’s maturity, you may extend up to 50 percent of the original term. Extensions come in 3‑ or 6‑month increments.

Extension Terms & Fees

Extension fees are added to your payoff statement as follows:

Extension Prerequisites

Before approving any extension, we’ll need confirmation that your builder’s‑risk insurance remains active throughout the extended period.

Ineligible Property Types

The following property categories do not qualify for this bridge loan program:

• Mixed‑use buildings

• 5+ unit multifamily

• Condotels and co‑ops

• Mobile or manufactured homes

• Commercial properties

• Cabins or log homes

• Farms, ranches, orchards

• Properties with oil or gas leases

• Vacation or seasonal rentals

• Unique, exotic, or luxury estates

• Properties on unpaved or dirt roads

Exception Scenarios

Certain deals may qualify for special consideration:

• Guarantor FICO 660–679 (exception basis)

• Leasehold (ground‑rent) properties

• Single‑family 500–699 sq ft homes

• 2–4 unit properties with one unit 400–499 sq ft

• Initial advance based on As‑Is value exceeding cost basis

• Non arms‑length transactions

• Financed interest payments

Borrower & Guarantor Requirements

Liquidity Verification

We require guarantor(s) to hold liquid assets equal to the sum of your estimated cash‑to‑close plus 25 percent of your rehab budget. These assets must be under the control of one or more guarantors.

Eligible Liquid Assets

Important Information

• A dedicated business bank account is recommended for best practices but not mandatory.

• You only need to wire your cash‑to‑close; no other assets must be moved or transferred.

Credit & Background Requirements

Interest Reserves

Interest reserves are funds collected at closing and held in escrow to cover interest accrual before you begin making monthly interest payments from your bank account.

Financed Interest Payments

To protect your liquidity and credit score during rehab, you may finance interest instead of paying monthly. Accrued interest is added to your payoff.

Example:

• Loan amount: $100,000

• Interest rate: 12% per annum

• Term held: 9 months

• Accrued interest: $100,000 × 12% ÷ 12 × 9 = $9,000

Payoff Statement:

• Unpaid principal balance: $100,000

• Unpaid interest: $9,000

Property Sourcing Guidelines

When submitting a loan application, include:

• New‑market deals: GC agreement or LOE explaining why none is needed

• Wholesale or repriced properties: Documentation of prior sale price increases and full contract chain

• Major renovations: Architect or engineer letters (or permits) for condos, conversions, or high‑scope rehabs

• Core docs: Purchase contracts, settlement statements, payoff letters (if any), borrower track record, and entity formation documents

Bridge Loan Insurance Guidelines

Your property and personal liability must be insured under a Builders Risk (Fix & Flip) policy.

Coverages & Limits

Policy Specifications

Pro tip: Install smoke detectors, locks, and cameras on day one to meet policy requirements and avoid denied claims.

Frequently Asked Questions

What regions does OfferMarket serve in Delaware?
OfferMarket funds bridge loans statewide—New Castle County (Wilmington, Newark), Kent County (Dover), Sussex County and everywhere in between.

Can I do more than one bridge loan at a time?
Yes. Many clients hold multiple bridge loans. We’ll monitor your liquidity and project pace to help you manage risk.

Are bridge loans commercial?
Yes. They’re business‑purpose loans issued to your borrowing entity.

What is the minimum loan amount?
$25,000.

Which property types are eligible?
Non‑owner occupied 1–4 unit residential: single‑family, duplex, triplex, quad, townhomes, warrantable condos.

How do you calculate LTV?
We use Loan‑to‑After‑Repair‑Value (LTARV): (purchase advance + rehab holdback) ÷ after‑repair value. Purchase advance is based on the lower of contract price, prior closing price, or As‑Is appraisal value.

What are the credit requirements?
Minimum 680 FICO; 660–679 may qualify by exception. We review each guarantor’s score.

What are the experience requirements?
None required—experience unlocks higher leverage through our Tier system.

Does wholesaling count toward experience?
No. Only projects where you financed and oversaw actual rehab completion qualify.

What documentation is required?

Purchase Transaction Requirements

Refinance Transaction Requirements

Special Requirements for Loans Over $1 Million

Loans between $1 M and $2 M must also meet these enhanced guidelines:

Glossary of Key Terms

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