Minnesota Bridge Loan Program

Last Updated: April 30, 2025

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OfferMarket is not NMLS licensed in Minnesota. To serve real estate investor clients in Minnesota, 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 are committed to helping you grow your wealth through smart real estate investments. To support your journey as a real estate investor in Minnesota, we offer a comprehensive platform designed to streamline your investment process:

💰 Private lending solutions
☂️ Competitive insurance rate comparisons
🏚️ Access to exclusive off-market properties

Our Minnesota Bridge Loan program is crafted to deliver fast, reliable, and cost-effective funding for acquiring and improving 1 to 4-unit residential investment properties throughout the state.

Whether your plan is to flip your investment property for a quick profit or refinance into a DSCR loan for long-term rental income, we are here to be your trusted partner and help drive your success.

Let’s dive into the details of the OfferMarket Bridge Loan Program for Minnesota investors!

What is a Bridge Loan?

A bridge loan is a type of short-term financing designed to provide temporary funding until you secure a long-term loan or complete the sale of your property. It's an essential tool for investors who need quick capital to seize real estate opportunities.

Common Uses for Bridge Loans

Among Minnesota real estate investors, bridge loans are frequently utilized in these situations:

• Purchasing and rehabbing a distressed or outdated property — allowing you to finance both acquisition and renovations without draining your personal funds.

• Refinancing a property that was initially bought with cash to satisfy a seller's demand for a fast close — followed by securing funds for renovation.

• Refinancing an existing loan on a property that still needs rehab work — offering the flexibility to repay a previous lender while securing the necessary capital to finish your project.

• Acquiring a property with no intention of performing renovations — such as purchasing off-market homes below market value with plans to resell in "as-is" condition.

• Refinancing a cash purchase, without a rehab plan — giving you access to the equity tied up in the property for new investment opportunities.

• Refinancing an existing loan when renovations are complete — allowing you more time to either sell or refinance without the stress of immediate repayment.

In the world of real estate financing, bridge loans are also commonly known as “hard money loans” or “fix and flip loans.” These terms are often used interchangeably by investors and private lenders.

How the Minnesota Bridge Loan Works

Every bridge loan from OfferMarket includes two potential components:

• Initial Advance: This is the portion of your total loan dedicated to the property's purchase price. The funds are wired directly to the title company at closing.

• Construction Holdback: This portion covers your renovation budget and is disbursed to you through a draw reimbursement process once work is verified.

Our Minnesota bridge loans offer the flexibility you need. You can opt for just the initial advance, just the construction holdback, or both — depending on your specific project goals.

Most investors in Minnesota choose a combination of the initial advance and construction holdback to maximize leverage and preserve their own cash. However, many also prefer to use only the initial advance if they plan to fund the rehab themselves or don’t intend to renovate at all. On the other hand, if you purchased a property outright with cash and simply need funds to complete the rehab, we can provide up to 100% of your renovation budget as a construction holdback. The flexibility is yours — the Minnesota bridge loan world is truly your oyster!

When using a Minnesota bridge loan from OfferMarket, your exit strategy typically falls into one of two categories: flipping the property for a profitable resale, or renting the property and refinancing into a longer-term loan like a DSCR loan.

It’s important to understand that your exit plan doesn’t have to be set in stone from the start. Many Minnesota investors adjust their strategy as the project progresses, based on shifting market dynamics and updated financial projections. There’s no need to rush this decision — flexibility is key.

For instance, you might originally approach a project with a BRRRR mindset (Buy, Rehab, Rent, Refinance, Repeat), but after completing the rehab, you realize that rental demand isn’t as strong as expected. In that case, selling the property for a solid profit may be the smarter move, allowing you to reinvest in a better cash-flowing rental deal.

Another common scenario: you plan to flip the property, but if the local Minnesota housing market softens, you pivot and rent it out instead. You can then refinance into a DSCR loan with minimal prepayment penalties, hold the property for a couple of years, and keep the option to sell once market conditions improve.

These examples highlight why focusing on deals that offer dual exit strategies is a wise approach. Having multiple options provides built-in risk protection — a smart play for Minnesota real estate investors.

Who Uses Bridge Loans?

Bridge loans are widely used by two key groups of real estate investors across Minnesota:

• Fix-and-flip investors who purchase, renovate, and resell properties for profit.

• Rental property investors who follow the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) to build long-term rental portfolios.

Pro tip: Learn more about our Fix and Rent bundle — a combination of a bridge loan for the acquisition and rehab phase, followed by a discounted DSCR loan for the refinance. It’s designed to optimize your financing process.

As mentioned earlier, many Minnesota investors use a hybrid approach. They may flip some properties while holding others as rentals, depending on how each project unfolds. This flexible strategy is a best practice we see among successful investors statewide.

Bridge Loan Program Guidelines

Project Eligibility

At OfferMarket, our mission is to support your journey toward building wealth through real estate — and a big part of that is helping you manage risk effectively.

Our lending business boasts an industry-leading default rate of less than 0.5% across all originated loans, and we take pride in contributing to the success of our Minnesota investors. This low default rate isn’t accidental — it’s the result of careful project selection, clear expectations, and sound risk management.

We’ve found that inexperienced investors who take on “heavy” or “extensive” rehab projects are at the highest risk of financial trouble. These large-scale renovations are often plagued by delays, unexpected costs, and shifting market conditions — even seasoned investors can find themselves underwater on such deals, particularly during periods of economic uncertainty.

As your bridge lender in Minnesota, we see ourselves not just as a funding source but as your strategic partner — offering deal guidance, risk assessment, and capital support. To keep your real estate business on solid footing, we’ve developed a structured rehab scope classification system that determines eligibility based on project complexity and your experience level.

Initial Advance

Your initial advance is determined by a blend of your personal qualifications and the specific details of your Minnesota real estate deal.

Key factors we consider:

• Number of investment properties you’ve owned in the last 24 months

• Number of similar completed rehab projects within the past 5 years

• Minimum credit score of 680 (though we strongly prefer 720+ for the personal guarantor)

We offer increased leverage for Realtors, General Contractors, and Professional Engineers, recognizing the value of their experience and expertise.

If the purchase price exceeds the appraised As Is value, we base your initial advance on the lower appraised value — not your contract price. This ensures conservative lending and protects both your investment and ours.

Your planned exit strategy also plays a role:

• If your plan is to sell the property, we expect at least a 30% gross margin and a minimum projected profit of $15,000.

• If your strategy is to rent and refinance (or if your flip plan doesn’t meet the margin threshold), your projected DSCR after repairs must be at least 1.1.

We also apply special rules for rural properties in Minnesota. For rural-designated projects, your initial advance will be limited, and you’ll need a minimum experience level of 3.

Experience-Based Tiers

Initial Advance by Tier

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

Adjustments to Initial Advance

The table below outlines common scenarios that may affect your initial advance percentage for your Minnesota bridge loan:

Rehab Scope Classification

At OfferMarket, we carefully assess the scale and complexity of your rehab project before determining eligibility for our Minnesota bridge loan program. Here’s how we classify the rehab scope:

* A "lopsided deal" occurs when the As Is value or the purchase price is lower than the rehab budget. See the LTFC Limits section for more on how this affects lending terms.

Rehab Scope Eligibility

Your eligibility for different rehab scopes in Minnesota depends on your experience tier. Because heavy and extensive rehab projects come with higher execution risks, eligibility tightens accordingly to keep your investments safe.

We recommend focusing on light or moderate rehab projects, especially if you're newer to real estate investing in Minnesota. These quicker-to-complete projects reduce your exposure to delays, budget overruns, and market fluctuations.

LTARV Limits

The maximum Loan-to-After-Repair Value (LTARV or ARLTV) for your Minnesota bridge loan is determined by your experience tier and the rehab scope classification.

This system ensures that lending terms stay aligned with your experience and the project's risk level, helping you safely navigate the Minnesota investment landscape.

LTFC Limits

Loan-to-Full-Cost (LTFC) limits apply specifically to extensive rehab projects, where the renovation budget exceeds the property's purchase price. This guideline ensures that both borrower and lender remain financially protected by maintaining balanced project funding.

For extensive Minnesota rehab projects, LTFC limits ensure that you, as the investor, retain meaningful "skin in the game," helping mitigate the risks associated with high-cost renovations.

Example: No Experience

Example: No Experience, Excellent Credit

Example: 5 Experience

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

At OfferMarket, we typically structure our Minnesota bridge loans around your cost basis — meaning the total of your purchase price plus any sunk costs like renovation expenses. This approach helps ensure that you retain equity in the project and reduces risk exposure on both sides.

However, there are scenarios where the current As Is value of your Minnesota property exceeds your cost basis. In these cases, we may consider lending against the As Is value, provided certain conditions are met.

Criteria for As Is Value Refinance:

• Property must be habitable, with at least a C4 condition rating — properties in significant disrepair do not qualify.

• Minimum seasoning of 3 years for the property.

• Any payoff lender should not be a bridge or construction lender, and the payoff amount must not include default interest, late fees, or excessive extension charges.

• Minimum credit score of 680.

• Experience Tier of 3 or higher (at least four similar completed rehab projects).

• Market comps must clearly support the As Is value exceeding the cost basis.

• Scenario must make sense — for example, the property was rented for several years, the tenants have vacated, and now renovation is needed before listing it for sale.

This structure helps Minnesota investors unlock trapped equity in seasoned properties while maintaining a sound financial footing.

Transactions Involving Wholesalers and Price Run-Ups

When your Minnesota real estate project involves a wholesaler or includes a price increase through assignment fees or double closes, OfferMarket provides clear guidelines to determine how these fees factor into your financing.

Wholesaler Transaction Guidelines:

• Assignment fees or double-close price increases can be included in your cost basis, but only up to 20% of the original purchase price between the wholesaler and the seller.

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

• Full chain of contracts and assignments is required (A-B contract and B-C contract).

• Wholesaler’s operating agreement must be provided.

• The transaction must be at arm’s length — no personal relationships between parties.

• Finder’s fees and referral fees are not eligible for financing.

• If the property was listed on the MLS, assignment fees or run-ups may not be included in financing.

Example:

In this example, because the assignment fee is within 20%, it qualifies for inclusion in your financing package.

Construction Holdback

The construction holdback component of your Minnesota bridge loan is designed to fund your renovation work through draw reimbursements. Funds are released as work is completed and verified against your submitted scope of work.

If you prefer to fund your rehab using your own capital, you can choose not to include a construction holdback in your loan.

If your total loan amount is $100,000 or higher, interest will only accrue on the funds disbursed — known as "As Disbursed" interest accrual. Loans below $100,000 use the "full boat" method where interest applies to the entire loan amount from day one.

Draw Processing Guidelines:

Appraisal and In-House Valuation

Every Minnesota bridge loan through OfferMarket requires a property valuation to support your loan request. Depending on the specifics of your project, this may be a third-party interior or exterior appraisal, or an in-house valuation.

In-House Valuation Eligibility:

OfferMarket reserves the right to require a formal appraisal even if you meet the in-house valuation criteria.

Exterior Appraisal

An exterior appraisal may be acceptable in the following Minnesota scenarios:

• REO sales

• Foreclosure auctions

• Sheriff’s sales

• Online auctions

• Bankruptcy sales

Exterior appraisals must be dated within 120 days of closing. If between 120 and 179 days, a recertification is required.

Interior Appraisal

If your Minnesota investment scenario does not qualify for in-house or exterior appraisal, a full interior appraisal will be required.

OfferMarket handles the appraisal order through an appraisal management company (AMC). You will be responsible for paying the AMC invoice. If the invoice remains unpaid, your loan request will be placed on hold until payment is completed.

Appraisal Transfer

Appraisals not originally ordered by OfferMarket can be transferred for use in Minnesota, provided all of the following conditions are met:

• The appraisal was ordered through an approved Appraisal Management Company (AMC).

• The appraisal is no more than 180 days old as of the closing date of the OfferMarket loan.

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

• The transferring lender must supply OfferMarket with the following documentation:

  • A signed transfer letter that includes the certification:

    “Lender certifies that the Appraisal was ordered and processed in compliance with the Appraiser Independence Requirements (AIR).”

  • A copy of the appraisal report in PDF format

  • A copy of the appraisal report in XML format

  • The appraisal invoice as proof that the appraisal has been paid for

Stabilized Bridge Loan – Scenario Overview

A Stabilized Bridge Loan applies when the subject property is in solid condition—free of deferred maintenance—and receives an appraisal condition rating of C4 or better. In this case, OfferMarket will base the appraisal on an "As Is" value and can fund up to 75% of that value.

This type of loan is ideal when the property is already stabilized and is ready for rental or resale.

Key Loan Details

Extensions

Bridge loans are designed to be short-term (typically 12–24 months), with most loans being paid off within 12 months. Extending your loan is discouraged because extensions incur additional fees, interest, and risk of foreclosure if unpaid after the extension limit.

To minimize the need for extensions, avoid:

• Hiring general contractors with limited experience and references

• Taking on an aggressive rehab scope beyond your team's experience and liquidity

• Investing in markets with slow zoning and permitting

• Acquiring properties where immediate access is restricted (e.g., existing tenants, eviction needed)

• Failing to have a dual exit strategy (sell or refinance)

By mitigating these risks, you can greatly improve your project’s timeline.

Extension Policy

Extension Requests: Extensions can be requested in 3-month and 6-month increments.

Extension Fee Schedule:

Extension Prerequisite: You must have a valid builder’s risk insurance policy covering the extended term.

Ineligible Property Types

The following property types are not eligible:

• Mixed-use properties

• 5+ unit multifamily

• Condotels, co-ops

• Mobile or manufactured housing

• Commercial properties

• Cabins, log homes

• Properties with oil/gas leases

• Operating farms, ranches, orchards

• Vacation or seasonal rentals

• Unique, exotic, or luxury properties

• Properties with unpaved/dirt roads

Exception Scenarios

Exceptions may be considered for:

• Guarantor credit scores between 660–679

• Leasehold properties (ground rent)

• Single-family residences between 500–699 SQFT

• 2-4 unit properties with at least one unit between 400–499 SQFT

• Funding initial advance based on an As Is value higher than the cost basis

• Non-arm’s length transactions

• Financing of interest payments

Borrower and Guarantor Requirements

To ensure responsible lending and successful project execution for our Minnesota bridge loan program, OfferMarket sets clear eligibility standards for borrowers and guarantors.

Liquidity Verification

At OfferMarket, we place a strong emphasis on ensuring that Minnesota investors have sufficient liquidity to safely complete their projects. Our liquidity verification process confirms that the guarantor(s) collectively control enough assets to cover the estimated cash required at closing plus at least 25% of the rehab budget.

Eligible Liquid Assets:

• Personal bank accounts

• Business bank accounts (including borrowing entity accounts)

• Brokerage accounts (personal or business)

• Retirement accounts (valued at 50% due to restrictions on withdrawals)

Verification Process:

• Provide the two most recent statements for each qualifying account.

• No seasoning required for new accounts.

• Letter of explanation (LOE) required for large or unusual deposits.

This approach helps ensure your Minnesota bridge loan project is financially supported from start to finish, reducing your risk of delays due to cash shortfalls.

Credit and Background Items

When assessing eligibility for your Minnesota bridge loan, OfferMarket reviews credit scores, tradelines, and any background issues. Here’s what we look for:

• If three credit scores are reported, we use the middle score (second highest).

• If two scores are reported, we use the lower of the two.

• Borrowers with no mortgage tradelines must maintain at least six months of interest reserves.

• Fewer than five tradelines also requires six months of interest reserves.

• Bankruptcy must have been discharged at least four years prior to loan closing.

• Foreclosures must have been completed at least four years before closing.

• If bankruptcy or foreclosure occurred between four and seven years ago, three months of interest reserves are required.

• Any late mortgage payments in the past year will require a letter of explanation and may result in loan committee review.

• Past due balances on both mortgage and non-mortgage debts must be fully paid before funding.

• Involuntary liens or judgments (such as tax liens or child support) must also be resolved prior to funding.

• Pending civil lawsuits require a letter of explanation and are subject to approval.

• Pending criminal cases disqualify the applicant.

• History of financial or serious crimes leads to ineligibility.

• Repeat offenses require explanation and are subject to committee discretion.

Interest Reserves

Interest reserves are funds collected at closing and held in escrow to cover your monthly interest payments. If applicable to your Minnesota bridge loan, these reserves are drawn down before you are required to make direct payments from your account.

This structure provides flexibility while ensuring that your loan remains in good standing during the rehab period.

Financed Interest Payments

Minnesota investors using OfferMarket bridge loans may be eligible for financed interest payments — an option designed to protect your liquidity during the renovation phase.

Instead of making monthly interest payments out of pocket, your accrued interest can be added to your loan balance and paid at loan payoff.

Example:

This option helps keep your rehab projects on track without straining your cash flow.

Property Sourcing Guidelines

For Minnesota real estate projects, OfferMarket sets clear guidelines to ensure quality sourcing and proper documentation:

• New market transactions require a General Contractor agreement or a Letter of Explanation if no GC is being used.

• Wholesale deals, price run-ups, and non-arm’s-length transactions require additional review and documentation.

• For condo projects, condo conversions, or major renovations, we may require letters from architects, engineers, or relevant permits.

• Required documentation includes purchase contracts, settlement statements, payoff letters (if refinancing), track record of completed projects, and formation documents for the borrowing entity.

Proper documentation helps ensure a smooth funding process for your Minnesota bridge loan.

Bridge Loan Insurance Guidelines

Securing proper insurance coverage is a key part of responsible investing — and it’s required for all Minnesota bridge loans through OfferMarket. This specialized insurance bundle, often called Builders Risk or Fix and Flip insurance, protects both your property and your liability exposure.

Coverage Types and Required Limits:

Coverage Details

💡 Pro tip: To ensure your coverage remains valid, install smoke detectors, locks, and security cameras immediately after taking ownership of the property.

Frequently Asked Questions

What states does OfferMarket fund bridge loans?

Alabama
Arizona*
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

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

Absolutely! Many of our Minnesota investors manage multiple bridge loans at once. Whether you’re handling several flips or juggling BRRRR projects across different markets, it’s common to have several loans active.

That said, we remain committed to helping you manage risk responsibly. If your liquidity or the pace of your current projects suggests that additional loans may increase your risk, we will proactively work with you to ensure your financial safety.

Are bridge loans considered commercial loans?

Yes. Bridge loans through OfferMarket — including those offered in Minnesota — are categorized as business purpose loans. Because these loans are issued to your borrowing entity (such as your LLC or Corporation), they are classified as commercial rather than consumer loans.

What is the minimum loan amount?

The minimum bridge loan amount is $25,000. This applies across all eligible markets, including Minnesota.

Which property types are eligible for funding?

Eligible properties for Minnesota bridge loans include:

• Non-owner-occupied 1–4 unit residential real estate

• Single-family homes

• 2–4 unit multifamily properties

• Warrantable condos, townhomes, and Planned Unit Developments (PUDs)

Note:

• 5–9 unit multifamily and mixed-use properties may be eligible under different loan programs at OfferMarket but are not covered by this specific bridge loan product.

• Properties with 10+ units or non-residential commercial assets (such as retail, office, or industrial) are not eligible under this program.

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

For Minnesota bridge loans, we use two key metrics:

• LTV (Loan-to-Value): Based on the As Is value of the property.

• LTARV (Loan-to-After-Repair Value): Total loan amount (initial advance plus construction holdback) divided by the appraised after-repair value.

The initial advance will be based on the lower of your purchase price or the As Is value from the appraisal. This helps maintain a conservative lending approach and ensures you maintain equity throughout the project.

What credit requirements apply?

We require a minimum FICO score of 680 for borrowers and guarantors in Minnesota. Applicants with scores between 660–679 may be considered on an exception basis.

We evaluate the credit of all individuals who are personally guaranteeing the loan — members of your borrowing entity who are not guarantors are not subject to credit review.

Are there experience requirements?

No prior experience is required to qualify for a Minnesota bridge loan through OfferMarket. However, your level of verifiable experience directly impacts your loan terms through our tiered system:

• More experience may qualify you for higher leverage (initial advance percentages).

• Less experience may limit your eligibility for heavy or extensive rehab projects.

Once you submit your Track Record in your Loan File, our team will review and verify your past projects to determine your experience tier.

Does wholesaling experience count toward the experience requirement?

No. Wholesaling does not count toward your experience score for Minnesota bridge loans because wholesalers are not financially responsible for executing the rehab. Only completed rehab projects where you were the responsible party qualify toward your experience tier.

What documentation is required?

OfferMarket’s streamlined Loan File system makes the document collection process efficient and user-friendly. Once uploaded, these documents stay securely stored to simplify your future loan applications.

Documentation for Purchase Transactions

Documentation for Refinance Transactions

Are there additional requirements for loans over $1 million?

Yes. For Minnesota bridge loans over $1 million (up to our $2 million maximum), these enhanced guidelines apply:

Glossary of Key Terms

Instant Bridge Loan Quote

At OfferMarket Capital LLC, we specialize in providing bridge loans and DSCR loans for 1–4 unit residential real estate investors throughout Minnesota and beyond. Our mission is to be your trusted partner, empowering you to grow your wealth through real estate with the right funding solutions.

Thousands of real estate investors across the country rely on OfferMarket each month — and membership is 100% free.

When you join OfferMarket, you gain access to:

💰 Fast, reliable private lending options
☂️ Competitive insurance rate shopping
🏚️ Exclusive off-market property opportunities
💡 Market insights to support smarter investing decisions

Ready to take the next step in your Minnesota real estate journey?
Get your instant bridge loan quote today and discover why so many investors trust OfferMarket as their lending partner.

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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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