Mississippi Bridge Loan Program

Last Updated: April 30, 2025

At OfferMarket, we are dedicated to helping you grow your wealth through strategic real estate investing. To support your success on this journey, we bring you an all-in-one platform designed to streamline every aspect of your investment process:

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

Our Mississippi Bridge Loan program is crafted to offer swift, reliable, and cost-effective financing for acquiring and enhancing 1 to 4-unit residential investment properties throughout the state.

Whether your plan is to renovate and flip for a quick return or to hold and refinance into a DSCR loan for long-term rental income, we’re here to earn your trust and play a key role in your investment achievements.

Join us as we explore the details of the OfferMarket Mississippi Bridge Loan Program!

What is a Bridge Loan?

A bridge loan serves as a short-term financing option, offering immediate capital to bridge the gap until longer-term financing is secured.

Common Uses for Bridge Loans

Among Mississippi real estate investors, bridge loans are frequently used in scenarios like these:

• Purchasing and updating a distressed or outdated property — you secure financing to acquire and rehab without depleting your own cash reserves.

• Refinancing a property bought with cash to unlock funds for renovations — maybe you secured a deal on an off-market property with a seller who needed a fast cash closing, and now you’re ready to access those funds and start your project.

• Paying off an existing loan on a property that still needs work — for example, your original private lender needs to be repaid, but you’re not finished with the rehab or ready for your exit strategy.

• Buying a property with no plans to renovate — perhaps you’re purchasing undervalued properties in Mississippi to resell them “as is” for a profit.

• Refinancing a cash purchase without renovation plans — you locked in a below-market deal and now want to tap into your equity to fund your next opportunity.

• Refinancing an existing loan on a fully rehabbed property — the updates are complete, but you need a bit more time to either sell or refinance into longer-term financing.

In the real estate investment world, bridge loans are often referred to as “hard money loans” or “fix-and-flip loans” — these terms are commonly used interchangeably among investors and private lenders alike.

How It Works

A Mississippi bridge loan is built around two core components that give you the flexibility you need:

Initial Advance – This portion of the total loan amount is allocated toward the purchase of the property and is wired directly to the title company at closing.

Construction Holdback – This part of the loan is reserved for your rehab budget and is released to you through draw reimbursements as work progresses.

What makes bridge loans so adaptable is that you have the freedom to choose the structure that suits your project. If you only require funds for the purchase, you can opt for just the initial advance. If your focus is solely on the renovation, you can go with a construction holdback alone.

In reality, many Mississippi investors choose a combination of both the initial advance and the construction holdback to maximize leverage and limit out-of-pocket expenses. Some seasoned investors prefer to fund renovations themselves and therefore only utilize the initial advance. Others may purchase with cash and use the construction holdback to fully finance the rehab portion of their project.

With a Mississippi bridge loan, the structure is as flexible as your investment strategy.

Choosing Your Exit Strategy

When it comes to how you’ll exit your Mississippi bridge loan, there are typically two main routes: flip the property for a profit, or hold it as a rental and refinance into a longer-term loan like a DSCR loan.

It’s common for real estate investors to shift their strategy as market conditions evolve. You don’t have to lock yourself into a decision upfront — keeping your options open can be a smart way to protect your investment.

For example, you might begin a project planning to execute the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat), but if you find that the local rental demand isn’t as strong as expected, selling the property could yield a higher return. On the flip side, you might start off planning to flip but decide to hold the property as a rental if the resale market cools down.

Having a backup plan — a dual exit strategy — is one of the best ways to manage risk effectively in your Mississippi real estate projects.

Who Uses Bridge Loans?

Bridge loans are a go-to tool for a variety of Mississippi real estate investors, including:

Fix and Flip Investors ("Flippers") – Those who specialize in purchasing undervalued properties, improving them, and selling for a profit.

Rental Property Investors (BRRRR Method) – Investors who buy properties, renovate, rent them out, and refinance to recover their capital and keep building their portfolios.

(Pro tip: Be sure to check out our Fix and Rent bundle — a bridge loan for the purchase and rehab phase, followed by a discounted DSCR loan for the refinance phase.)

As mentioned earlier, many investors combine strategies, choosing to flip some properties and hold others based on how their projects and the market play out. This hybrid approach is a best practice we frequently observe among our clients.

Bridge Loan Program Guidelines

Project Eligibility

At OfferMarket, we’re committed to helping you grow your real estate portfolio while managing risk responsibly. Across our lending history, fewer than 0.5% of all originated loans have resulted in foreclosure. This exceptional track record reflects our focus on your success and the health of your investment.

Taking on complex renovation projects, especially with limited experience, carries significant risks. Heavy or extensive rehabs are prone to delays, budget overruns, and unforeseen market shifts — risks that even seasoned investors can find challenging.

Our role as your Mississippi bridge lender is more than just providing capital. We act as your deal partner, risk advisor, and financial backer. Clear expectations and smart project selection empower you to scale your business safely.

To support this, we use a structured rehab scope classification system to assess eligibility based on the complexity of your project.

Initial Advance

The initial advance in your Mississippi bridge loan is determined by a combination of borrower qualifications and deal-specific factors. Here’s what we consider:

• The number of investment properties you’ve owned over the past 24 months.

• The number of similar rehab projects you’ve successfully completed in the last 5 years.

• Minimum required credit score: 680 (with preference for 720+ for the personal guarantor).

We offer enhanced leverage for borrowers who are licensed Realtors, General Contractors, or Professional Engineers.

If the agreed purchase price exceeds the As Is value established by our appraisal or valuation, the initial advance will be calculated based on that As Is value, not the contract price.

Your intended exit strategy also plays a role. If you plan to sell, we require a minimum projected gross margin of 30% and at least $15,000 in profit. For rental refinance or if your flip margins don’t meet these thresholds, the DSCR after repairs must be a minimum of 1.1.

Additionally, properties classified as rural will have limited leverage options and require at least Tier 3 experience.

Experience-Based Tiers

Initial Advance by Tier

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

Adjustments to Initial Advance

The percentage of your initial advance may be adjusted based on several key factors related to both your borrower profile and your project details. Here’s how those adjustments may apply:

Rehab Scope Classification

We categorize rehab projects into different scopes based on the size of your renovation budget relative to the purchase price. This allows us to properly assess project complexity and ensure smart lending decisions.

* A “lopsided deal” refers to situations where the As Is value or purchase price is less than the rehab amount. These deals are subject to specific LTFC limitations as outlined below.

Rehab Scope Eligibility

Your eligibility for various rehab scopes depends on your experience tier. We strongly encourage focusing on lower-scope projects (commonly known as “cosmetic rehabs”), especially for less experienced investors, to minimize risks and avoid costly setbacks.

LTARV Limits

Your maximum Loan-to-After-Repair-Value (LTARV or ARLTV) is determined by your experience tier and the classification of your rehab project. This ensures responsible lending and protects both you and your investment.

LTFC Limits

For projects where the rehab budget exceeds the purchase price — classified as “Extensive” — we apply Loan-to-Full-Cost (LTFC) limits to maintain balanced leverage and ensure borrower commitment.

An LTFC of 85% means we’ll fund 85% of your total project cost (purchase price plus rehab budget), while you cover the remaining 15%. This helps ensure alignment and accountability on high-risk deals.

Example: No Experience

Example: No Experience, Excellent Credit

Example: 5 Experience

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

Our standard Mississippi bridge loan underwriting focuses on lending against your cost basis — meaning the total purchase price plus any capital expenditures. This approach ensures you retain significant equity in your project.

However, if you're seeking a refinance on a seasoned property where the current As Is value exceeds your original cost basis, we may offer flexibility based on these conditions:

• Property must be habitable and rated C4 condition or better (not in disrepair).

• Ownership history of at least 3 years.

• If paying off an existing loan, the current lender must not be a bridge or construction lender and should not have default interest, late fees, or extension penalties.

• Guarantor credit score of 680 or higher.

• Experience Tier of 3 or higher (minimum of 4 similar completed projects).

• Strong market comps supporting As Is valuation above cost basis.

• Scenario must support the refinance case (e.g., property was rented for several years, tenants vacated, now prepping for resale after light renovations).

Transactions Involving Wholesalers and Price Run-Ups

When dealing with wholesale transactions or scenarios where there is a price markup between the wholesaler and the original owner, OfferMarket applies specific guidelines to ensure transparency and risk management.

If your deal involves a wholesaler assignment fee or a double-closing markup, the following conditions apply:

• The markup (assignment fee or price run-up) may be included in the value basis for your initial advance but is capped at 20% above the original purchase price between the wholesaler and the seller.

• Any amount exceeding this 20% limit will not be financed by OfferMarket — you’ll be responsible for covering that portion.

Example scenario:

Additional Wholesale Transaction Requirements:

• Full chain of contracts (A-B and B-C) and wholesaler’s operating agreement.

• Arm's length transaction verification.

• OfferMarket will not finance finders’ fees or referral fees.

• If the property was listed on the MLS, the assignment fee may not be included in the financed amount.

Construction Holdback

Your construction holdback funds will be made available to you through draw reimbursements as you complete stages of your rehab work. This ensures that capital is deployed responsibly and in line with project progress.

If you have the liquidity to fund your renovations without requiring a holdback, you have the option to decline this component of the loan altogether.

Additionally, for loans of $100,000 or more, interest will only accrue on drawn construction holdback funds — protecting your cash flow.

Appraisal and In-House Valuation

All Mississippi bridge loan requests require a valuation of the subject property. Depending on the project and borrower profile, this may take the form of:

• A third-party interior appraisal.

• A third-party exterior appraisal.

• An in-house valuation by OfferMarket.

In-House Valuation Eligibility

OfferMarket retains the right to request a full interior or exterior appraisal at its discretion, even when in-house valuation might otherwise be an option.

Exterior Appraisal

Exterior-only appraisals are allowed for the following types of transactions:

• Real Estate Owned (REO) sales.

• Foreclosure auctions.

• Sheriff’s sales.

• Online auction purchases.

• Bankruptcy sales.

Important: Exterior appraisals must be dated within 120 days of your closing date. If the report is between 120 and 179 days old at the time of closing, a recertification will be required.

Interior Appraisal

If your deal does not fall under the exterior appraisal categories or in-house valuation eligibility, a full interior appraisal will be required. Below are the forms needed by property type:

OfferMarket will handle appraisal ordering through our approved appraisal management companies (AMCs). You will be responsible for paying the AMC invoice before the process moves forward. Loans with unpaid appraisal invoices will be placed on hold.

Appraisal Transfer

If you've already completed an appraisal with another lender and wish to transfer it for use in your Mississippi bridge loan application, OfferMarket can accommodate this — provided specific conditions are met:

• The appraisal was ordered through an approved appraisal management company (AMC).

• The appraisal report is less than 180 days old at the time of closing.

• For appraisals between 120 and 179 days old, a recertification is required.

• The transferring lender must supply OfferMarket with:

  • A signed transfer letter confirming compliance with Appraiser Independence Requirements (AIR).

  • The full appraisal report in both PDF and XML formats.

  • Proof of payment for the appraisal invoice.

Scenario: Stabilized Bridge Loan

If your Mississippi investment property is in stable condition — meaning there is no deferred maintenance and the appraisal condition rating is C4 or better — you may qualify for what we call a Stabilized Bridge Loan. This allows us to fund up to 75% of the property's As Is value.

This program is ideal for Mississippi investors with rental-ready or market-ready properties who want fast, simple financing without renovation holdbacks.

Key Loan Details

* Loans above $1M are subject to specific eligibility guidelines.

Extensions

Bridge loans are meant to be short-term solutions — typically between 12 and 24 months. However, if your project timeline extends beyond your original term, we offer the ability to request an extension.

While extensions provide flexibility, it’s important to understand that they come with added costs and risks, including the possibility of foreclosure if the loan remains unpaid after the extension period expires.

The best way to avoid needing an extension is by managing key risk factors such as:

• Selecting experienced contractors with solid references.

• Keeping your rehab scope realistic relative to your experience and liquidity.

• Avoiding markets with sluggish permitting or zoning timelines.

• Ensuring you have full access to the property without tenant issues or eviction delays.

• Prioritizing properties that allow for a dual exit strategy (sell or refinance).

Extension Limits

If you reach the end of your Mississippi bridge loan term without payoff, here’s how extension options break down:

Extensions can be requested in either 3-month or 6-month increments, and associated fees will apply.

Extension Terms and Fees

Extension costs are added directly to your payoff statement according to the following schedule:

Before approving an extension, we’ll confirm that your builder’s risk insurance policy is active and covers the entire requested extension period.

Ineligible Property Types

Our Mississippi bridge loan program is specifically designed for non-owner occupied 1‑4 unit residential investment properties. The following property types are not eligible for this financing option:

• Mixed-use properties

• Multifamily properties with 5 or more units

• Condotels

• Co-ops

• Manufactured or mobile homes

• Commercial real estate (including retail, office, industrial)

• Cabins or log homes

• Properties with oil or gas leases

• Working farms, ranches, or orchards

• Vacation rentals or seasonal homes

• Exotic, luxury, or unique properties

• Properties accessed by unpaved or dirt roads

Exception Scenarios

While we maintain strict guidelines to ensure smart lending and minimize risk, certain exceptions may apply under specific conditions:

• Guarantor credit scores between 660 and 679

• Leasehold (ground rent) properties

• Single-family homes sized between 500 and 699 square feet

• 2–4 unit properties with one or more units between 400 and 499 square feet

• Loans where initial advance is based on As Is value that exceeds the cost basis

• Non-arm’s length transactions

• Financed interest payments where applicable

Each exception scenario is reviewed individually and may require additional documentation, underwriting review, and/or reserve requirements.

Borrower and Guarantor Requirements

To qualify for a Mississippi bridge loan with OfferMarket, the following borrower and guarantor criteria apply:

Liquidity Verification

To promote financial safety and reduce default risk, OfferMarket verifies that borrowers possess enough liquidity to cover both the cash needed to close and at least 25% of the rehab budget.

Accepted liquid assets include:

• Personal or business bank accounts

• Bank accounts held by the borrowing entity or other owned entities (with verification of operating agreement)

• Brokerage accounts (personal, business, or entity-owned)

• Retirement accounts (subject to a 50% reduction to reflect liquidity restrictions)

Good news: You are not required to transfer or season these funds in specific accounts. Proof of liquidity through account statements is sufficient.

Credit and Background Items

Our credit review process is designed to ensure that you’re positioned for success. Here’s how we evaluate your credit and background profile for your Mississippi bridge loan:

Interest Reserves

In certain situations, OfferMarket may require interest reserves — funds held in escrow to cover interest payments for a set period. This helps ensure stability throughout the life of your Mississippi bridge loan.

Interest reserves, if required, are drawn down first before you begin making out-of-pocket interest payments.

Financed Interest Payments

To help protect your liquidity during your Mississippi bridge loan project, you may qualify for financed interest payments. This feature allows your accrued interest to be added directly to your payoff balance instead of requiring monthly payments from your personal cash flow.

This option is especially helpful for investors who prefer to keep their capital working in the project rather than setting aside funds for monthly interest payments.

Example of Financed Interest Payment Calculation:

This structure allows you to focus on completing your project without the stress of making monthly payments during the rehab phase.

Property Sourcing Guidelines

OfferMarket is committed to helping Mississippi investors select quality deals that support successful outcomes. Here are the sourcing guidelines we follow for bridge loan project eligibility:

• For new market transactions, we require either a signed General Contractor agreement or a detailed letter explaining why a GC is not needed.

• Wholesale deals, prior sale price increases, or non-arm’s length transactions will be subject to additional documentation and underwriting review.

• Condo projects, condo conversions, or significant renovation deals may require architect or engineer sign-off or relevant permits.

For all transactions, make sure to submit:

• Fully executed purchase contracts.

• Settlement statements and payoff letters (if refinancing).

• Documentation of your investment track record.

• Borrowing entity formation documents.

These requirements help ensure that every Mississippi bridge loan we fund is properly supported by a strong foundation of documentation.

Bridge Loan Insurance Guidelines

It’s essential to protect both your property and yourself from potential risks throughout your investment project. That’s why Mississippi bridge loans require proper insurance coverage, often referred to as Builders Risk Insurance or Fix and Flip Insurance.

This specialized coverage protects against property damage and liability risks, especially for properties that are under renovation, vacant, or in suboptimal condition.

Required Coverages and Limits

Coverage Details

💡 Pro tip: As soon as you take possession of your Mississippi property, make sure to install smoke detectors, locks, and security cameras. This not only protects your investment but also helps ensure your insurance claims will be honored if needed.

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

• Mississippi

• Missouri

• Minnesota*

• 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 these states, OfferMarket operates as a rate shopping service or loan referral partner where NMLS licensing for business-purpose lending is required.

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

Absolutely. Many of our Mississippi investors manage multiple bridge loans simultaneously. However, our top priority is your success — we will evaluate your liquidity, project pace, and overall risk exposure before approving additional loans.

Are bridge loans considered commercial loans?

Yes, bridge loans are classified as business purpose commercial loans. These loans are issued to your business entity (LLC or Corporation) and are not considered consumer loans.

What is the minimum loan amount?

The minimum loan amount for Mississippi bridge loans is $25,000.

Which property types are eligible?

Our Mississippi bridge loan program finances non-owner occupied 1‑4 unit residential properties, including:

• Single-family homes

• Townhomes

• Small multifamily properties (2‑4 units)

• Warrantable condominiums

Note: Mixed-use properties, 5+ unit multifamily, and certain other property types are not eligible under this program but may be financed through other loan options offered by OfferMarket.

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

For Mississippi bridge loans, Loan-to-Value (LTV) typically refers to the Loan-to-After-Repair-Value (LTARV) — calculated as:

LTARV = Total loan amount (initial advance + construction holdback) ÷ After-repair value (ARV)

The initial advance itself is based on the lower of either the As Is value (per appraisal) or the contract purchase price.

What are the credit requirements?

A minimum FICO score of 680 is required for your Mississippi bridge loan application. Borrowers with credit scores between 660 and 680 may still be considered on an exception basis.

We evaluate the credit scores of all members of the borrowing entity who are personally guaranteeing the loan.

What are the experience requirements?

When it comes to securing a Mississippi bridge loan through OfferMarket, experience is not a barrier to entry. While prior investment experience is not required, having a track record of successful rehab projects can qualify you for higher leverage under our experience-based tier system.

The more documented projects you've completed — particularly those involving similar rehab scope — the more flexibility you’ll have when it comes to initial advance percentages and loan-to-value limits.

Once you complete the Track Record section of your Loan File, our underwriting team will carefully review your past projects. We may request supporting documents such as settlement statements or operating agreements to confirm your direct involvement.

Does being a wholesaler count toward experience?

If your role in previous deals has been purely as a wholesaler — meaning you were not financially responsible for executing the rehab or managing the project — those transactions will not count toward your experience score.

Our experience tier system is specifically based on verifiable completed rehab projects where you actively managed the construction and financial aspects of the deal.

What documentation is required?

At OfferMarket, we've designed our Loan File system to make the application and approval process as smooth and efficient as possible. The documentation required for your Mississippi bridge loan depends on whether you're applying for a purchase loan or a refinance loan.

Documentation submitted for one loan can often be reused for future applications, making it easier for you to move quickly on your next investment opportunity.

Purchase Transaction Documentation

Refinance Transaction Documentation

Are there special requirements for loans over $1 million?

Yes. For Mississippi bridge loans above $1 million, we apply enhanced eligibility standards to ensure appropriate risk management. Here’s what you’ll need:

Criteria	Requirement
Experience	Minimum Tier 3 (3 or more similar completed projects)
Market Liquidity	At least 3 comparable sales within a 2-mile radius sold in the last 6 months
Credit Score	Minimum 680 FICO, with at least 5 trade lines showing 24-month history
Rural Designation	Not eligible if property is designated rural by CFPB, USDA, or appraisal report
Track Record	Detailed history for each member of the borrowing entity involved

Term	Definition
ADU	Accessory Dwelling Unit — a self-contained unit on the same parcel as the primary residence
Arm's Length Transaction	A deal between unrelated parties, ensuring fair market terms
Non-Arm's Length Transaction	A deal between parties with a personal, financial, or business relationship that may affect pricing or terms
Initial Advance	The portion of the loan allocated to property purchase, disbursed at closing
Construction Holdback	Funds allocated for rehab work, released via draw reimbursements based on progress
Interest Reserves	Interest payments collected upfront and held in escrow to cover loan interest obligations
LOE	Letter of Explanation — documentation provided to clarify issues like large deposits, credit problems, or legal matters
LTC (Loan-to-Cost)	Ratio of loan amount to the total purchase price and rehab budget
LTFC (Loan-to-Full-Cost)	Loan amount relative to the combined cost of purchase and rehab in scenarios where rehab exceeds purchase price
LTV (Loan-to-Value)	Ratio of loan amount to the current As Is property value
LTARV (Loan-to-After-Repair Value)	Ratio of loan amount to projected after-repair value (ARV)
As Disbursed Interest	Interest accrues only on the portion of the loan that has been funded (not the full loan amount)
Full Boat Interest	Interest accrues on the entire loan amount from day one (also called "Dutch Interest")
Lopsided Deal	A deal where rehab costs exceed the property’s As Is value or purchase price
GC Agreement	A formal contract between the borrower and a licensed General Contractor outlining project scope and responsibilities
DSCR	Debt Service Coverage Ratio — a key metric comparing property income to debt obligations (Rent ÷ PITIA)