Last Updated: May 2, 2025
At OfferMarket, we’re all about helping you unlock long-term wealth through smart, strategic real estate investments. For investors focusing on Washington DC’s dynamic neighborhoods—from rowhomes in Capitol Hill to rentals in Deanwood—our platform delivers the tools you need to succeed:
💰 Direct private lending
☂️ Competitive insurance rate shopping
🏚️ Access to exclusive off-market properties
Our Bridge Loan program is your fast-track to purchasing and rehabbing 1-4 unit residential properties across the District. Whether your game plan is to flip for profit or to hold, rent, and refi into a DSCR loan, OfferMarket is ready to be your lending partner.
Let’s dig into how the OfferMarket Bridge Loan works for real estate investors in Washington DC.
A bridge loan is a short-term funding solution that gives investors fast, interim capital—an essential tool in a high-stakes real estate market like DC’s. It fills the gap between acquisition and long-term financing or sale.
In a city where speed and timing are critical, here’s how local investors leverage bridge loans:
Snapping up undervalued rowhomes or condos to renovate and flip
Tapping equity from a quick cash buy in Petworth to fund rehab
Paying off an existing loan while continuing renovations on a Bloomingdale property
Acquiring off-market assets in NE DC to resell without rehab
Repositioning properties by refinancing all-cash purchases for liquidity
Taking advantage of completed rehabs by refinancing instead of selling—keeping doors open
In the real estate investor’s world, “bridge loan,” “hard money loan,” and “fix and flip loan” are often used interchangeably. Call it what you will—this tool is built for speed, flexibility, and impact.
Bridge loans consist of two parts:
In practice, most DC investors use both components to reduce their upfront cash outlay. But you don’t have to. Want only the rehab funds? That’s fine. Just need purchase money? Also doable. You’re in the driver’s seat.
Whether you're restoring a Mount Pleasant townhome or rehabbing a Columbia Heights triplex, bridge loans empower you to move faster than the market.
Your plan might be to flip. Or maybe BRRRR (Buy, Rehab, Rent, Refinance, Repeat). But sometimes the market shifts—rents rise, resale demand drops, or vice versa. That’s why bridge loans work well in DC, where markets like Brookland and Trinidad can change rapidly.
Example scenarios:
You planned to BRRRR a property in Hillcrest, but selling now nets a better return.
You intended to flip in Brightwood, but market cooling makes a short-term rental play smarter.
Having a dual-exit strategy makes your investment more resilient. Our loan terms are structured to support that kind of flexible thinking.
From experienced flippers in Petworth to first-time BRRRR investors eyeing opportunities in Congress Heights, bridge loans are a popular weapon in the local investor’s toolkit.
Who benefits most?
Fix and flip investors – Those targeting value-add properties for resale profit
Buy-and-hold investors – Leveraging BRRRR to build long-term rental portfolios
(**) Pro tip: Our Fix and Rent bundle combines a bridge loan with a discounted DSCR refinance, giving DC investors smoother transitions from rehab to rental.
Many of our DC-based clients blend strategies. One month they’re flipping in Eckington; the next, they’re renting out in Deanwood. That’s the flexibility bridge loans allow—and the smart play in a mixed market like the District.
Criteria | Guideline |
---|---|
Loan amount (minimum) | $25,000 |
Loan amount (maximum) | $2,000,000 |
ARV (minimum) | $100,000 |
Experience | Not required |
Credit score (minimum) | 680 |
Borrowing entity | LLC or Corporation |
Initial advance | Up to 90% |
Construction holdback | Up to 100% |
LTARV (maximum) | 75% |
Interest rate | Get instant quote |
Origination fee | 1.5 to 2 points |
Term | 12 to 24 months |
Points out | None |
Prepayment penalty | None |
Structure | Interest-only with balloon payment |
Recourse | Full (51% of entity must guarantee) |
Exit strategy: Sale | Minimum 30% ROI |
Exit strategy: Refinance | Minimum 1.1 DSCR after repairs |
Valuation | Appraisal or in-house valuation |
SqFt (minimum) | SFH: 700+, 2-4 unit: 500+ per unit, Condo: 500+ |
Acreage (maximum) | 5 |
Interest accrual | Under $100K loan: full boat; $100K+ loan: as disbursed |
Advanced draws | Lender discretion |
Down payment (minimum) | $10,000 |
These guidelines support both new and seasoned investors, whether you’re fixing up a Takoma Park duplex or refinancing an all-cash purchase near Shaw.
DC’s market is full of opportunity—but risk management matters. OfferMarket has a sub-0.5% foreclosure rate across all loans issued, and we aim to keep it that way by funding smart, realistic deals.
Projects with steep rehabs and minimal investor experience often run into delays, surprises, and budget overruns. This is especially true in DC, where permitting can vary dramatically between Wards.
We’re your partner in more than just capital. We help assess risk and feasibility, ensuring your project is positioned to succeed.
The size of your initial advance hinges on experience, credit, and deal specifics.
We review:
Investment property ownership in the past 24 months
Similar verified rehab projects over the past 5 years
Guarantor credit score (680 minimum, 720+ preferred)
In high-cost zones like DC, we also focus on valuation accuracy. If your purchase price is higher than the As Is valuation, your loan will be based on the lower figure.
Exit strategy matters too:
Flips must target a minimum projected profit of $15,000 and 30% ROI
Rent-refinance projects must show a DSCR of at least 1.1 post-rehab
Rural designation limits do not apply in Washington DC, so urban projects get full consideration.
Tier | Verifiable experience |
---|---|
1 | 0 |
2 | 1 to 2 |
3 | 3 to 4 |
4 | 5 to 9 |
5 | 10+ |
These tiers help us calibrate risk and tailor leverage. Whether you’ve flipped dozens of rowhomes or just getting started in Woodridge, your track record plays a role in loan terms.
Tier | Verifiable experience |
---|---|
1 | 0 |
2 | 1 to 2 |
3 | 3 to 4 |
4 | 5 to 9 |
5 | 10+ |
(*) Borrowers in Tier 1 may qualify for 85% with excellent credit and strong liquidity.
Scenario | Adjustment |
---|---|
Credit score < 720 | -5% |
Full gut rehab | -5% |
New market | -5% |
Licensed Realtor | +5% |
Licensed GC | +10% |
Licensed PE | +10% |
Rural | -20% (3+ experience required) |
In DC, being a licensed contractor or Realtor can boost your leverage—helping you stay competitive in this tight housing market.
Rehab Scope | Definition |
---|---|
Light | Rehab budget < 25% of purchase price |
Moderate | 25%–49.99% of purchase price |
Heavy | 50%–99.99% of purchase price |
Extensive | 100%+ of purchase price (e.g. additions, ADUs, or extreme undervalue) |
In the District, where properties vary from neglected historic shells to turn-key rehabs, it’s critical to accurately scope your project. We support all levels—provided the experience and planning back it up.
Rehab Scope | Definition |
---|---|
Light | Rehab budget < 25% of purchase price |
Moderate | 25%–49.99% of purchase price |
Heavy | 50%–99.99% of purchase price |
Extensive | 100%+ of purchase price (e.g. additions, ADUs, or extreme undervalue) |
Even if you’re tackling a full rebuild on a detached home in Riggs Park, we’ve got the tools to finance it—as long as your tier aligns.
Your maximum Loan-To-After-Repair Value (LTARV) is determined by your experience tier and the scale of your renovation.
Tier | 1 | 2 | 3 | 4 | 5 |
---|---|---|---|---|---|
Experience | 0 | 1-2 | 3-4 | 5-9 | 10+ |
Light | 70% | 70% | 75% | 75% | 75% |
Moderate | Ineligible | 70% | 75% | 75%< | 75% |
Heavy | Ineligible | 70% | 75% | 75%< | 75% |
Extensive | Ineligible | Ineligible | 70% | 70% | 70% |
In a fast-appreciating market like DC, having access to the full 75% LTARV gives investors powerful leverage—especially when bidding on competitive properties.
For projects where the rehab budget exceeds the purchase price—common in DC’s heavily distressed neighborhoods—Loan-To-Full-Cost (LTFC) limits apply.
Tier | 1 | 2 | 3 | 4 | 5 |
---|---|---|---|---|---|
Experience | 0 | 1-2 | 3-4 | 5-9 | 10+ |
Light | N/A | N/A | N/A | N/A | N/A |
Moderate | Ineligible | N/A | N/A | N/A< | N/A |
Heavy | Ineligible | N/A | N/A | N/A< | N/A |
Extensive | Ineligible | Ineligible | 85% | 90% | 90% |
This structure ensures high-risk projects—like major conversions in Trinidad or Deanwood—are backed by serious experience and financial skin in the game.
Purchase price: $100,000
Tier: 1
Credit score: 695
Rehab budget: $24,000
ARV: $150,000
Initial advance: $75,000 (75%)
Construction holdback: $24,000
Total loan: $99,000
LTARV: 66%
LTFC: 79.8%
Interest accrual: Full boat
Purchase price: $100,000
Tier: 1
Credit score: 750
Rehab budget: $24,000
ARV: $150,000
Initial advance: $80,000 (80%)
Construction holdback: $24,000
Total loan: $104,000
LTARV: 69.33%
LTFC: 83.9%
Interest accrual: As disbursed
Purchase price: $100,000
Tier: 4
Credit score: 750
Rehab budget: $20,000
ARV: $150,000
Initial advance: $90,000 (90%)
Construction holdback: $20,000
Total loan: $110,000
LTARV: 73.33%
LTFC: 91.67%
Interest accrual: As disbursed
For seasoned DC investors who bought years ago and are now ready to reposition assets, we offer flexibility when the As Is value exceeds your cost basis.
Requirements include:
Property must be habitable (C4 condition or better)
Must be seasoned 3+ years
Credit score 680+
Experience Tier 3+
Strong comps backing current value
If, for example, a Columbia Heights duplex has appreciated substantially since acquisition and you now plan to renovate before listing, we’ll consider As Is value as the base for funding.
DC’s investor market is full of wholesalers and assignment deals. We allow up to a 20% markup on the original purchase price (A-B) when working with wholesalers.
Example:
A-B contract (owner to wholesaler): $100,000
B-C contract (assignment): $125,000
As Is value: $125,000
Advance basis: $120,000
Just be prepared to show full contract chains, assignments, and the wholesaler’s operating agreement. MLS-listed flips and excessive markups may not qualify.
Funds for your rehab work in DC are reimbursed via draw requests after confirmed progress.
Criteria | Guideline |
---|---|
Minimum draw amount | None |
Max draw | 100% of remaining holdback |
Draw inspection | Self-serve (app-based) |
Draw fee | $270 |
Wire fee | $30 |
Materials not installed | 50% reimbursed (receipt required) |
Draw processing | 0–2 business days |
If you're rehabbing a DC rowhome and floating rehab costs yourself, you can choose to skip the construction holdback altogether.
All DC bridge loans require a valuation. Depending on the deal, we’ll either order an appraisal or use our in-house evaluation process.
Available for SFH, Duplex, Triplex, Quadplex
Credit score 720+
Experience Tier 4+
Urban only (not available for rural areas—no issue in DC)
We may still require third-party appraisal if the property doesn’t meet these criteria.
We accept exterior appraisals in scenarios like:
REO or foreclosure
Online or sheriff's sale
Bankruptcy proceedings
All other deals in DC will require a full interior appraisal. We handle ordering through an AMC, and you’ll just need to pay the invoice.
Property Type | Form Required |
---|---|
Single family | 1004 + 1007 (ARV + As Is) |
2-4 unit | 1025 + 216 |
Condo | 1073 + 1007 |
These valuations give us—and you—a reliable roadmap for financing and post-rehab projections.
If your DC property is already in solid shape—think condition rating of C4 or better—you may qualify for a stabilized bridge loan, which is underwritten based on its current As Is value.
Criteria | Guideline |
---|---|
LTV (maximum) | Tier 1: 70% Tier 2: 70% Tier 3–5: 75% |
LTFC (maximum) | Tier 1–2: 80% Tier 3–5: 90% |
Appraisal condition rating | C1, C2, C3, or C4 |
Loan Term (maximum) | 12 months |
This option is ideal if your DC property doesn’t need major rehab—just a holding period before listing or refinancing.
Criteria | Details |
---|---|
Loan Amount | $25,000 to $2,000,000 |
Units per Property | 1 – 4 |
Eligible Property Types | Non-owner occupied residential (SFH, 2–4 unit, townhomes, condos) |
Minimum Property Size | SFH: ≥700 sq ft Condos/2–4 unit: ≥500 sq ft per unit |
Max Acreage | 5 acres |
Loan to Cost | Up to 90% purchase, 100% rehab |
LTARV | Up to 75% |
Down Payment | $10,000 minimum for deals under $100K |
Loan Term | 12 months standard; 18–24 months for select deals |
Extensions | Up to 50% of original term |
Points | 1.5–2 (min $2,000) |
Prepayment Penalty | None |
Occupancy | Non-owner, business purpose only |
Transaction Types | Arms-length purchase, refinance |
Geographic Coverage | All states except AK, AZ, HI, MN, ND, NV, OR, SD, UT, VT |
Amortization | Interest-only with balloon |
Interest Accrual | Loans < $100K: Full Boat Loans ≥ $100K: As Disbursed |
This structure is perfect for navigating fast-paced neighborhoods like Petworth or Columbia Heights.
Most DC bridge loans are paid off in under 12 months—but sometimes delays happen. We allow extensions, but encourage early planning to avoid them.
To avoid needing an extension:
Work with trusted general contractors
Avoid aggressive rehab scopes without experience
Steer clear of properties with tenant or eviction issues
Ensure zoning and permitting timelines are realistic
Always have a dual exit strategy (flip or rent-refi)
Extensions are granted up to 50% of your original loan term and can be structured in 3- or 6-month increments.
Initial Loan Term | Max Extension |
---|---|
12 months | 6 months |
18 months | 9 months |
24 months | 12 months |
Keep in mind—extensions come with additional fees and interest, so they’re best treated as a backup plan, not part of your baseline strategy.
Extension Term | Fee |
---|---|
3 months (1st request) | 1% of total loan amount |
3 months (2nd request) | 1.5% of total loan amount |
6 months (1st request) | 2.5% of total loan amount |
Also, don’t forget—you’ll need to confirm that your builder’s risk insurance policy remains active through your new maturity date.
Some properties don’t qualify for this program. The following are not eligible for bridge loan financing in DC or elsewhere:
Mixed-use
5+ unit multifamily
Co-ops and condotels
Manufactured/mobile homes
Commercial properties
Cabins or log homes
Properties with oil/gas leases
Operating farms, orchards, ranches
Short-term vacation rentals
Exotic or luxury residences
Homes on unpaved or dirt roads
If your project includes any of the above, let’s explore alternative loan programs tailored for those use cases.
Some DC projects might fall outside standard guidelines—but we’re open to exceptions when risk is managed appropriately.
These include:
Guarantor credit score of 660–679
Leasehold properties (ground rent)
Homes between 500–699 sq ft (SFH) or 400–499 sq ft per unit (2–4 unit)
Initial advance based on As Is value > cost basis
Non-arm’s-length transactions
Financed interest payments
These exception cases are reviewed on a case-by-case basis. If your deal’s unconventional, reach out—we may still be able to structure it.
To qualify for a bridge loan in DC, here’s what you’ll need:
Item | Requirements |
---|---|
Borrowing Entities | Must be an LLC or Corporation (nonprofits not eligible) |
Eligible Borrowers | US Citizens, Permanent Residents, approved Foreign Nationals |
Foreign Nationals | Valid Passport & Visa (excludes travel/student), US FICO required |
Credit Score | Minimum 680 (exceptions for 660–679 with conditions) |
Credit Report | Tri-Merge, not older than 120 days |
Liquidity | Cash to close + 25% of rehab budget across all guarantors |
Guaranty | Purchase: 51% of entity must guarantee Cash-out refi: 100% must guarantee |
Net Worth | Guarantor(s) must have net worth ≥ 50% of loan amount |
Interest Reserve | Based on credit profile (see next section) |
DC deals move quickly, and we need to confirm your financial capacity to execute. That includes verifying enough liquidity for your down payment and a buffer.
Acceptable liquid assets:
Bank accounts (personal or business)
Brokerage accounts
Retirement accounts (50% haircut applied)
Verification process:
Submit your 2 most recent statements
No account seasoning required
New accounts are allowed
Provide letter of explanation (LOE) for large deposits
No need to transfer funds—just show you have them. This approach keeps underwriting fast and friction-free.
Your credit history helps determine reserves and eligibility. Here’s how we assess it:
3 scores? We use the middle
2 scores? We use the lower
<5 tradelines? 6 months of reserves required
No mortgage tradelines? 6 months of reserves required
Bankruptcy or foreclosure in past 4–7 years? 3 months reserves
Late mortgage payments in past 12 months? LOE required
Unpaid tradelines, liens, or judgments? Must be settled before funding
Pending lawsuits? Reviewed case-by-case
Financial or serious criminal history? Not eligible
This structure ensures transparency while protecting borrowers and lenders from undue risk.
Interest reserves are pre-funded interest payments collected at closing and held in escrow. These funds are drawn down monthly before you’re required to make any out-of-pocket payments.
Interest Reserve | Scenario |
---|---|
0 month | Lender discretion |
1 month | Guarantor FICO 700+ |
3 months | Guarantor FICO 660–699 |
6 months | FICO 660–699 and background or credit concerns |
For DC investors managing multiple projects at once, interest reserves can offer welcome breathing room on cash flow during the initial rehab period.
To protect your liquidity during intensive renovations in DC, you may be eligible for financed interest payments—meaning monthly interest is deferred and added to your payoff statement.
Example:
Loan: $100,000
Interest Rate: 12%
Term: 9 months
Accrued Interest: $9,000
Payoff: $109,000
This option is popular with investors working on capital-intensive rehabs who want to keep more cash on hand for labor, materials, and permits.
Property Sourcing Guidelines
Whether you’re buying in Park View or Brookland, clear documentation helps speed up loan processing.
Key points:
New market deals require a GC agreement or LOE if self-managing
Wholesaler deals or big markups need added review
Large reno jobs or condo conversions may need architectural plans or permits
Required docs include contracts, HUDs, payoff letters, rehab scope, and track record
We streamline all document uploads via our secure Loan File system—making it easier to go from offer to close.
Bridge loan insurance—often called Builder’s Risk or Fix and Flip insurance—is required to protect your property during the term of your loan.
Coverage Type | Limit | Required? |
---|---|---|
Dwelling | Replacement cost or loan amount | Yes |
Liability | $1M per occurrence / $2M aggregate | Yes |
Builder’s Risk | Included | Yes |
Flood | Greater of $250K or loan amount (if in FEMA SFHA) | Conditional |
Policy Requirements |
---|
AM Best rating: A- VIII or higher |
Special form coverage |
Deductible: $1,000–$5,000 |
No wind/hail/named storm exclusions |
Lender named as Mortgagee & Additional Insured |
30-day cancellation notice |
💡 Pro tip: Install smoke detectors and lock systems the day you take possession—doing so helps meet insurance requirements and avoids denied claims.
We fund bridge loans in nearly all U.S. states—including Washington DC. Some states are referral-only due to licensing, but DC is fully supported for direct lending.
Yes. Many DC investors carry multiple loans concurrently. We’ll help you assess your liquidity and bandwidth to make sure your projects remain on track.
Yes. All OfferMarket bridge loans are business-purpose loans and are structured as commercial loans to your borrowing entity (LLC or Corporation).
The minimum bridge loan amount is $25,000.
We finance non-owner-occupied 1–4 unit residential properties:
Single-family homes
2–4 unit multifamily
Townhomes
Warrantable condominiums
Note: Mixed-use and large multifamily are not eligible under this program but may be financed under our commercial lending division.
For DC bridge loans, we calculate LTV using the lower of:
Contract purchase price
Our internal or appraised As Is value
LTARV = (Initial advance + construction holdback) ÷ After-repair value
We also consider your total project cost (purchase + rehab) to determine Loan-To-Full-Cost (LTFC) limits.
Minimum credit score is 680. Borrowers with 660–679 may qualify under our exception program. Only guarantors' scores are considered; non-guarantor members of the borrowing entity are not reviewed.
No experience is required—but more experience equals more leverage. We evaluate your past rehab projects to assign a Tier (1–5). The higher your tier, the more favorable your terms.
To verify experience, just upload settlement statements and your entity docs into your Loan File.
No. While wholesaling builds your understanding of DC’s neighborhoods and off-market channels, it doesn’t carry the same risk or responsibility as a full renovation.
Why not?
Because you weren’t financially responsible for the rehab’s success. Experience credit goes to those who fund, manage, and complete the actual renovation.
We’ve made documentation fast and digital. Whether you’re buying a detached in Takoma or refinancing a Columbia Heights rowhome, your Loan File will prompt you to upload:
Section | Docs Needed |
---|---|
Loan File | Fill out borrower details |
Purchase Contract | Fully executed |
Credit Report | Soft pull (tri-merge) |
Background Report | For each guarantor |
Track Record | Optional but boosts leverage |
ID Verification | Driver’s license, passport, etc. |
Entity Docs | Articles, Operating Agreement, W-9 |
Scope of Work | Rehab budget itemized |
Appraisal | We order, you pay invoice |
Bank Statements | 2 recent (can be personal or business) |
LOE | If requested (e.g. large deposits, credit remarks) |
If you’re refinancing a project in DC—say a cash deal in Brookland or a long-held asset in Anacostia—you’ll need to provide:
Section | Docs Needed |
---|---|
Settlement Statement | From your original purchase |
Credit & Background Reports | For all guarantors |
Track Record | As applicable |
ID Verification | Standard photo ID |
Entity Docs | Articles, Operating Agreement, etc. |
Sunk Costs | Detailed list of expenses to date |
Scope of Work | Detailed, line-item rehab budget |
Appraisal | Ordered by us or eligible for transfer |
Bank Statements | 2 most recent |
LOE | As needed based on review |
Yes—larger deals come with added scrutiny. If you’re borrowing over $1 million in DC (for example, on a large renovation in Logan Circle or Mount Vernon Triangle), the following applies:
Criteria | Requirement |
---|---|
Experience | Minimum Tier 3 preferred |
Market Liquidity | 3 recent local comps within 2 miles |
Credit Score | Minimum 680 + 5 tradelines w/ 24-month history |
Rural | Not eligible (N/A for DC) |
Track Record | Must document similar completed projects |
Glossary of Key Terms
Term | Definition |
---|---|
ADU | Accessory Dwelling Unit (e.g. basement apartment or rear addition) |
Arms-length | Independent transaction—buyer and seller are unrelated |
Initial Advance | Loan funds applied to purchase price |
Construction Holdback | Loan funds reimbursed post-renovation milestones |
Interest Reserves | Prepaid interest held in escrow |
LOE | Letter of Explanation for underwriter clarification |
LTC | Loan-To-Cost = Loan ÷ (Purchase Price + Rehab Budget) |
LTFC | Loan-To-Full-Cost = Loan ÷ Total Project Cost |
LTV | Loan-To-Value = Loan ÷ As Is Value |
LTARV | Loan-To-After-Repair Value = Loan ÷ Post-Reno Value |
Full Boat Interest | Interest charged on the full loan amount regardless of draws |
As Disbursed Interest | Interest charged only on disbursed funds |
Lopsided Deal | Rehab budget exceeds purchase price (unbalanced risk profile) |
DSCR | Debt Service Coverage Ratio = Rent ÷ Monthly Debt Payments |
OfferMarket Capital LLC is your go-to private lender in Washington DC for fast, flexible, and transparent bridge loans. Whether you’re flipping in the Atlas District or executing a BRRRR in Michigan Park, we’re ready to help you fund and grow your portfolio.
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