Bridge Loan Vermont

Last Updated: May 2, 2025

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OfferMarket is not NMLS licensed in Vermont. To serve real estate investor clients in Vermont, we operate as a rate shopping service and process your loan with the most competitive licensed capital provider on our platform.

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At OfferMarket, we’re here to help you build wealth through real estate—right here in the Green Mountain State. Our all-in-one platform gives Vermont real estate investors direct access to:

💰 Private lending
☂️ Insurance rate comparison
🏚️ Access to exclusive, off-market deals

If you're flipping a fixer-upper in Burlington or turning a duplex in Montpelier into a cash-flowing rental, our Vermont Bridge Loan program offers fast, reliable financing designed to help you succeed.

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

What is a bridge loan?

A bridge loan is short-term financing that fills the gap between acquisition and a longer-term solution. In the world of Vermont real estate investing, this might mean buying and rehabbing an older Barre home or cashing out on a property in Brattleboro to fund your next deal.

Bridge loan scenarios

In Vermont, where seasoned homes and unique properties are common, bridge loans are particularly useful for:

• Acquiring and renovating properties that need love—think farmhouse flips in Windsor or duplex updates in Rutland.

• Refinancing a cash deal so you can get reimbursed and tackle renovations—common when scooping up a deal in cash to beat other buyers.

• Refinancing an existing high-interest or short-term loan—especially when you’re mid-renovation and need more time and capital to complete the job.

• Buying off-market properties without rehabbing—some investors in towns like Middlebury look to resell these "as is" for a quick gain.

• Pulling equity out of a recent cash purchase for your next investment—perfect for investors juggling multiple deals across the state.

• Swapping out an existing loan for a more favorable structure—even if the property is already improved and ready to go.

Bridge loans are often called “hard money loans” or “fix and flip loans.” Whatever you call them, they’re a flexible tool that can unlock serious opportunities in Vermont’s unique real estate landscape.

How it works

A bridge loan in Vermont consists of two parts:

• Initial Advance – This covers part of your purchase price and is wired at closing.
• Construction Holdback – This covers your rehab budget and is released through draw reimbursements as work progresses.

You can choose to use just one part or both. Most investors across Vermont use both for optimal leverage—but if you’re self-funding renovations or holding the property "as is," you can skip the construction holdback entirely. Similarly, if you already bought the property in cash, you might only want the holdback to fund your renovation costs.

Whether you're turning a 19th-century home in Bennington into a short-term rental or breathing new life into a multi-family in Barre, your exit strategy matters—and bridge loans give you room to evolve your plan.

You might start out with a BRRRR plan—buy, rehab, rent, refinance, repeat—but then realize the Vermont buyer’s market is heating up and selling makes more sense. Or maybe you're aiming to flip a property in St. Albans but find that holding it as a rental fits your long-term goals better.

Vermont’s market often rewards flexibility. Some towns are seeing growth from out-of-state buyers and remote workers; others are anchored by local renters and tight-knit neighborhoods. Our bridge loans let you pivot without pressure, giving you time to read the room and decide whether flipping or refinancing into a DSCR loan is best.

Who uses bridge loans?

• Fix-and-flip investors tackling properties from Brattleboro to Burlington

• Buy-and-hold investors using the BRRRR method to build wealth across small Vermont towns

• Hybrid strategists who may flip one property in Rutland and rent another in Springfield, based on where the numbers—and the community—make sense

Our Fix and Rent bundle even combines your Vermont bridge loan with a discounted DSCR refinance, giving you maximum flexibility and minimum friction.

Bridge Loan Program Guidelines

Project Eligibility

Vermont isn’t your average real estate market—and we embrace that. Our mission is to help investors succeed while managing risk. With OfferMarket, fewer than 0.5% of our loans ever require foreclosure. That’s because we partner carefully with investors and work closely with you to align on scope, strategy, and risk tolerance.

We know some of Vermont’s best opportunities lie in older homes with charm and quirks—think brick colonials, craftsman fixers, and rural farmhouses. But “extensive” projects can carry greater risk, especially in areas where weather, permitting, or access can slow things down. That’s why we classify projects by rehab scope and guide you accordingly, ensuring you’re not taking on more than your experience and liquidity support.

We’re not just your capital provider. We’re your advisor, helping you avoid missteps that could derail your investment.

Initial Advance

Your initial advance depends on you and your deal. We look at your recent project experience—especially if you’ve handled renovations in Vermont’s colder climates or in older housing stock—and we prioritize borrowers with strong credit (680+ minimum, ideally 720+). Licensed Realtors, General Contractors, and Engineers earn additional leverage due to their professional know-how.

If the property price exceeds our valuation, we base your advance on the lower of the two. And your exit strategy matters: if you plan to flip, we want to see at least 30% gross margin and $15K profit; if you’re refinancing, the DSCR should be 1.1+.

In rural parts of Vermont like the Northeast Kingdom, where valuations and market activity are more variable, we limit leverage and require additional experience—just one more way we help protect your investment.

Experience-Based Tiers

Initial Advance by Tier

\Tier 1 may qualify for 85% with excellent credit and liquidity.*

Adjustments to Initial Advance

Rehab Scope Classification

“Extensive” rehabs often apply to vintage Vermont homes where the bones

Rehab Scope Eligibility

Vermont’s real estate comes with personality—whether it’s century-old woodwork in a Barre duplex or a fixer-upper near Lake Champlain. That’s why we categorize project eligibility by your experience level and the rehab scope.

While cosmetic updates and moderate repairs are eligible for most borrowers, extensive rehabs—like full structural overhauls or ADU builds—require more experience. We want you to win, and we’ve learned the hard way that complex projects in Vermont’s climate and permitting environment can trip up even seasoned investors.

LTARV Limits

Loan-To-After-Repair-Value (LTARV) varies based on your experience and scope. It helps us ensure your deal has room for upside, even after accounting for surprises—like unexpected foundation issues in an old Vermont home.

LTFC Limits

In Vermont, it’s not uncommon for the cost of renovation to rival or exceed purchase price—especially in rural areas or with heavily discounted properties. That’s when Loan-To-Full-Cost (LTFC) rules come into play, ensuring everyone has skin in the game.

Example: No Experience

Purchase Price: $100,000
Credit Score: 695
Rehab Budget: $24,000
ARV: $150,000
Tier: 1 (no experience)

• 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

Credit Score: 750
Tier: 1 (still no experience)

• Initial Advance: $80,000 (80%)

• Total Loan Amount: $104,000

• LTARV: 69.33%

• LTFC: 83.9%

• Interest Accrual: As disbursed

Example: 5 Experience

Tier: 4 (5+ deals completed)

• 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

In places like Vermont where long-term ownership is common, you may find yourself refinancing a property that’s appreciated well beyond its original cost basis.

We allow refinancing based on As Is value when:

• The property has been owned 3+ years

• It’s habitable (C4 condition or better)

• The prior lender wasn’t a bridge or construction lender

• The borrower has Tier 3+ experience and a 680+ credit score

• Market comps support the valuation

This is common with Vermont investors who’ve held a property, collected rent, and now want to reinvest in something new without selling.

Wholesale Price Run-Up Scenarios

In Vermont’s tight inventory market, it’s not unusual to find deals through wholesalers. If you're acquiring via assignment or double-close and the price run-up is ≤20%, we can count that in your loan basis.

Example:

• A-B Contract: $100,000

• Assignment Fee (B-C): $25,000

• As Is Value: $125,000

• Loan Basis: $120,000 (20% markup limit)

We require full transparency with all contracts and the wholesaler’s business docs, and we will not finance referral or finder’s fees.

Construction Holdback

Rehabbing in Vermont? We reimburse through draw requests tied to progress. No arbitrary limits—just real money for real progress.

Appraisal and In-House Valuation

Whether you’re updating a colonial in Montpelier or flipping a farmhouse in Windham County, every Vermont bridge loan includes a valuation. Depending on the deal, we may use:

• In-House Valuation: Available if you’re Tier 4+, have a 720+ credit score, and your property is not in a rural or unfamiliar market.

• Exterior Appraisal: Accepted for distressed sales (foreclosure, auction, bankruptcy) and must be dated within 120 days of closing.

• Interior Appraisal: Required for all other transactions.

We always reserve the right to request an interior appraisal, especially for unique Vermont homes that don’t fit cookie-cutter comps.

Appraisal Transfer

Already ordered an appraisal on a Vermont property? We’ll consider a transfer if:

• It’s <180 days old

• Was ordered via approved AMC

• Comes with transfer letter certifying AIR compliance

• Includes invoice and original PDF/XML files

This can be a time-saver, especially if you're refinancing a property you recently purchased or renovated.

Scenario: Stabilized Bridge Loan

If your Vermont property is in solid shape (C4 or better), we’ll appraise it “As Is” and lend up to 75% of that value. This is ideal for seasoned rentals or clean flips with no deferred maintenance.

Key Loan Details

Extensions

Bridge loans are short-term tools. But if your rehab takes longer than expected—maybe due to Vermont’s snowy season or permit delays—you can extend:

Extension Terms and Fees

To qualify, your builder’s risk insurance must cover the full extension period.

Ineligible Property Types

We do not lend on the following property types, even if they’re located in Vermont:

• Mixed use (2+ unit commercial/residential)

• 5+ unit multifamily

• Condotels, co-ops

• Mobile or manufactured housing

• Commercial or industrial buildings

• Cabins, log homes, properties with oil/gas leases

• Farms, ranches, orchards

• Vacation or seasonal rentals

• Homes on unpaved/dirt roads

(If you're considering something outside the box, reach out—we may have a partner program for it.)

Exception Scenarios

We’ll consider exceptions in Vermont for strong borrowers. These include:

• 660–679 credit scores

• Leasehold ownership

• Properties below standard size thresholds

• Non-arm’s length purchases

• Financing based on As Is value > cost basis

• Financed interest payments (see next section)

Borrower and Guarantor Requirements

Interest Reserves

To help you stay liquid throughout your project—especially if you're juggling multiple properties across Vermont—OfferMarket may collect interest reserves at closing and hold them in escrow. These reserves cover early monthly payments until you're generating revenue or until disbursements begin.

In Vermont’s seasonal market, this buffer can be a lifesaver—especially if you're renovating during winter or leasing during a slower season.

Financed Interest Payments

Instead of paying monthly interest from your bank account, you may qualify to have those payments rolled into your payoff balance.

For example:

• Loan: $100,000

• Interest: 12%

• Holding period: 9 months

• Accrued Interest: $9,000

• Payoff: $109,000 (including unpaid interest)

This option helps preserve your capital for your renovation work—ideal for large projects in historic Vermont homes.

Property Sourcing Guidelines

In Vermont, every property has its own story—especially with off-market or rural deals. To keep underwriting smooth and secure, here’s what we need:

• A GC agreement if you're investing in a new market

• Details for any non-arm’s length or wholesale transaction

• Architect/Engineer documentation for conversions or major rehabs

• Purchase contract or settlement statement

• Rehab scope with line-item budget

• Track record and formation documents

These requirements help us assess risk and support you as a trusted partner.

Bridge Loan Insurance Guidelines

Every Vermont property faces different risks—weather, condition, and sometimes vacancy. Bridge loan insurance (builders risk or fix and flip insurance) is required to protect both your asset and your liability.

Coverage Requirements

• AM Best Rating: A- VIII or higher

• Policy Type: Special form (no exclusions for hail/wind/storm)

• Deductible: $1,000–$5,000

• Designation: Lender named as mortgagee/additional insured

• Cancellation: 30-day notice minimum

💡 Tip: Install smoke alarms, locks, and security cameras as soon as you take ownership—these are often insurance policy requirements.

Frequently Asked Questions

Does OfferMarket lend in Vermont?

Yes! OfferMarket provides direct lending services in Vermont, including bridge loans and DSCR loans. Whether you’re flipping in Montpelier, refinancing in Rutland, or BRRRRing in Brattleboro, we’re here to support your project.

Can I have more than one bridge loan?

Absolutely. Many Vermont investors run multiple projects simultaneously. We’ll assess your liquidity and pace to ensure it’s sustainable—and help you manage risk.

Are bridge loans considered commercial?

Yes. All OfferMarket bridge loans are for business purposes only, issued to LLCs or corporations. These are commercial loans, even if used on residential real estate.

What is the minimum loan size?

$25,000. Whether you're renovating a small home in Barre or a quadplex in Burlington, as long as the deal meets our guidelines, we’re ready.

Which property types are eligible?

We finance:

• 1–4 unit residential properties

• Single-family homes

• Duplexes, triplexes, quads

• Condos and townhomes (if warrantable)

We do not fund mixed-use, mobile homes, condotels, or large multifamily under this program.

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

For Vermont bridge loans, LTV generally refers to Loan-To-As-Is Value—the ratio between your loan amount and what the property is currently worth.
LTARV, or Loan-To-After-Repair Value, factors in projected value post-rehab and is more common for value-add projects.

We base the initial advance on the lower of the purchase price or the appraised As Is value. The LTARV includes both the initial advance and construction holdback, divided by the ARV.

What are the credit requirements?

A minimum FICO of 680 is required. We evaluate all personal guarantors listed in the borrowing entity. Scores between 660–679 may be considered on a case-by-case basis, often with extra interest reserves.

Is experience required?

No experience? No problem. You can still qualify—though your leverage will be limited for higher-risk rehabs. Verifiable experience boosts your tier, which improves your advance rate and project eligibility.

Once you provide your track record, we’ll validate each deal. This is especially helpful if you’ve rehabbed older Vermont homes that required custom work.

Does wholesaling count as experience?

No. Only completed projects where you were financially responsible count toward your tier. Assignments, bird-dogging, and wholesaling don’t demonstrate the risk and management of a full project.

What documentation is required?

We make the process seamless, but you’ll still need to provide some essential documents to get your Vermont bridge loan approved. The requirements differ slightly depending on whether you're purchasing or refinancing the property.

Purchase Transaction Requirements

Refinance Transaction Requirements

Are There Special Requirements for Vermont Loans Over $1M?

For larger projects in Vermont—say, rehabbing a historic mansion or converting a 4-unit rental downtown—loans over $1M follow enhanced guidelines:

Glossary of Key Terms

Get Your Instant Vermont Bridge Loan Quote

OfferMarket Capital LLC is Vermont’s go-to private lending partner for real estate investors seeking speed, reliability, and flexibility. Whether you're buying, flipping, or refinancing residential properties, our team is here to help you succeed.

What you get with OfferMarket:

💰 Private lending – tailored to Vermont real estate
☂️ Insurance rate shopping – compare instantly
🏚️ Off-market property deals – find the next gem
💡 Local market insights – real-time, investor-focused

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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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