Illinois Bridge Loan Program

Last Updated: April 24, 2025

At OfferMarket, we are dedicated to helping Illinois real estate investors grow their wealth and achieve their investment goals. Whether you're flipping houses in Chicago, acquiring rentals in Springfield, or rehabbing properties in Peoria, we’re here to fuel your success with streamlined financing solutions.

Our platform offers a complete toolkit to support your real estate ventures:

💰 Flexible private lending solutions
☂️ Competitive insurance rate shopping
🏚️ Access to exclusive off-market properties

Through our Illinois Bridge Loan Program, you can secure fast, reliable funding to purchase and improve 1-4 unit residential investment properties across the Prairie State.

Whether your strategy is to renovate and resell for a profit or to hold and refinance into a DSCR loan, OfferMarket is here to be your trusted capital partner every step of the way.

Understanding Bridge Loans: Your Flexible Financing Solution

A bridge loan is a short-term financing tool that helps investors cover the gap between purchase and permanent financing. It’s the go-to choice for many Illinois investors seeking quick, adaptable funding without the red tape of traditional lending.

Common Ways Illinois Investors Use Bridge Loans

• Purchase and renovate a fixer-upper: Acquire distressed properties that need work without draining your own cash reserves.

• Refinance a property bought with cash to fund the rehab: If you snapped up a deal quickly in cash, we can help you access the capital needed for renovations.

• Refinance an existing loan to complete a project: Free up funds to finish your rehab, repay an initial lender, or improve project cash flow.

• Purchase a property to sell as-is: Lock in below-market deals and resell without lifting a hammer.

• Tap into equity on a cash purchase without rehab plans: Use your equity to fuel your next Illinois investment opportunity.

• Refinance completed rehabs while preparing to sell or rent: Extend your timeline while maximizing your return.

You may hear terms like "hard money loan" or "fix and flip loan" — these are often used interchangeably with bridge loans in the real estate investing world.

How the OfferMarket Illinois Bridge Loan Works

Each bridge loan we offer includes two primary components:

Initial Advance:

The portion of the loan designated for your property purchase, disbursed directly to the title company at closing.

Construction Holdback:

The funds reserved for your rehab budget, released to you through draw requests as work progresses.

Our bridge loans are built for flexibility. Whether you need just purchase funding, only a rehab budget, or both — we tailor the loan to match your project's needs.

Many of our Illinois clients leverage both components to maximize their buying power and minimize out-of-pocket expenses. However, some prefer to use their own funds for renovations or may not plan to rehab at all — and that works too. The beauty of this program is that it adjusts to your strategy.

Illinois Bridge Loan Program Guidelines

Project Eligibility

At OfferMarket, your success is our success. That’s why we emphasize smart risk management as the foundation of every loan we fund. With a default rate of less than 0.5% across all loans originated, we’re proud to lead the way in dependable private lending.

Taking on complex rehab projects without the right experience or capital cushion can put investors in a tough spot — particularly during market slowdowns or periods of economic uncertainty. Heavy and extensive renovation projects often face delays, cost overruns, and shifting conditions that can derail even the best-laid plans.

Our role is not just to lend capital — we act as your partner, advisor, and guide. We’re here to help you navigate the Illinois market safely and effectively, so you can scale your investment portfolio with confidence.

Initial Advance

Your initial advance — the loan amount toward your property purchase — is calculated based on your experience level and project specifics. Here’s how we evaluate your deal:

• Ownership history: Number of investment properties owned in the last 24 months.

• Track record: Number of similar rehab projects successfully completed in the past 5 years.

• Credit strength: Minimum credit score of 680, with preference for 720+ for the best leverage terms.

• Professional advantage: Licensed Realtors, General Contractors, and Professional Engineers may qualify for enhanced leverage options.

Important Considerations:

• Purchase Price vs. Valuation: If the purchase price exceeds our valuation of the property's current "As Is" condition, we base the advance on that valuation, not the contract price.

• Exit Strategy Impact:

  • If your plan is to flip for resale, we require at least a 30% projected gross margin and a minimum profit of $15,000.

  • If your strategy is to refinance and hold, we look for a minimum 1.1 DSCR after repairs.

• Rural Properties: For rural-designated properties, initial advances may be reduced, and a minimum experience level of Tier 3 (3+ projects completed) is required.

Experience Tiers

Initial Advance by Experience Tier

Adjustments To Your Initial Advance

Rehab Scope Classifications

Not all renovations are created equal — and your loan structure reflects that. Here’s how we define your project’s scope of work:

What’s a “lopsided deal”?
This is when the property’s As Is value or purchase price is lower than the rehab budget itself — a situation that carries higher execution risk.

Rehab Scope Eligibility

We prioritize safe, successful project outcomes by matching eligible rehab scopes with your experience level. Here’s how your experience tier influences your eligibility:

Focus on light to moderate rehabs if you’re newer to the game. Cosmetic flips and straightforward rehabs reduce complexity and help you scale safely.

Maximum Loan-To-ARV (LTARV) By Scope and Experience

Your loan-to-after-repair value (LTARV) is capped according to both your experience tier and the rehab scope. This keeps your leverage aligned with project complexity.

Loan-To-Full-Cost (LTFC) Limits for Extensive Rehabs

When your rehab budget exceeds your purchase price (Extensive classification), we apply LTFC limits to ensure you maintain adequate skin in the game. LTFC represents the percentage of total project costs (purchase price + rehab) we’re willing to finance.

Example Scenarios

Example 1: New Investor, Limited Experience

• Purchase Price: $100,000

• Rehab Budget: $24,000

• ARV: $150,000

• Tier: 1 (No experience)

• Credit Score: 695

• Initial Advance: $75,000 (75%)

• Construction Holdback: $24,000

• Total Loan: $99,000

• LTARV: 66%

• LTFC: 79.8%

• Interest Accrual: Full loan amount (Full Boat)

Example 2: New Investor, Excellent Credit

• Purchase Price: $100,000

• Rehab Budget: $24,000

• ARV: $150,000

• Tier: 1 (No experience)

• Credit Score: 750

• Initial Advance: $80,000 (80%)

• Construction Holdback: $24,000

• Total Loan: $104,000

• LTARV: 69.33%

• LTFC: 83.9%

• Interest Accrual: Based on funds disbursed (As Disbursed)

Example 3: Experienced Investor (Tier 4)

• Purchase Price: $100,000

• Rehab Budget: $20,000

• ARV: $150,000

• Tier: 4 (5+ verifiable completed projects)

• Credit Score: 750

• Initial Advance: $90,000 (90%)

• Construction Holdback: $20,000

• Total Loan: $110,000

• LTARV: 73.33%

• LTFC: 91.67%

• Interest Accrual: As Disbursed

Refinance With As Is Value Instead of Cost Basis

At OfferMarket, our typical lending approach is grounded in your cost basis — meaning the combined total of your purchase price and any capital already invested in the property. This approach ensures that you, the investor, maintain a meaningful equity stake in the deal, reinforcing strong alignment between borrower and lender.

However, there are situations where your property’s current market value (“As Is” value) has outpaced your original investment. In these refinance scenarios, we may consider structuring your initial advance based on the As Is value — provided certain conditions are met to ensure project stability and borrower qualification.

When Refinancing Off As Is Value Is an Option

If your Illinois investment property is seasoned, stable, and demonstrates a higher market value than your original purchase plus improvements, we’re open to leveraging that equity. To qualify for this approach, your deal must meet these criteria:

✅ Property Condition:

• Must be habitable (C4 condition or better).

• Cannot be in major disrepair.

✅ Seasoning Period:

• The property must have at least 3 years of ownership history.

✅ Payoff Requirements:

• The existing loan being paid off must not be from a bridge or construction lender.

• No defaults, late fees, extension fees, or similar penalties on the current loan.

✅ Credit Standards:

• Minimum FICO score of 680.

✅ Experience Level:

• Must be Tier 3 or higher (minimum of 4 successfully completed rehab projects).

✅ Market Support:

• Solid comparables (comps) in the neighborhood must support the As Is value exceeding your cost basis.

✅ Valid Scenario:

• Example: Property was rented for several years, tenants recently vacated, and now the asset requires updates before being listed for sale.

Guidelines for Wholesaler Transactions and Price Run-Ups

In refinance cases that involve a wholesaler assignment or double-close markup, OfferMarket has clear guidelines to ensure fair valuation:

📌 Example Scenario:

• Original A-B contract price: $100,000

• Assignment fee / price run-up: $25,000

• As Is appraised value: $125,000

• Value basis for initial advance: Capped at $120,000 (not the full $125,000 due to the 20% limit on markup)

Construction Holdback for Refinance Projects

If your refinance includes a renovation component, your rehab funds will be held in construction holdback and released through a draw process as you complete work on the property.

Construction Draw Guidelines:

If you have enough liquidity to cover rehab expenses on your own, you can opt to forgo the construction holdback portion of your loan.

No interest is charged on undrawn rehab funds for loans of $100,000 or more — we only accrue interest on disbursed amounts ("As Disbursed" interest accrual).

Property Valuation Requirements

A reliable valuation is mandatory for all OfferMarket bridge loans, including refinances. Depending on your project specifics, we may require one of the following:

In-House Valuation

Note: OfferMarket may still request an appraisal even if in-house valuation guidelines are met.

Exterior Appraisal

Exterior appraisals — sometimes called “drive-by” appraisals — focus on the external condition of the property and comparable sales. This type of valuation is acceptable only in the following situations:

• Bank-owned (REO) sales

• Foreclosure auctions

• Sheriff’s sales

• Online property auctions

• Bankruptcy-related sales

Timing is critical:

• Appraisal must be no older than 120 days from your loan settlement date.

• If your appraisal is between 120 and 179 days old, we require a recertification to confirm the valuation remains valid.

Interior Appraisal Guidelines

For most transactions that do not qualify for an exterior appraisal, we require a comprehensive interior inspection. This appraisal type provides a detailed analysis of the property’s interior condition, renovations needed, and after-repair value (ARV).

We’ll handle the ordering of your appraisal through one of our trusted appraisal management companies (AMC). You’ll simply be responsible for paying the AMC’s invoice before your loan can proceed.

Important: Loan files with unpaid appraisal invoices will be placed on HOLD status until payment is confirmed.

Appraisal Transfers

Already have a recent appraisal from another lender? In some cases, we may accept your existing report — but only if these conditions are fully met:

Appraisal Transfer Criteria:

• The appraisal was ordered via an approved appraisal management company (AMC).

• The report is no more than 180 days old at the time of closing.

• For appraisals between 120 and 179 days old, a recertification of value is required.

• The transferring lender must provide all of the following documentation:

  • A signed transfer letter including this certification:
    “Lender certifies that the Appraisal was ordered and processed in compliance with the Appraiser Independence Requirements (AIR).”

  • The complete appraisal report in PDF and XML formats.

  • The original paid invoice for the appraisal.

Without full compliance with these transfer requirements, we will be unable to accept the appraisal, and a new appraisal will need to be ordered through our process.

Illinois Stabilized Bridge Loan Program

For real estate investors across Illinois who are working with properties that are already in solid condition and ready to rent or sell, OfferMarket’s Stabilized Bridge Loan offers a streamlined financing option. This program is specifically designed for stabilized assets — properties without deferred maintenance — allowing you to borrow against the current "As Is" value without the need for additional rehab.

Program Guidelines At A GlanceExtension Options: Flexibility If You Need More Time

While bridge loans are meant to be short-term (typically 12 to 24 months), we understand that sometimes timelines shift. If needed, you may request an extension — but keep in mind that extensions come with added costs and should be used sparingly.

Key Loan Details

Illinois Bridge Loan Extensions

Our Illinois bridge loans are designed as short-term financing solutions — typically between 12 to 24 months, with most investors successfully exiting their loans well before maturity. While extensions are available, we recommend viewing them as a backup plan rather than part of your core strategy.

Why? Because extending your loan will increase your carrying costs through added fees and interest. Plus, if the loan isn’t repaid within the maximum allowable timeframe, it could result in foreclosure.

How to Avoid Needing an Extension

To keep your project on track and avoid unnecessary extensions, stay alert to these common risk factors:

• Partnering with contractors who lack strong experience or verified references

• Taking on overly ambitious rehab projects without matching liquidity or skillset

• Investing in markets known for slow zoning, permitting, or inspections

• Acquiring properties with tenants still in place (inheritance of leases or holdovers requiring eviction)

• Failing to plan for dual exit strategies (i.e. both resale and refinance options)

Proactively managing these issues reduces the chance of project delays and helps keep your financing costs predictable.

Extension Limits and Timelines

If your project timeline extends beyond the original loan term, we offer the option to request an extension — up to 50% of your original loan term.

Extensions may be requested in 3-month or 6-month increments, depending on your needs and circumstances.

Extension Fee Schedule

Extension fees will be added directly to your loan payoff statement. You must also verify that your builders risk insurance coverage remains active through the full extension period before approval is granted.

Property Types Not Eligible for This Program

To maintain quality control and manage risk, we do not fund the following property types under this loan program:

• Mixed-use properties

• Multifamily buildings with 5 or more units

• Condotels and co-ops

• Mobile or manufactured homes

• Commercial properties of any kind

• Cabins, log homes, or unique/exotic structures

• Properties with oil or gas leases

• Operating farms, ranches, or orchards

• Vacation rentals or seasonal-use properties

• Homes located on unpaved or dirt roads

Exceptions

In certain scenarios, your loan request may still be considered but will require extra underwriting scrutiny:

• Guarantor credit score between 660–679

• Leasehold (ground rent) arrangements

• Single-family properties between 500–699 SQFT

• 2-4 unit properties with one or more units between 400–499 SQFT

• Initial advances based on As Is value exceeding cost basis

• Non-arms-length transactions (related-party purchases)

• Requests for financed interest payments instead of monthly interest payments

Borrower and Guarantor Eligibility

Here’s what we look for when qualifying borrowers and guarantors for our Illinois bridge loans:

Verifying Liquidity

Before your Illinois bridge loan is approved, OfferMarket requires that you, the guarantor, demonstrate adequate liquidity. We want to ensure you have the financial cushion to cover closing costs and unexpected hiccups during your project.

Liquidity Requirement Formula:

You must have liquid assets equal to:

Cash to Close + 25% of Your Rehab Budget

These funds must be under the control of at least one guarantor on the loan.

✅ Eligible Liquid Assets Include:

• Personal bank accounts

• Business bank accounts (from your LLC or corporation)

• Business accounts in other entities you control (with proof via operating agreements)

• Personal brokerage accounts

• Brokerage accounts in your borrowing entity's name

• Brokerage accounts tied to other business entities (with ownership verification)

• Personal retirement accounts (valued at 50% of their balance due to restrictions)

A business bank account is recommended but not required. Verified funds do not need to be moved prior to closing, except for the amount due at settlement.

Credit and Background Checks: What We Look For

We conduct thorough credit and background evaluations to ensure borrower integrity and mitigate risk.

📊 Credit Score Rules:

• If 3 scores are available (Tri-Merge), we use the middle score

• If only 2 scores are returned, we go with the lower of the two

🚩 Conditions That Trigger Additional Requirements:

Interest Reserves

Interest reserves are pre-collected payments held in escrow and applied to your monthly interest until they run out — helping smooth your early cash flow.

Financed Interest Payments

Want to preserve liquidity during your rehab? You may qualify to have interest added to your payoff rather than paid monthly. This option — called financed interest payments — can help you avoid maxing out credit cards or draining reserves.

Example:

Property Sourcing and Documentation Requirements

To move efficiently through underwriting, your loan file must be complete and accurate — especially for Illinois investors working in new markets or unconventional deal structures.

Required Items:

• Purchase contracts and settlement statements

• Payoff letters (if applicable)

• Track record of past projects

• Corporate formation documents (Articles of Organization, Operating Agreement, W-9)

• Appraisal and detailed scope of work

• General Contractor agreement or Letter of Explanation (if no GC)

• Additional documentation for:

  • Wholesale deals

  • Large assignment fees

  • Non-arms-length transactions

  • Condo conversions or significant renovations (may require engineer or architect letters)

Bridge Loan Insurance Guidelines

Bridge loans require a specialized insurance policy — commonly known as Builders Risk or Fix and Flip Insurance — that covers vacant, under-renovation, or high-risk properties.

🔐 Required Coverages:

Policy Details:

💡 Pro Tip: Upon taking possession of the property, immediately install smoke detectors, door locks, and security cameras. These simple steps can help prevent insurance claims from being denied later.

Frequently Asked Questions (FAQ)

What states does OfferMarket fund bridge loans?

OfferMarket offers bridge loan financing across most U.S. states, including Illinois. Whether you're investing locally in Chicago, Springfield, Peoria, or any other Illinois market, we are here to support your real estate projects with dependable funding.

The following is a complete list of states where OfferMarket operates:

In states where a business purpose lending license is required (such as NMLS licensing) or where OfferMarket does not directly lend, we operate as a rate shopping service and refer your loan request to a qualified lending partner licensed in that state.

Can I have more than one bridge loan at a time?

Yes. It is common for OfferMarket clients to manage multiple bridge loans simultaneously. However, our number one priority is your financial health and risk management. If we determine that your current liquidity, experience level, or project execution pace does not support additional funding, we will raise these concerns and work collaboratively with you to ensure responsible lending and protect your success.

Are bridge loans considered commercial loans?

Yes. OfferMarket bridge loans are categorized as commercial business-purpose loans. These loans are extended to your business entity (such as an LLC or Corporation) and are not considered personal or consumer loans. They are strictly for investment purposes, not for owner-occupied or primary residence use.

What is the minimum loan amount?

The minimum loan amount for an OfferMarket bridge loan is $25,000.

Which property types are eligible for financing?

OfferMarket provides funding for non-owner occupied 1–4 unit residential properties. Eligible property types include:

Note: While mixed-use and larger multifamily deals are not eligible under this particular program, they may be eligible through separate financing solutions available at OfferMarket.

How is Loan-to-Value (LTV) calculated?

At OfferMarket, we use two primary metrics for evaluating leverage:

For initial advance calculations, we base the loan amount on the lower of the contract purchase price or the current As Is value determined by an appraisal or in-house valuation.

What are the credit requirements?

The standard minimum credit score requirement is 680 FICO. Borrowers with scores between 660 and 679 may still qualify on an exception basis, but additional requirements may apply (such as interest reserves or lower leverage).

We evaluate the credit score of each member of the borrowing entity who will be personally guaranteeing the loan. Credit scores of non-guarantor members are not considered.

Are there experience requirements for bridge loans?

While experience is not required, having prior rehab project experience allows us to offer greater leverage and more favorable terms. Your experience is assessed through the number of verifiable, completed projects with rehab scopes similar to or greater than the project for which you are requesting funding.

Experience is documented in the Track Record section of your Loan File. Our underwriting team will review supporting materials, such as settlement statements or operating agreements, to confirm your involvement in previous projects.

important: Acting solely as a wholesaler does not count toward your experience level because wholesalers are not responsible for completing renovations.

What documentation is required for loan approval?

To streamline processing and expedite funding, OfferMarket uses a digital Loan File system that securely collects the necessary documentation.

Purchase Transaction Documentation:

Refinance Transaction Documentation:

Are there special requirements for loans over $1 million?

Yes. Loans above $1 million (up to the $2 million program maximum) are subject to enhanced underwriting guidelines:

Glossary of Key Terms

Get Your Instant Bridge Loan Quote

OfferMarket Capital LLC, our private lending division, specializes in financing 1-4 unit residential real estate investment properties. Whether your goal is to flip, rent, or refinance, we offer bridge loans and DSCR loans designed to help you build wealth through real estate.

Thousands of real estate investors use OfferMarket every month and enjoy these benefits:

• Private lending solutions tailored to your projects

• Insurance rate shopping to help you save on coverage

• Access to exclusive off-market investment properties

• Market insights to inform your investment decisions

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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

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