Bridge Loan Ohio

Last Updated: April 30, 2025

At OfferMarket, we’re dedicated to helping you build real estate wealth right here in Ohio. To guide you along your investing journey, we bring you an all-in-one platform designed to make success more attainable:

💰 Private lending
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🏚️ Off-market property opportunities

Our Bridge Loan Ohio program is built to offer fast, reliable, and affordable funding for the acquisition and improvement of 1-4 unit residential investment properties across cities like Columbus, Cleveland, Cincinnati, and everywhere in between.

Whether your plan is to flip for a profit or refinance into a DSCR loan and hold the property as a rental, we’re excited to help you grow and succeed in Ohio’s dynamic real estate market.

Let’s dive into the OfferMarket Bridge Loan Ohio Program!

What is a Bridge Loan?

A bridge loan provides short-term financing, filling the gap until you secure permanent financing or complete a sale.

Bridge loan scenarios

For Ohio investors, bridge loans often make sense in these scenarios:

• Buying and updating a distressed property — using a bridge loan to purchase and renovate without draining your own cash reserves.

• Refinancing a property bought with cash to fund renovations — you found a gem off-market that needed a quick close, and now you need cash out to finish the project.

• Refinancing an existing loan on a property mid-rehab — maybe your private lender needs repayment, but your project isn’t done yet.

• Purchasing without plans to renovate — such as scooping up an underpriced property in Cleveland to resell "as-is."

• Refinancing a cash buy without renovation plans — you want to pull out equity from your Dayton deal and jump on the next investment.

• Refinancing a completed renovation — the work is done but you need more time to sell or refinance.

In the real estate world, "bridge loan," "hard money loan," and "fix and flip loan" are often used interchangeably.

How it works

A Bridge Loan Ohio comes in two parts:

Initial Advance – Funds used for the purchase, wired at closing.
Construction Holdback – Funds used for rehab, reimbursed through draw requests.

Bridge loans are flexible to fit your needs. Some investors in Ohio prefer only the initial advance; others leverage both components to maximize returns and conserve cash. If you already bought a property cash, you can still tap into a construction holdback to fund your rehab.

In short, whether you're flipping a 4-unit in Cincinnati or holding a duplex in Columbus for long-term rent, a bridge loan can be tailored to your exact strategy.

When you use a bridge loan in Ohio, your plan is usually either to sell the property for a profit or to hold onto it as a rental and refinance into a longer-term loan like a DSCR loan.

In cities like Columbus, Cleveland, or Cincinnati, it’s completely normal to shift your strategy depending on how the market is behaving or how the numbers look once your project is finished.

You might start out expecting to BRRRR — buy, rehab, rent, refinance, repeat — but realize after fixing up the property that selling would give you a bigger return. Or maybe you intended to flip, but rental demand is strong and you decide to refinance and rent instead.

The lesson: focus on projects that give you two good exit options. It’s the best way to lower your risk.

Who uses bridge loans?

• Fix and flip investors ("flippers")

• Rental property investors (BRRRR Method)*

(*) Learn about our Fix and Rent bundle — a bridge loan for purchase and rehab followed by a discounted DSCR loan for the refinance.

Many Ohio investors use a hybrid model: they flip some properties and rent others, depending on what makes the most sense deal-by-deal.

Bridge Loan Program Guidelines

Project Eligibility

At OfferMarket, helping you succeed in Ohio real estate is our top priority. That’s why we take risk management seriously.

Our lifetime default rate is less than 0.5%. We stay careful because real estate deals with big renovations — heavy rehabs — are the ones that most often go wrong, especially for newer investors.

We act as your capital partner and deal advisor, setting clear expectations to help you avoid unnecessary risks. You’ll learn more about our rehab scope system below.

Initial Advance

The initial advance depends on both your experience and the specific deal details.

We look at:

• Properties you’ve owned in the past 24 months

• Completed rehab projects over the past 5 years

• Credit score (680 minimum; 720+ preferred)

If you're buying an investment property in Dayton or Akron, the appraisal or in-house valuation plays a big role. If you’re paying more than what the valuation says, the initial advance will be based on the lower number.

Exit strategy also matters:

• If you're planning to sell, there needs to be at least a 30% projected gross margin and $15,000 in profit.

• If you're renting and refinancing, or if your flip margins are too slim, the post-repair DSCR must be 1.1 or better.

Rural properties come with extra limits and require 3 or more similar rehab experiences.

Experience-based Tiers

Initial Advance by Tier

(*) 85% may be available for Tier 1 borrowers with excellent credit and strong liquidity.

Adjustments to Initial Advance

Rehab scope classification

Rehab scope eligibility

Your rehab eligibility is determined by your experience tier and the classification of the rehab scope.

In Ohio markets like Cleveland, Columbus, and even smaller cities like Youngstown, it’s smart to focus on lighter renovations, especially if you're still building your track record. Projects with heavy or extensive rehabs can get delayed or run over budget, increasing your risk.

LTARV Limits

Loan-to-after-repair-value (LTARV) limits are also tied to your experience level and rehab classification. Staying within these limits is important to control risk across various Ohio real estate markets.

LTFC Limits

Loan-to-full-cost (LTFC) limits only apply when dealing with extensive rehab projects, where the renovation budget exceeds the purchase price.

For example, if you're working on a historic property in Cincinnati’s Over-the-Rhine district with a large rehab scope, these LTFC limits would apply.

Example: No Experience

Purchase price: $100,000
Tier: 1 (0 similar verifiable experience)
Credit score: 695
Rehab budget: $24,000
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 boat

Example: 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

Example: 5 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 instead of Cost Basis for Initial Advance

Usually, our bridge loans lend based on your cost basis (purchase price plus sunk costs). This helps keep your equity strong.

But if you own a seasoned Ohio property that’s worth more today than what you originally paid, we may be able to lend based on the As Is value instead.

Requirements:

• Property must be habitable (C4 condition or better)

• At least 3 years seasoned

• Prior lender cannot have default interest or aggressive fees

• Borrower's credit score must be at least 680

• Experience Tier must be 3 or higher

• Clear evidence that market value supports a higher As Is value

This setup works well if, for example, you bought a rental property in Columbus three years ago, and now you want to renovate and list it at today's higher values.

Transactions involving wholesalers, price run-ups

If your deal involves a wholesaler, we can often include the assignment fee or double-close markup in your value basis, but with some limits.

Example:
A-B Contract (original owner to wholesaler): $100,000
B-C Contract (assignment fee): $25,000
As Is Value: $125,000
Value basis: $120,000 (max 20% markup allowed)

Guidelines for Ohio deals:

• Assignment fee or markup can be financed up to 20% of A-B price

• If the property was listed on the MLS, we may not finance the markup

• You must provide full documentation: A-B contract, B-C contract, and wholesaler’s operating agreement

• We do not finance referral or finder’s fees

• Transaction must be arm’s length

Construction Holdback

The rehab portion of your loan is reimbursed via draw requests. You’ll submit evidence of completed work, and funds will be wired once the draw is approved.

You can also opt out of the construction holdback altogether if you have enough personal liquidity and prefer to self-fund the rehab.

If your total loan is $100,000 or more, you won’t be charged interest on undrawn holdback amounts.

Appraisal and In-house valuation

Every bridge loan in Ohio requires a valuation. Based on your profile and property type, this may be an interior appraisal, exterior appraisal, or an in-house valuation.

In-house valuation

This may be used if you meet all the following:

If you meet the above, we may still require a formal appraisal based on our discretion.

Exterior appraisal

Exterior-only appraisals are allowed in specific Ohio transaction types:

• REO sales

• Foreclosure or sheriff auctions

• Online property auctions

• Bankruptcy sales

Exterior appraisal must be dated within 120 days of settlement. If it’s between 120 and 179 days old, a recertification is required.

Interior appraisal

Any loan that doesn’t qualify for an in-house or exterior-only valuation will require a full interior appraisal.

We’ll order the appraisal through our AMC. You’ll receive the invoice to pay, and the appraisal must be completed and uploaded to your loan file before moving forward.

Appraisal transfer

If you’ve already ordered an appraisal elsewhere, we may allow a transfer — but only if these conditions are met:

• Appraisal was ordered through an approved AMC

• It's less than 180 days old at closing

• If between 120–179 days old, it must be recertified

• Transferring lender must provide:

  • A signed transfer letter certifying AIR compliance

  • PDF and XML versions of the report

  • Proof the appraisal was paid

Scenario: Stabilized Bridge Loan

If your Ohio property has no deferred maintenance and a C4 or better appraisal condition, we may lend up to 75% of its As Is value.

This applies to properties ready for rent or sale and is known as a stabilized bridge loan.

Key Loan Details

Extensions

Bridge loans are designed to be short-term — typically 12 to 24 months — and most are paid off well before the end of the term. While extensions are available, they’re not ideal and should be avoided if possible. Extensions add fees, increase interest payments, and heighten the risk of foreclosure if the loan isn’t paid off in time.

To reduce your chances of needing an extension on your Ohio property, steer clear of the following:

• Hiring inexperienced general contractors

• Taking on heavy or ambitious rehab scopes beyond your skill level or cash reserves

• Dealing in markets where zoning and permits take a long time

• Projects where you can’t take possession immediately (like those with tenants or holdovers)

• Deals with only one exit strategy

Managing these risks upfront will help you stay on schedule and within budget.

Extension Limits

If your loan isn’t paid off by the end of the original term, you may extend it up to 50% of the original loan term. Extensions can be requested in 3-month or 6-month blocks.

Extension Terms and Fees

Extension fees are added to your payoff statement:

Extension Prerequisites

To extend your bridge loan, your builder’s risk insurance must remain active for the entire extension period.

Ineligible Property Types

These property types are not eligible for bridge loan funding in Ohio:

• Mixed-use buildings

• 5+ unit multifamily

• Condotels and co-ops

• Mobile or manufactured homes

• Commercial-use properties

• Cabins or log homes

• Properties with active oil/gas leases

• Farms, ranches, orchards in operation

• Seasonal or vacation rentals

• Luxury, unique, or exotic properties

• Properties on unpaved/dirt roads

Exception scenarios

We may consider exceptions for the following cases in Ohio, subject to underwriting:

• Credit scores between 660–679

• Leasehold (ground rent) ownership

• Small single-family homes (500–699 sqft)

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

• Funding based on As Is value if higher than cost basis

• Non-arm’s length transactions

• Financed interest payments

Borrower and Guarantor Requirements

Borrowing Entities

• Must be an LLC or Corporation

• Nonprofits are not eligible

Eligible Borrowers

• U.S. citizens

• U.S. permanent residents

• Foreign nationals with valid passport and qualifying U.S. visa (excludes travel/student visas unless part of waiver program)

• U.S. FICO score required if serving as guarantor

Credit Requirements

• Minimum FICO: 680

• Tri-merge credit report required (not older than 120 days)

• Fewer than 5 tradelines may require additional interest reserves

Liquidity Requirements

You’ll need to show that your liquidity covers both:

• Estimated cash to close

• Plus 25% of your rehab budget

Eligible assets:

• Personal or business checking/savings accounts

• Brokerage accounts

• Retirement accounts (valued at 50% for verification)

You’ll need the two most recent statements for each asset. No seasoning required for newly opened accounts. If there are large deposits, a Letter of Explanation (LOE) may be required.

Guaranty Structure

Full recourse is required. Aggregate guarantor net worth must be at least 50% of the total loan amount.

Credit and Background Items

We look closely at both your credit and background. Here’s how it works:

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

• If two are available, we use the lower one

Additional reserve requirements apply if:

• You don’t have mortgage tradelines

• You have fewer than 5 total tradelines

• You’ve had bankruptcy or foreclosure (must be over 4 years ago)

• You’ve had late mortgage payments in the past 12 months (LOE required)

• You have unpaid tradeline balances — they must be cleared before funding

• You have judgments, liens, or pending civil lawsuits (subject to review)

• Any criminal background involving financial or serious crimes makes the borrower ineligible

Interest Reserves

These are interest payments collected at closing and held in escrow. They’re drawn down to cover monthly interest before payments start coming out of your account.

Financed Interest Payments

You may qualify for financed interest payments, which means your interest accrues and is added to your payoff instead of being paid monthly.

Example:

Loan: $100,000
Interest: 12%
Held for 9 months
Accrued interest: $9,000
Payoff = $100,000 principal + $9,000 interest

This structure protects your cash reserves and helps avoid credit card debt during a renovation.

Property Sourcing Guidelines

When sourcing properties in Ohio, we follow a strict underwriting process to ensure your project is fundable and your risk is manageable.

Key considerations include:

• New market purchases require either a general contractor agreement or a written explanation of why one isn’t necessary

• Wholesale and non-arm’s length deals need added documentation

• Significant renovation projects (especially condos and conversions) may require architect/engineer letters or permits

• You’ll need to upload all relevant contracts, payoff letters, rehab history, and company documents

Bridge Loan Insurance Guidelines

You must protect both the property and yourself during the project. Insurance — often called Builder’s Risk or Fix and Flip Insurance — is required for properties under construction, in disrepair, or vacant.

Coverages and Limits

Coverage Details

Pro tip

Once you close on your Ohio property, immediately install smoke detectors, locks, and security cameras. These small steps help comply with your policy terms and reduce the chance of denied claims.

Frequently Asked Questions

What states does OfferMarket fund bridge loans?

We provide bridge loan funding across nearly all U.S. states — including full support for Ohio investors in markets like Cleveland, Columbus, Cincinnati, and beyond.

Here’s the full list of states we serve:

Arizona*
Alabama
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota*
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 DC
West Virginia
Wisconsin
Wyoming

(*) In some states where an NMLS license is required for business-purpose lending or where we do not lend directly, OfferMarket acts as a referral partner, connecting your loan to a licensed capital provider.

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

Yes. Many of our clients have multiple active bridge loans. We’ll help you manage your exposure responsibly — making sure your liquidity and project timelines can support it.

Are bridge loans commercial?

Yes. These are business-purpose loans, issued to an entity (LLC or Corporation), and are considered commercial in nature.

What is the minimum loan amount?

$25,000 is the minimum loan we offer.

Which property types are eligible?

We finance non-owner occupied 1–4 unit residential properties:

• Single-family homes

• Townhomes

• 2–4 unit multifamily

• Condos (warrantable)

Note:

• 5–9 unit properties and mixed-use deals are not eligible under this program

• We have separate programs for larger residential and commercial deals

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

We primarily look at Loan-to-After-Repair Value (LTARV), which is your total loan divided by the property’s projected value after renovation.

The initial advance is based on the lower of purchase price or As Is value, whichever is less. If you're refinancing, we look at your original purchase price and rehab costs as the cost basis.

What are the credit requirements?

You need a minimum 680 FICO. We review the credit scores of all guarantors in the borrowing entity. Scores between 660–679 may qualify with exceptions.

What are the experience requirements?

No experience is required, but experience allows for higher leverage. We verify your past rehab projects during underwriting.

Once your Track Record section is filled out, we’ll review each project. You may be asked for supporting documents like HUDs or operating agreements.

Does being a wholesaler count as experience?

No. Wholesaling doesn’t count because you weren’t financially responsible for the rehab. We only count projects where you managed and completed renovations.

What documentation is required?

We use a secure loan file system that stores your documents for current and future use.

Purchase Transaction Requirements

Section	Required Items
Settlement Statement	From original purchase
Credit Report	Soft tri-merge for all guarantors
Background Report	Required for each guarantor
Track Record	Required for each guarantor
ID Verification	Government-issued ID
Borrowing Entity	Articles, Operating Agreement, Certificate of Good Standing, W-9
Sunk Costs	All expenses to date
Scope of Work	Final rehab plan to determine ARV
Appraisal	Ordered through AMC
Bank Statements	Two recent statements from each guarantor
LOE	If requested