Massachusetts Bridge Loan Program

Last Updated: April 27, 2025

At OfferMarket, we’re dedicated to helping you grow wealth through smart real estate investments. To support your journey as a Massachusetts real estate investor, we provide a fully integrated platform featuring:

💰 Private lending
☂️ Insurance rate comparison
🏚️ Access to off-market properties

Our Massachusetts Bridge Loan program offers quick, reliable, and competitively priced funding to help you acquire and improve 1-4 unit residential investment properties across the Bay State.

Whether your plan is to flip the property for a return or hold and refinance into a DSCR loan, we’re excited at the chance to work alongside you and be a part of your success story.

Let’s take a closer look at the OfferMarket Massachusetts Bridge Loan Program!

What is a Bridge Loan?

A bridge loan is a short-term financing option designed to fill the gap until a longer-term funding solution is secured.

Common Use Cases for Massachusetts Bridge Loans

Among Massachusetts real estate investors, bridge loans are most frequently used in these scenarios:

• Purchasing and renovating outdated or distressed properties — perfect if you need funding for both acquisition and rehab without tying up your own capital.

• Refinancing a property bought with cash to fund the renovation — for example, when you've closed quickly on an off-market deal with cash but now need to pull out funds to complete the project.

• Refinancing an existing loan on a distressed property to finish renovations — maybe your private lender or hard money lender is due for repayment, but you still need time and capital to wrap up the rehab and exit via sale or refinance.

• Purchasing properties without renovation plans — like buying off-market homes below market value with the goal of reselling them AS IS for profit.

• Refinancing cash purchases with no intention to rehab — ideal when you acquired below market value and now want to access your equity for another investment opportunity.

• Refinancing an existing loan on a completed property with no rehab plans — perhaps the rehab is done, but you want additional time to sell or refinance.

In the Massachusetts investment community, bridge loans are also known as hard money loans or fix and flip loans — these terms are often used interchangeably by investors and lenders.

How It Works

Bridge loans consist of two main components:

1. Initial Advance — funds allocated toward the purchase price, wired directly to the title company at settlement.

2. Construction Holdback — funds earmarked for the renovation budget, released to you through draw reimbursements as work progresses.

Bridge loans are intentionally structured for flexibility. You may choose just the initial advance, only the construction holdback, or both — depending on your strategy and needs.

In many cases, Massachusetts investors use both the initial advance and the construction holdback to maximize leverage while minimizing their own cash outlay. However, some investors opt for just the initial advance if they prefer to handle rehab costs personally, or if no renovations are planned at all. Others purchase with cash and simply utilize a construction holdback to finance up to 100% of their rehab budget.

When it comes to Massachusetts bridge loans, flexibility is key — you get to tailor the loan structure to your project.

When securing a Massachusetts bridge loan, your exit plan typically falls into one of two categories:

• Flip the property for a profit, or

• Rent it out and refinance into a longer-term solution like a DSCR loan.

In the dynamic world of real estate, flexibility is often your best asset. Many investors adjust their exit strategy along the way as market conditions shift. Whether you’re aiming to flip for quick gains or pivoting toward rental cash flow, it’s okay to remain flexible — there’s no pressure to lock in your strategy too soon.

For instance, you might start a project planning to execute a BRRRR (Buy, Rehab, Rent, Refinance, Repeat) approach, only to discover that the local rental demand isn’t as strong as expected. In that case, selling the renovated property for a solid profit may offer the smarter path forward.

Conversely, maybe your original plan was to flip, but if the Massachusetts housing market cools, you decide to rent the property and refinance into a DSCR loan with a favorable prepayment structure — giving yourself the option to sell once the market rebounds.

The lesson? Choose projects that give you dual exit strategies — this helps reduce your risk and increases your flexibility in an ever-changing real estate landscape.

Who Uses Bridge Loans?

Massachusetts bridge loans are popular among:

• Fix and flip investors ("flippers") — those purchasing, renovating, and selling properties for profit.

• Rental property investors utilizing the BRRRR method — Buy, Rehab, Rent, Refinance, Repeat.

Explore our Fix and Rent bundle — combining a bridge loan for acquisition and renovation with a discounted DSCR loan for the refinance stage.

It’s worth noting that many successful real estate investors in Massachusetts embrace a hybrid approach. They might flip certain properties while holding onto others as rentals, depending on how each deal plays out. This kind of adaptability is a hallmark of experienced investors and a strategy we strongly support at OfferMarket.

Bridge Loan Program Guidelines

Project Eligibility

At OfferMarket, we’re passionate about helping Massachusetts investors grow wealth while managing risk responsibly. Our lending philosophy is built around partnering with you to ensure success — not just writing checks.

Here’s what sets us apart: fewer than 0.5% of all the loans we’ve originated have ever gone to foreclosure. We’re proud to maintain one of the lowest default rates in the private lending world.

However, we know from experience that projects with heavy rehab scopes — especially when taken on by less experienced investors — carry higher risk. Extensive renovations often face delays, budget overruns, and unexpected challenges, which can derail even the most seasoned operators. This risk is amplified during times of economic uncertainty.

Our mission as your Massachusetts bridge loan lender is to act as more than just a source of capital. We’re your deal partner, risk advisor, and financial backer. Clear expectations are the foundation of our approach, helping you safely and confidently expand your investment business.

Next, we’ll walk through how we classify rehab scopes and determine eligibility based on experience.

Initial Advance

The amount of your initial advance is carefully determined by both borrower-specific and deal-specific factors. Here’s what we consider:

• How many investment properties you’ve owned in the past 24 months.

• How many similar rehab projects you’ve successfully completed over the last 5 years.

• Your personal credit score — minimum required is 680, but we strongly prefer guarantors with 720+ credit.

If the purchase price exceeds our appraisal’s opinion of the As Is value, your initial advance will be based on the lower As Is value — not the contract price. This helps ensure responsible lending and protects your investment.

Impact of Exit Strategy on Initial Advance

• If selling the property:
  Minimum projected gross margin of 30% and a minimum profit of $15,000 are required.

• If renting and refinancing (or if flip projections fall short):
  The projected DSCR after repairs must be at least 1.1.

Pro tip: Use our Fix and Flip Calculator or DSCR Calculator to confidently evaluate your exit options.

If the property is located in a rural area, initial advance will be capped, and a minimum experience level of 3 is required.

Experience-Based Tiers

Initial Advance by Tier

The percentage of the purchase price that we’re able to finance (your initial advance) depends on your experience tier:

Borrowers in Tier 1 may qualify for up to 85% on an exception basis if they demonstrate excellent credit and liquidity.

Adjustments to Initial Advance

Several factors may lead to adjustments (positive or negative) to your initial advance percentage in Massachusetts:

Our approach allows Massachusetts investors to benefit from their expertise, certifications, and proven track record while ensuring that risk is properly managed across all projects.

Rehab Scope Classification

In lopsided deals where rehab costs outweigh the purchase price, Loan-To-Full-Cost (LTFC) limits will apply.

Rehab Scope Eligibility

Your experience tier determines which types of rehab projects you’re eligible to take on through our Massachusetts Bridge Loan program:

In line with our focus on smart investing, we encourage Massachusetts borrowers — especially those newer to real estate — to prioritize light or moderate rehab projects. These are often referred to as “cosmetic rehabs”, which tend to offer faster completion timelines and fewer surprises.

LTARV Limits

The Loan-to-After-Repair-Value (LTARV) ratio determines how much we can lend relative to your property’s projected post-rehab value. Your LTARV limit is based on your experience tier and the rehab scope of your project:

Our structured approach to LTARV helps ensure that Massachusetts investors aren’t over-leveraging on high-risk projects, especially those with larger or more complex rehab scopes.

LTFC Limits

In Massachusetts, for projects with an Extensive rehab scope (where the rehab budget exceeds the purchase price), we apply Loan-To-Full-Cost (LTFC) limits. This helps ensure that borrowers maintain equity (“skin in the game”) and promotes financial safety in higher-risk rehab scenarios.

For these higher execution risk projects, LTFC ensures that the investor contributes a meaningful portion of the total cost (purchase + rehab), keeping interests aligned.

Example: No Experience

Example: No Experience, Excellent Credit

Example: 5 Experience

Refinance Using As Is Value Instead of Cost Basis for Initial Advance

In some Massachusetts refinance scenarios, the As Is value of your property may exceed your original cost basis (purchase price plus any capital expenditures made to date). When that happens, we can structure your loan around the As Is value — provided certain conditions are met:

• The property must be habitable (C4 condition or better) and free from significant disrepair.

• Minimum 3-year seasoning of the property.

• Payoff lender must not be a bridge/construction lender or charging default interest, extension fees, or late fees.

• Credit score of 680+.

• Minimum Experience Tier 3 (4 or more similar completed rehab projects).

• Strong sales comps in the neighborhood must support the higher valuation.

• A logical business scenario (e.g., property was rented for 3+ years, tenants vacated, and now it requires renovation for sale).

This option is designed to help Massachusetts investors unlock value from well-positioned, seasoned assets — without relying solely on cost basis.

Transactions Involving Wholesalers and Price Run-Ups

Massachusetts investors working with wholesalers or handling assignments and double closes must follow these guidelines:

• Assignment fees or double-close price run-ups are included in the value basis only up to 20% of the original A-B contract price.

• Any price increase beyond this 20% threshold must be covered by the borrower directly.

• Full documentation is required:

  • A-B contract (seller and wholesaler)

  • B-C contract (wholesaler and buyer)

  • Wholesaler’s operating agreement

  • Clear chain of contracts

Example:

💡 Please note: if the property was listed on the MLS, OfferMarket may exclude the assignment fee or price run-up from the value basis.

Construction Holdback

The construction holdback portion of your Massachusetts bridge loan is designed to fund your renovation budget through reimbursement-based draw requests as your rehab progresses.

If you prefer to finance the rehab with your own funds and don’t require a holdback, you can opt out of this feature entirely.

For loan amounts of $100,000 or more, undrawn holdback funds are interest-free until they are disbursed. For loans under $100,000, interest accrues on the full loan amount ("full boat").

This process ensures that your Massachusetts renovation projects stay funded and on schedule, with fast and easy access to your holdback funds.

Appraisal and In-House Valuation

All Massachusetts bridge loans require a valuation of the property. Depending on the loan scenario, we may require either:

• A third-party interior appraisal

• A third-party exterior appraisal

• Or an in-house valuation performed by OfferMarket

In-House Valuation Eligibility

OfferMarket reserves the right to request an exterior or interior appraisal even if in-house valuation is initially eligible.

Exterior Appraisal

Exterior-only appraisals may be accepted for Massachusetts bridge loan scenarios including:

• Real estate owned (REO) sales

• Foreclosure auctions

• Sheriff’s sales

• Online property auctions

• Bankruptcy sales

Exterior appraisals must be dated within 120 days of the closing date. If between 120 and 179 days old, a recertification will be required.

Interior Appraisal

If your loan scenario doesn’t meet the criteria for an exterior appraisal or in-house valuation, a full interior appraisal will be required.

OfferMarket will handle ordering your appraisal through an approved appraisal management company (AMC). Borrowers are responsible for paying the AMC invoice before the appraisal is conducted. Loan applications remain on hold until the appraisal invoice is paid.

Appraisal Transfer

If you already have a recent appraisal (not ordered by OfferMarket), it may be eligible for transfer — provided it meets these requirements:

• Ordered through an approved AMC

• Less than 180 days old at loan closing

• Recertified if between 120–179 days old

• Transferring lender provides:

  • A signed transfer letter with AIR compliance certification

  • PDF and XML versions of the appraisal report

  • Proof of appraisal payment (invoice)

This ensures compliance with appraisal independence requirements while streamlining the process for Massachusetts investors.

Scenario: Stabilized Bridge Loan

If your Massachusetts property is already stabilized — meaning it has no deferred maintenance and carries an appraisal condition rating of C4 or better — we may offer funding based on the As Is value.

This structure, known as a stabilized bridge loan, provides up to 75% of the As Is value, making it a solid option for rental-ready or market-ready properties.

This option is particularly useful for investors in Massachusetts looking to refinance or leverage properties that are already in strong condition without significant rehab needs.

Key Loan Details

Below are the key loan parameters for OfferMarket’s Massachusetts Bridge Loan Program:

* Subject to underwriting review and eligibility requirements.

Extensions

While Massachusetts bridge loans are designed for short-term use (12 to 24 months), sometimes projects encounter delays. Our extension options allow flexibility, but they come with additional fees — so we encourage all borrowers to avoid needing an extension whenever possible.

Common factors that increase the risk of project delays include:

• Working with underqualified general contractors

• Taking on aggressive rehab scopes without sufficient experience or liquidity

• Investing in markets with slow permitting and zoning processes

• Acquiring properties with problematic tenant situations (i.e. lease holds or evictions)

• Lacking a dual exit strategy (sale or refinance)

Focusing on these risk factors helps you avoid the need for costly extensions.

Extension Limits

If your Massachusetts bridge loan isn’t paid off within the initial term, you may request an extension of up to 50% of the original term length. Extensions are available in either 3-month or 6-month increments.

Extension Terms and Fees

Extension fees will be added directly to your payoff statement. Below is the Massachusetts Bridge Loan fee schedule for extensions:

Remember, the best way to avoid extension fees is by planning conservatively and choosing manageable rehab scopes.

Extension Prerequisites

Before an extension is approved, OfferMarket will require confirmation that your builder’s risk insurance policy is active and will remain in effect for the full extension period. This helps ensure both your investment and the lender’s position are protected throughout the extended term.

Ineligible Property Types

Certain property types are not eligible for financing under the OfferMarket Massachusetts Bridge Loan program. These include:

• Mixed-use properties

• 5+ unit multifamily buildings

• Condotels and Co-ops

• Mobile or manufactured homes

• Commercial real estate (retail, office, industrial, etc.)

• Cabins and log homes

• Properties with oil or gas leases

• Operating farms, ranches, orchards

• Vacation or seasonal rentals

• Unique, exotic, or ultra-luxury properties

• Properties accessed by unpaved or dirt roads

Maintaining these restrictions allows us to focus on residential investment properties with predictable performance and liquidity.

Exception Scenarios

In some cases, exceptions may be made outside of standard guidelines for Massachusetts investors who meet certain additional qualifications. These exception scenarios may include:

• Guarantor credit scores between 660–679

• Leasehold properties (ground rent situations)

• Smaller properties:

  • Single-family homes between 500–699 SQFT

  • 2–4 unit properties where at least one unit is 400–499 SQFT

• Funding initial advance based on As Is value when it exceeds cost basis

• Non-arms-length transactions (subject to review)

• Financed interest payments (see next section)

All exception requests are reviewed individually by our underwriting team, and approval is based on a combination of risk factors, experience, creditworthiness, and liquidity.

Borrower and Guarantor Requirements

Our Massachusetts Bridge Loan program is designed for business-purpose borrowers. To qualify, borrowers and guarantors must meet the following requirements:

Liquidity Verification

To protect your financial position and ensure safe project execution, OfferMarket requires Massachusetts borrowers to maintain a minimum level of liquidity. Specifically, you must show proof of estimated cash to close plus at least 25% of your rehab budget in verified liquid assets.

Eligible Liquid Assets:

• Personal bank accounts

• Business bank accounts (including your borrowing entity)

• Brokerage accounts (personal or business)

• Retirement accounts (50% value applied due to restrictions on access)

Note: You do not need to move funds between these accounts — simply provide verification that these balances exist at the time of underwriting.

Verification Documentation:

• Two (2) most recent statements for each account being used to demonstrate liquidity.

• No seasoning requirement for new accounts (newly opened accounts are allowed).

• Letter of Explanation (LOE) required for any large deposits.

This liquidity requirement ensures you’re financially prepared to handle your Massachusetts rehab project, reducing the risk of cash flow issues or project interruptions.

Credit and Background Items

We perform comprehensive background and credit reviews on all Massachusetts bridge loan guarantors. Here are the key considerations:

• Credit Score Calculation:

  • If three scores are returned on the Tri-Merge report, we use the middle score.

  • If two scores are returned, we use the lower score.

• Mortgage Tradelines:
  If no mortgage tradelines appear, we require six months of interest reserves.

• Less Than 5 Tradelines:
  Also triggers a requirement for six months of interest reserves.

• Bankruptcy:

  • Discharge date must be at least 4 years prior to closing.

  • Between 4–7 years: minimum 3 months of interest reserves required.

• Foreclosure:

  • Completion date must be 4+ years before closing.

  • Same reserve requirements apply as bankruptcy if within 4–7 years.

• Late Mortgage Payments (past 12 months):
  Requires a letter of explanation (LOE) and may impact eligibility.

• Past Due Balances:
  Must be fully paid before funding.

• Involuntary Liens or Judgments (e.g., tax lien, child support):
  Must be cleared before closing.

• Pending Civil or Criminal Lawsuits:
  Requires LOE and subject to loan committee discretion. Criminal charges related to financial crimes, serious offenses, or repeat offenses are not eligible.

Interest Reserves

Interest reserves, if applicable, are collected at closing and held in servicing escrow. These reserves cover your monthly interest payments before you start making direct payments from your account.

Interest reserves provide peace of mind by covering initial loan payments during early stages of your Massachusetts rehab project.

Financed Interest Payments

For eligible Massachusetts borrowers, OfferMarket may allow financed interest payments instead of requiring monthly payments out-of-pocket. This can help protect your liquidity and avoid relying heavily on credit cards during your project.

Here’s how it works:

Example Scenario:

Instead of monthly payments, the interest is added to your payoff balance, giving you flexibility during rehab.

Property Sourcing Guidelines

For Massachusetts investors, OfferMarket applies specific guidelines to ensure safe, transparent property sourcing:

• New Market Deals:
  Require a General Contractor agreement or a letter explaining why a GC is not needed.

• Wholesale and Price Increases:
  Deals involving assignment fees or rapid price increases require extra documentation and review.

• Condos, Conversions, and Large Renovations:
  May require architect or engineer letters, building permits, or scope clarifications.

• Documentation Checklist:

  • Purchase contracts

  • Settlement statements

  • Payoff letters (if applicable)

  • Track record documentation

  • Borrowing entity formation documents

These guidelines help ensure your Massachusetts bridge loan transaction is well-documented, transparent, and properly underwritten.

Bridge Loan Insurance Guidelines

Insuring your Massachusetts investment property is essential. Our Bridge Loan Program requires Builders Risk Insurance, also referred to as Fix and Flip Insurance — a tailored bundle of coverages for properties that are vacant, under construction, or in poor condition.

Required Coverage and Limits:

Coverage Details

To ensure your Massachusetts investment is properly insured and protected throughout your rehab project, here are the specific coverage requirements for your Builder’s Risk Insurance:

💡 Pro tip: After acquiring the property, promptly install smoke detectors, secure locks, and security cameras to comply with insurance terms and prevent denied claims.

Frequently Asked Questions

What states does OfferMarket fund bridge loans?

OfferMarket provides bridge loans across the United States, including Massachusetts. Here’s the full list of eligible states:

Arizona*, Alabama, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, 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 where licensing requirements apply, OfferMarket may operate as a rate-shopping service through a licensed lending partner.

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

Yes! Many Massachusetts real estate investors juggle multiple projects at once and often have several bridge loans open simultaneously. However, our team will always prioritize risk management. If we determine that your liquidity or pace of execution doesn’t support taking on additional loans safely, we’ll communicate this to help you avoid overextension.

Are bridge loans considered commercial?

Yes, bridge loans are classified as commercial loans because they are issued for business purposes through your borrowing entity (LLC or Corporation). These loans are not intended for consumer or personal use, making them ideal for serious real estate investors operating within Massachusetts.

What is the minimum loan amount?

The minimum loan amount for a Massachusetts bridge loan through OfferMarket is $25,000.

Which property types are eligible?

Our Massachusetts Bridge Loan Program finances non-owner occupied residential properties in the 1-4 unit category:

• Single-family residences

• Duplexes, triplexes, quadplexes (2-4 unit multifamily)

• Townhomes

• Warrantable condominiums

• Planned Unit Developments (PUDs)

Note: Mixed-use buildings, 5+ unit multifamily properties, condotels, co-ops, manufactured homes, and commercial real estate are not eligible under this program.

How do you calculate Loan-To-Value (LTV)?

In our Massachusetts Bridge Loan Program, LTV typically refers to Loan-To-After-Repair-Value (LTARV) — the total loan amount (purchase financing plus rehab budget) divided by the property's projected after-repair value.

What are the credit requirements?

What are the experience requirements?

Experience is not mandatory for Massachusetts investors — we support both newcomers and seasoned professionals. However, your completed project track record can improve your loan terms, including initial advance percentage and LTARV.

Once you complete the Track Record section in your Loan File, our team will verify your experience through documentation such as:

• Settlement statements

• Operating agreements

• Other supporting evidence of project completions

Does being a wholesaler count toward experience?

No — being a wholesaler in a Massachusetts real estate transaction does not qualify as completed rehab experience. To be counted toward your experience tier, you must have been financially responsible for successfully completing the renovation project.

What documentation is required?

We’ve streamlined the loan process to make documentation easy to submit via our Loan File system. Documentation stays securely stored in your OfferMarket account for faster future applications.

Purchase Transactions – Documentation Checklist

Refinance Transactions – Documentation Checklist

Are there special requirements for loans over $1M?

Yes, Massachusetts bridge loans above $1,000,000 (up to $2,000,000) require additional qualifications:

Glossary of Key Terms

Term	Definition
ADU	Accessory Dwelling Unit — secondary self-contained unit on the same parcel.
Arms-Length Transaction	A deal between unrelated, independent parties to ensure fair pricing.
Non-Arms-Length Transaction	A deal where buyer and seller have a relationship that may influence pricing.
Initial Advance	Loan amount allocated toward the purchase price, wired at closing.
Construction Holdback	Loan funds allocated for rehab, disbursed through draw reimbursements.
Interest Reserves	Interest payments collected at closing and held in escrow to cover initial months of payments.
LOE (Letter of Explanation)	Written explanation for credit issues, large deposits, or background items.
LTC (Loan-To-Cost)	Loan amount divided by the total project cost (purchase + rehab).
LTFC (Loan-To-Full-Cost)	Ratio of the loan amount to total project cost, used when rehab budget exceeds purchase price.
LTV (Loan-To-Value)	Loan amount divided by As Is property value.
LTARV (Loan-To-After-Repair Value)	Total loan divided by the estimated after-repair value.
As Disbursed Interest	Interest accrues only on funds that have been disbursed.
Full Boat Interest	Interest accrues on the full loan amount from day one.
Lopsided Deal	When rehab budget exceeds the purchase price (triggering LTFC limits).
GC Agreement	Contract with a General Contractor outlining scope and responsibilities.
DSCR (Debt Service Coverage Ratio)	Rent divided by PITIA (Principal, Interest, Taxes, Insurance, and Association dues).