Iowa Bridge Loan Program

Criteria	Guideline
Loan amount (minimum)	$25,000
Loan amount (maximum)	$2,000,000
After-Repair Value (ARV) minimum	$100,000
Borrower experience	No prior experience required
Minimum credit score	680
Borrowing entity	LLC or Corporation only
Initial advance	Up to 90% of purchase price
Construction holdback	Up to 100% of rehab budget
Loan-to-ARV (LTARV) maximum	75%
Interest rate	Instant quote available
Origination fee	1.5 to 2 points
Loan term	12 to 24 months
Points out	None
Prepayment penalty	None
Structure	Interest-only with balloon payment
Recourse	Full recourse (51%+ of borrowing entity must guarantee)
Exit strategy (Sale)	Minimum 30% ROI required
Exit strategy (Refinance)	Minimum 1.1 DSCR after rehab completion
Valuation	Appraisal report or in-house valuation
Minimum property size	Single family: 700+ sq ft, 2-4 unit: 500+ sq ft per unit, Condo: 500+ sq ft
Maximum acreage	5 acres
Interest accrual	Loans under $100K: full loan amount; $100K+: as disbursed
Draw advances	Subject to lender discretion
Minimum down payment	$10,000

Tier	Verifiable experience
1	0
2	1 to 2
3	3 to 4
4	5 to 9
5	10+

Initial Advance by Tier

Your experience tier directly influences the percentage of the purchase price eligible for the initial advance. The table below outlines the maximum initial advance for each tier:

(*) An initial advance of up to 85% may be available on an exception basis for borrowers with outstanding credit profiles and strong liquidity.

Adjustments to Initial Advance

The following table lists the scenarios where your initial advance percentage may be adjusted either downward or upward, depending on specific borrower qualifications and project details:

Rehab scope classification

(*) A low purchase price "lopsided deal" is when the as-is value or purchase price is less than the rehab amount. See LTFC Limits section below for tier and LTFC limits.

Rehab scope eligibility

Your eligibility for a bridge loan in Iowa is determined by your experience tier and the classification of your rehab scope. Staying true to our commitment to responsible lending and risk management, we encourage our borrowers to focus on projects with lighter rehab scopes. These types of projects, often referred to as "cosmetic rehabs," tend to be completed more efficiently and with fewer complications.

LTARV Limits

Your maximum Loan-to-After-Repair Value (LTARV), sometimes referred to as ARLTV, is determined by your experience tier and your rehab scope classification. This approach ensures proper risk controls are maintained across varying levels of investor experience and project complexity.

LTFC Limits

LTFC, or Loan-to-Full-Cost, applies specifically to projects categorized as "Extensive" — meaning the rehab budget exceeds the purchase price or the as-is value of the property. LTFC helps maintain the borrower’s financial stake in higher-risk projects by capping the lender’s exposure.

An LTFC of 85% means the lender funds 85% of the total project cost (purchase price plus rehab budget), with the borrower covering the remaining 15%. This ensures borrowers maintain equity and accountability in high-execution-risk scenarios.

Example: No Experience

Purchase price: $100,000
Tier: 1 (zero similar verifiable rehab projects)
Credit score: 695
Renovation budget: $24,000
After-Repair Value (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 loan amount (full boat)

Example: No Experience, Excellent Credit

Purchase price: $100,000
Tier: 1 (zero similar verifiable rehab projects)
Credit score: 750
Renovation budget: $24,000
After-Repair Value (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 funds are disbursed

Example: 5 Experience

Purchase price: $100,000
Tier: 4 (five similar verifiable rehab projects)
Credit score: 750
Renovation budget: $20,000
After-Repair Value (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 funds are disbursed

Refinance using As Is value instead of Cost Basis for Initial Advance

Our standard underwriting process focuses on lending against your cost basis, which includes the purchase price and any capital already invested in the project. This approach ensures that you, the borrower, maintain meaningful equity — often referred to as "skin in the game" — throughout the transaction.

In certain refinance scenarios here in Iowa, where your property has seasoned and now holds a higher as-is market value than your total cost basis, we may consider lending based on the as-is value instead. This allows you to unlock equity for renovation while maintaining financial stability.

To qualify for this exception, the following criteria must be met:

• The property must be habitable, with a condition rating of C4 or better, and not in a state of disrepair.

• The property must have been owned for at least three years.

• The existing payoff lender must not be a bridge or construction lender, nor should the loan have default interest, extension fees, or late fees.

• The personal credit score of the guarantor must be at least 680.

• The borrower must fall within Experience Tier 3 or higher, requiring at least four similar completed projects.

• There must be solid support for the as-is value being higher than the cost basis, including comparable sales within the neighborhood.

• The refinance request should align with a logical scenario, such as a property that has been rented for three years, is now vacant, and requires renovation for resale.

Transactions involving wholesalers, price run-ups

For transactions involving wholesalers here in Iowa, where price markups between the original seller and wholesaler exist, we allow certain flexibility but maintain strict guidelines to ensure fairness and risk management.

If the transaction includes an assignment fee or double-close markup, we allow the price increase to be included in the value basis — but only if the markup does not exceed 20% of the purchase price between the wholesaler and the original seller (owner of record). Any price markup above this 20% threshold will not be considered in the financing calculation.

For example:

Wholesaler transaction guidelines

OfferMarket Iowa applies the following guidelines for transactions involving wholesalers:

• Assignment fees or double-close markups may be included in your cost basis, capped at 20% of the A-B purchase price.

• If the property was listed on the MLS, the assignment fee or markup may not be eligible for financing.

• Full chain of contracts and assignments must be provided (A-B, B-C agreements) along with the wholesaler's operating agreement.

• We will not fund finders fees or referral fees.

• The transaction must be arm’s length between all parties involved.

Construction Holdback

The construction holdback portion of your loan is provided through draw requests, reimbursing you for verified progress on your rehab scope of work. You can learn more about this process in our Draw Processing guidelines.

If you have enough available capital to fully cover the rehab with your own funds and prefer not to include a construction holdback as part of your loan structure, you have the option to proceed without one.

It’s important to note that for loan amounts of $100,000 or more, you will not be charged interest on any undrawn construction holdback funds. This is referred to as “as disbursed” interest accrual.

Appraisal and In-house valuation

Every OfferMarket Iowa bridge loan requires a valuation of the subject property. Depending on your specific deal scenario, this valuation may take the form of a third-party interior appraisal, a third-party exterior appraisal, or our in-house valuation process.

In-house valuation

Even for borrowers who meet these criteria, OfferMarket reserves the right to request either an interior or exterior appraisal at our sole discretion.

Exterior appraisal

Exterior appraisals are acceptable for the following scenarios:

• REO sale

• Foreclosure auction

• Sheriff’s sale

• Online auction

• Bankruptcy sale

The exterior appraisal must be dated within 120 days of your settlement date. If the appraisal is between 120 and 179 days old, a recertification is required.

Interior appraisal

In any case not covered by the exterior appraisal or in-house valuation guidelines, a full interior appraisal is required.

Unless there is an eligible appraisal transfer, OfferMarket handles the appraisal order through an appraisal management company (AMC). You are responsible for paying the AMC's invoice. Loan applications with unpaid appraisal invoices will remain on hold until payment is confirmed.

Appraisal transfer

If your appraisal was not ordered through OfferMarket but meets certain standards, it may be transferred for use with your loan. To qualify:

• The appraisal must have been ordered through an approved AMC.

• The appraisal must be less than 180 days old at closing.

• If the appraisal is between 120 and 179 days old, it must be re-certified.

• The original lender must provide a signed transfer letter confirming compliance with the Appraiser Independence Requirements (AIR).

• The appraisal report (PDF and XML) and the original paid invoice must be provided.

Scenario: Stabilized Bridge Loan

If your Iowa property does not have deferred maintenance issues and holds an appraisal condition rating of C4 or better, we offer financing based on the as-is value of the property. This arrangement is known as a stabilized bridge loan, as the property is considered stabilized and ready for either rental or resale.

Key Loan Details

Extensions

Bridge loans are designed as a short-term solution — typically 12 to 24 months — with most loans being paid off well before reaching the end of the term. Extending your bridge loan is not the ideal path and should be avoided whenever possible, as extensions add costs through fees, additional interest, and increase the risk of foreclosure if the loan is not paid off within the extension period.

To avoid the need for an extension on your Iowa investment project, it’s important to steer clear of scenarios such as working with contractors who have limited experience, overcommitting to aggressive rehab plans that exceed your capability, operating in markets with slow permitting processes, or investing in properties where immediate possession is not guaranteed. Properties with tenant holdovers, long lease terms, or eviction needs can also lead to unexpected delays. Additionally, projects lacking a dual exit strategy to either sell or refinance tend to face higher risks of requiring loan extensions.

By controlling for these factors, you can significantly reduce the likelihood of delays and the need for an extension.

Extension Limits

If your Iowa project has not been completed by the end of your original loan term, extensions are available for up to 50% of the initial loan term. Extensions can be requested in either 3-month or 6-month increments, according to the fee structure outlined in the next section.

Extension Terms and Fees

Should you require additional time to complete your Iowa real estate project, extension fees will be added directly to your payoff statement. The following schedule outlines the costs associated with requesting an extension:

Extension Prerequisites

Before we can approve your extension request, you must confirm that your builder's risk insurance policy remains active and fully in effect for the entire duration of the extension period.

Ineligible Property Types

The following property types do not qualify for financing under the Iowa Bridge Loan Program:

• Mixed-use properties

• 5+ unit multifamily properties

• Condotels (condominium hotels)

• Co-operative housing (co-ops)

• Mobile or manufactured homes

• Commercial real estate of any kind

• Cabins or log homes

• Properties with active oil or gas leases

• Operating farms, ranches, or orchards

• Vacation rentals or seasonal properties

• Unique, exotic, or luxury properties

• Properties located on unpaved or dirt roads

Exception Scenarios

While we maintain strict lending criteria, certain scenarios may be reviewed on a case-by-case basis. Exceptions may be considered under the following conditions:

• Guarantor credit scores between 660 and 679

• Leasehold (ground rent) situations

• Single-family properties between 500 and 699 square feet

• 2-4 unit properties where one or more units are between 400 and 499 square feet

• Initial advance based on as-is value exceeding cost basis

• Non-arm’s length transactions (must be reviewed carefully)

• Financing of interest payments

• Any deal that falls outside these boundaries is subject to loan committee review and approval.

Borrower and Guarantor Requirements

Liquidity verification

To promote sound financial management and safeguard your Iowa investment project, we require verification that guarantors maintain sufficient liquidity. Specifically, you must demonstrate available funds to cover the estimated cash to close plus 25% of the total rehab budget.

Qualified liquid assets include:

• Bank accounts held personally, by the borrowing entity, or by other affiliated entities (subject to verification of operating agreements where applicable).

• Brokerage accounts (personal or business).

• Retirement accounts held personally (subject to a 50% reduction for qualification purposes).

There is no requirement to move funds into a specific account, aside from the cash to close, which must be confirmed on your settlement statement and wired to the title company or attorney managing the closing.

Credit and Background Items

• If three credit scores are reported, we use the middle score.

• If only two credit scores are reported, the lower of the two is used.

• If no mortgage tradelines exist (either on the credit report or through private loan verification), we require six months of interest reserves.

• If fewer than five tradelines appear on the credit report, six months of interest reserves will also be required.

• If bankruptcy is present on the background report, the discharge date must be at least four years prior to the settlement date.

• If foreclosure is present, the completion date must also be at least four years prior to the settlement date.

• If bankruptcy or foreclosure occurred between four and seven years before settlement, a minimum of three months of interest reserves is required.

• If there have been any late mortgage payments within the past twelve months, a letter of explanation (LOE) is required, and loan approval will be at the discretion of the loan committee.

• Any past due balances on mortgage accounts or non-mortgage tradelines (including HELOCs, HELOANs, or credit cards) must be paid in full prior to funding.

• Any involuntary liens or judgments, such as tax liens or child support obligations, must be fully satisfied prior to funding.

• If there are pending civil lawsuits, an LOE is required and eligibility will be subject to loan committee discretion.

• Pending criminal cases will disqualify the applicant.

• Any history of financial crimes will result in ineligibility.

• Serious criminal offenses will result in ineligibility.

• Repeat offenses may require an LOE and will be reviewed by the loan committee.

Interest Reserves

Interest reserves are collected at closing and held in escrow to cover interest payments during the early stages of the loan. These reserves are drawn down before you are required to make out-of-pocket interest payments.

Financed Interest Payments

To help preserve your liquidity and avoid putting unnecessary strain on your personal finances — such as racking up credit card debt during your rehab project — you may qualify for financed interest payments with OfferMarket Iowa. This option allows your interest payments to be added directly to your loan balance, rather than requiring monthly cash payments during the loan term.

Here’s how it works:

If your total loan amount is $100,000 with an interest rate of 12%, and you hold the loan for 9 months, the total accrued interest would be $9,000. Instead of paying this amount monthly, the unpaid interest accumulates and is added to your payoff amount at closing.

Example Payoff Statement:

• Unpaid principal balance: $100,000

• Accrued interest: $9,000

• Total payoff amount: $109,000

This structure allows you to focus your available cash on completing your project successfully, without the pressure of immediate interest payments.

Property Sourcing Guidelines

When sourcing properties for your Iowa investment deals, the following guidelines apply to ensure transparency, proper documentation, and alignment with our lending criteria:

• If the project is located in a new market (where you have not previously completed similar projects), you must provide a signed general contractor agreement or a letter explaining why a GC is not required.

• Properties that have experienced rapid price increases, wholesale transactions, or non-arm’s length arrangements will require extra documentation and a higher level of scrutiny.

• For condos, property conversions, and projects requiring significant structural changes, architectural or engineering letters and/or permits may be required.

• Your loan submission should include all relevant documentation, including purchase contracts, settlement statements, payoff letters (if applicable), your track record, and formation documents for the borrowing entity.

Bridge Loan Insurance Guidelines

Protecting your Iowa real estate investment means safeguarding both the property itself and your personal liability exposure. As part of the bridge loan process, you are required to maintain Builder’s Risk insurance, also known as Fix and Flip insurance — a specialized policy designed for properties undergoing rehab, in poor condition, or vacant.

Coverage Details

💡 Pro tip for Iowa investors: Install smoke detectors, proper locks, and security cameras immediately after taking ownership of the property. This not only helps ensure safety and security but also keeps you compliant with insurance requirements and protects your claim eligibility.

Frequently Asked Questions About Iowa Bridge Loan Program

What states does OfferMarket fund bridge loans?

Our Iowa bridge loan program is available alongside many other states across the U.S., including:

Arizona*
Alabama
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Mississippi
Missouri
Minnesota*
Montana
Nebraska
Nevada*
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota*
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota*
Tennessee
Texas
Utah
Vermont*
Virginia
Washington
Washington D.C.
West Virginia
Wisconsin
Wyoming

(*) In certain states, including where NMLS licensing is required or where we do not directly lend, OfferMarket acts as a rate shopping service, connecting you with approved licensed capital providers.

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

Yes. Many Iowa investors and clients across the country operate multiple bridge loans simultaneously. However, we maintain a strong focus on risk management — if we believe that your liquidity or project pace could be negatively impacted by additional loans, we will raise that concern and work with you to maintain safe, sustainable progress.

Are bridge loans considered commercial?

Yes, bridge loans are classified as business-purpose commercial loans because they are extended to your business entity (LLC or Corporation) and are not meant for personal or consumer use.

What is the minimum loan amount?

The minimum loan amount for the OfferMarket Iowa Bridge Loan Program is $25,000.

Which property types are eligible?

We finance non-owner occupied 1–4 unit residential properties in Iowa, including:

• Single-family residences

• Townhomes

• Small multifamily properties (2–4 units)

• Warrantable condominiums

Please note:
2–4 unit mixed-use properties, 5–9 unit mixed-use or multifamily properties, and larger commercial properties are not eligible under this program. However, these asset types may qualify under different loan programs available at OfferMarket.

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

For our Iowa bridge loans, LTV typically refers to Loan-to-After-Repair Value (LTARV). This is calculated by dividing the total loan amount (initial advance plus any construction holdback) by the projected after-repair value, as determined by an appraisal or in-house valuation.

In refinance scenarios, the initial advance is based on the lower of the as-is appraised value or your cost basis (purchase price plus incurred expenses). Our process ensures the proper balance between leverage and equity preservation.

What are the credit requirements?

A minimum FICO score of 680 is required. Borrowers with scores between 660 and 679 may be considered under certain exception scenarios. We evaluate the credit scores of all members of your borrowing entity who will serve as personal guarantors. Members without a guaranty role are not subject to credit review.

What are the experience requirements?

No prior experience is required to qualify for the Iowa bridge loan program. However, greater experience unlocks access to higher leverage through our experience-based tier system, which adjusts initial advances and project eligibility according to your completed, verifiable rehab projects.

Does wholesaling count as experience?

Wholesaling a deal does not count toward your experience score. Only direct involvement in the financial and operational completion of rehab projects qualifies toward your experience tier.

What documentation is required?

Our Loan File system is designed to streamline your application process while ensuring we have all necessary documentation to review and approve your loan. Documents that are applicable across future projects will remain securely stored in your OfferMarket account for convenience.

Purchase Transaction Requirements

Purchase Transaction Requirements: Refinance

Are there special requirements for loans over $1 million?

Yes. Loans over $1 million (up to the program maximum of $2 million) follow enhanced guidelines:

• Minimum of 3 completed rehab projects at similar or greater price points strongly preferred

• Sufficient market liquidity, confirmed by at least three comparable sales within a two-mile radius, sold on the MLS within the last six months

• Minimum FICO score of 680 with at least five tradelines showing a 24-month history

• Not eligible if the property carries a rural designation as defined by CFPB, USDA, or appraisal report

• Completed Track Record documentation required for each guarantor

Glossary of Key Terms

Get Your Iowa Instant Bridge Loan Quote

OfferMarket Capital LLC is a trusted private lender serving Iowa real estate investors with flexible bridge loans and DSCR loans. Our mission is to support your wealth-building journey through smart financing solutions designed to fit your project needs.

Thousands of real estate investors nationwide, including many here in Iowa, turn to OfferMarket every month. Membership is free and provides access to:

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Thousands of real estate investors get value from OfferMarket every month. Membership is entirely free and includes the following benefits:

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