Bridge Loan Tennessee
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Last Updated: May 2, 2025
At OfferMarket, we’re passionate about fueling your real estate success right here in Tennessee. Our mission is simple: help Volunteer State investors like you grow your portfolio, maximize returns, and navigate the investment landscape with confidence.
Through our fully integrated platform, you’ll have access to:
💰 Flexible private lending solutions
☂️ Insurance rate comparison tailored for investors
🏚️ Access to exclusive off-market Tennessee properties
Our Tennessee Bridge Loan program is designed to deliver fast, reliable, and affordable financing—so you can confidently purchase, renovate, and scale your residential investment projects across the state.
Whether you’re planning to flip properties for a quick profit or build long-term rental income through a BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy, OfferMarket is here to support your vision every step of the way.
What Is a Tennessee Bridge Loan?
A Tennessee bridge loan is a short-term financing solution crafted specifically for real estate investors who need quick capital to bridge the gap until a longer-term loan or exit strategy is secured.
Common Use Cases for Tennessee Bridge Loans
Investors across Tennessee use bridge loans for a variety of scenarios, including:
- Purchase and rehab of distressed properties: Secure the capital you need to buy and renovate homes without tying up your own cash.
- Refinance and renovate: Bought a fixer-upper with cash? Use a bridge loan to free up your equity and fund the renovation.
- Pay off an existing loan and finish the project: Need to repay your initial lender but still have renovations to complete? A bridge loan has you covered.
- Purchase without renovation: Acquire below-market Tennessee properties with no rehab plans, aiming for an AS-IS resale profit.
- Refinance a cash purchase (no rehab): Tap into your equity from a cash purchase, even if there’s no construction involved.
- Refinance an existing loan post-rehab: Completed your renovation but need extra time to sell or refinance? A bridge loan can buy you that breathing room.
In the investment world, bridge loans are often referred to as “hard money loans” or “fix-and-flip loans.” These terms are used interchangeably among seasoned investors and private lenders alike.
How Our Tennessee Bridge Loan Works
Every OfferMarket Tennessee bridge loan has two key components:
- Initial Advance: This portion of the loan covers your purchase price and is wired directly to the title company at closing.
- Construction Holdback: This is the portion reserved for your rehab budget. Funds are disbursed to you through a draw process as you make progress on your renovation.
The beauty of our program? Flexibility.
You can choose to use both the initial advance and construction holdback, or opt for just one—depending on your project needs.
Many Tennessee investors choose a combination of both to maximize leverage while conserving their own cash. However, if you plan to fund your rehab yourself or don’t intend to renovate, that’s perfectly fine too. Whether you're all-in on a full rehab or just need capital for the purchase, our program adapts to your strategy.
When it comes to real estate investing in Tennessee, flexibility is key. Our Tennessee Bridge Loan program gives you room to choose the right exit plan—even if that changes along the way.
Sell for Profit (Fix and Flip)
Plan to renovate and sell for a healthy profit? Our loan terms are built to help you stay agile, letting you maximize your return without being boxed into rigid financing.
Rent and Refinance (BRRRR Method)
Prefer to build wealth through long-term rental income? Acquire, rehab, rent it out, and refinance into a Debt Service Coverage Ratio (DSCR) loan—all while keeping your cash flow strong.
Who Benefits from Tennessee Bridge Loans?
Whether you’re a first-time investor or a seasoned pro, our Tennessee bridge loans are designed to meet you where you are:
Fix and Flip Investors (“Flippers”)
Ready to buy, rehab, and resell? Get fast access to the capital you need to keep projects moving.
BRRRR Method Investors (Buy, Rehab, Rent, Refinance, Repeat)
Looking to build your rental portfolio across Tennessee? Our Fix and Rent bundle pairs a bridge loan for acquisition and rehab with a discounted DSCR loan for your refinance.
Many successful Tennessee real estate investors use a mix of flipping and holding. Depending on the market conditions, you might flip one property and rent another. We encourage this flexible approach to maximize your opportunity while managing risk.
Tennessee Bridge Loan Program Guidelines
Here’s a clear breakdown of our lending criteria for Tennessee investors:
| Criteria | Guideline |
|---|---|
| Loan Amount (Min–Max) | $25,000 – $2,000,000 |
| After Repair Value (ARV) | Minimum $100,000 |
| Experience Requirement | None required |
| Minimum Credit Score | 680 |
| Borrowing Entity | LLC or Corporation (no personal loans) |
| Initial Advance | Up to 90% of purchase price |
| Construction Holdback | Up to 100% of rehab budget |
| Loan-To-ARV (LTARV) | Maximum 75% |
| Interest Rate | Instant quote available |
| Origination Fee | 1.5 to 2 points |
| Loan Term | 12 to 24 months |
| Prepayment Penalty | None |
| Structure | Interest-only with balloon payment |
| Recourse | Full recourse (51% of borrowing entity must guarantee) |
| Exit Strategy (Sale) | Minimum 30% projected ROI |
| Exit Strategy (Refinance) | Minimum 1.1 DSCR after repairs |
| Valuation Method | Appraisal report or in-house valuation |
| Minimum Property Size | Single family: 700+ SQFT, 2–4 unit: 500+ SQFT per unit, Condo: 500+ SQFT |
| Max Acreage | 5 acres |
| Interest Accrual | Under $100K: full loan amount ("Full Boat"); $100K and above: as disbursed |
| Advanced Draws | Subject to lender discretion |
| Minimum Down Payment | $10,000 |
Project Eligibility
At OfferMarket, our mission is to help Tennessee real estate investors build lasting wealth—safely and sustainably. That’s why our top priority is partnering with you on the right deals and helping you manage risk effectively.
Across all the loans we’ve originated, fewer than 0.5% have resulted in foreclosure. We take pride in this success rate because it reflects our commitment to responsible lending and your success as an investor.
It’s important to understand that projects with higher complexity—especially “heavy” or “extensive” rehabs—carry greater risk. These types of projects are more likely to encounter delays, cost overruns, and shifting market conditions that can impact profitability. This holds true even for experienced investors with strong financial backing, particularly during times of economic uncertainty.
At OfferMarket, we don’t just provide capital—we act as your deal advisor, risk manager, and financing partner. Setting clear expectations and aligning on project feasibility is key to helping you grow your Tennessee real estate business safely and successfully.
Initial Advance
The initial advance—the portion of your loan that covers the purchase price—is determined based on your experience level, credit score, and deal-specific factors.
We consider the following:
Number of investment properties owned in the last 24 months
Number of similar, verifiable rehab projects completed within the past 5 years
Minimum credit score of 680 (we prefer 720+ for personal guarantors)
Licensed professionals such as Realtors, General Contractors, or Professional Engineers may qualify for enhanced leverage
If the purchase price exceeds the appraised As Is value, the initial advance will be based on the As Is value—not the contract price.
Your exit strategy also impacts your initial advance:
For flip projects, a minimum 30% projected gross margin and $15,000 projected profit are required.
For rent and refinance scenarios, the post-repair DSCR should be at least 1.1.
Properties located in rural areas of Tennessee may have lower leverage limits and require a minimum experience level of 3 or higher.
Experience-Based Tiers
| Tier | Verifiable Experience |
|---|---|
| 1 | 0 completed projects |
| 2 | 1 to 2 completed projects |
| 3 | 3 to 4 completed projects |
| 4 | 5 to 9 completed projects |
| 5 | 10+ completed projects |
Initial Advance by Experience Tier
| Tier | Initial Advance (% of Purchase Price) |
|---|---|
| 1 | 80% (up to 85% with excellent credit/liquidity) |
| 2 | 85% |
| 3 | 85% |
| 4 | 90% |
| 5 | 90% |
Adjustments to Initial Advance
| Scenario | Adjustment |
|---|---|
| Credit score less than 720 | -5% |
| Full gut rehab | -5% |
| New market (first deal in the area) | -5% |
| Licensed Realtor | up to +5% |
| Licensed General Contractor | up to +10% |
| Licensed Professional Engineer | up to +10% |
| Rural property | -20% (requires 3+ experience) |
Rehab Scope Classification
| Rehab Scope | Definition |
|---|---|
| Light | Rehab budget is less than 25% of the purchase price |
| Moderate | Rehab budget is 25% to 49.99% of the purchase price |
| Heavy | Rehab budget is 50% to 99.99% of the purchase price |
| Extensive | Rehab budget is 100%+ of the purchase price — includes additions, expansions, ADUs, or situations where the rehab budget exceeds the purchase price (commonly known as “lopsided deals”) |
A "lopsided deal" refers to scenarios where the purchase price or As Is value is significantly lower than the rehab budget. For these projects, LTFC (Loan-To-Full-Cost) limits apply. See the LTFC Limits section for details.
Rehab Scope Eligibility
Your eligibility for various rehab scopes is based on your experience tier. This approach helps protect Tennessee investors from taking on projects with a higher risk of failure due to complexity or scope mismanagement.
| Tier | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Experience | 0 | 1–2 | 3–4 | 5–9 | 10+ |
| Light | Eligible | Eligible | Eligible | Eligible | Eligible |
| Moderate | Ineligible | Eligible | Eligible | Eligible | Eligible |
| Heavy | Ineligible | Eligible | Eligible | Eligible | Eligible |
| Extensive | Ineligible | Ineligible | Eligible | Eligible | Eligible |
We encourage newer Tennessee investors to focus on light and moderate rehab projects. These projects are typically completed faster and with fewer surprises, offering a smoother path to success.
LTARV Limits
The maximum Loan-To-After-Repair Value (LTARV) ratio is determined by your experience tier and rehab scope classification. This ensures that your loan aligns with the scale of the project and your proven track record.
| 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% |
LTFC Limits
For projects classified as Extensive rehab, we apply Loan-To-Full-Cost (LTFC) limits to ensure the borrower maintains meaningful skin in the game. LTFC represents the ratio of loan amount to total project cost (purchase price + rehab budget).
| 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% |
Example: No Experience
| Criteria | Details |
|---|---|
| Purchase Price | $100,000 |
| Experience Tier | 1 (0 similar verifiable projects) |
| Credit Score | 695 |
| Rehab Budget | $24,000 |
| ARV | $150,000 |
| Initial Advance | $75,000 (75% of purchase price) |
| Construction Holdback | $24,000 |
| Total Loan Amount | $99,000 |
| LTARV | 66% |
| LTFC | 79.8% |
| Interest Accrual | Full boat |
Example: No Experience, Excellent Credit
| Criteria | Details |
|---|---|
| Purchase Price | $100,000 |
| Experience Tier | 1 (0 similar verifiable projects) |
| Credit Score | 750 |
| Rehab Budget | $24,000 |
| ARV | $150,000 |
| Initial Advance | $80,000 (80% of purchase price) |
| Construction Holdback | $24,000 |
| Total Loan Amount | $104,000 |
| LTARV | 69.33% |
| LTFC | 83.9% |
| Interest Accrual | As disbursed |
Example: 5 Completed Projects
| Criteria | Details |
|---|---|
| Purchase Price | $100,000 |
| Experience Tier | 4 (5 similar verifiable projects) |
| Credit Score | 750 |
| Rehab Budget | $20,000 |
| ARV | $150,000 |
| Initial Advance | $90,000 (90% of purchase price) |
| Construction Holdback | $20,000 |
| Total Loan Amount | $110,000 |
| LTARV | 73.33% |
| LTFC | 91.67% |
| Interest Accrual | As disbursed |
Refinance Using As Is Value Instead of Cost Basis for Initial Advance
Our standard approach for underwriting bridge loans in Tennessee is to base your leverage on your cost basis—the total of what you paid for the property plus any rehab costs to date. This keeps equity in the deal and helps manage risk.
However, if your property’s current As Is value is higher than what you've put into it, we may offer financing based on that improved value. Here’s what we need to consider such a refinance:
Property must be habitable (C4 condition or better)
At least 3 years of seasoning
Original loan being paid off must not be a bridge or construction loan
Minimum credit score of 680
Minimum Tier 3 experience (4+ verifiable completed projects)
Strong local comps that support valuation
Background context (e.g., property was rented and is now vacant and rehab-ready)
Transactions Involving Wholesalers, Price Run-Ups
In Tennessee, it’s common to see deals where wholesalers play a role or where prices are marked up through double-close transactions. We’re experienced in these and support them within structured limits.
If your deal includes an assignment fee or marked-up pricing, we allow it as part of the cost basis—up to 20% over the original seller-to-wholesaler contract (A–B contract).
Example:
| Item | Amount |
|---|---|
| A–B Contract (Seller to Wholesaler) | $100,000 |
| B–C Contract (Wholesaler to You) | $125,000 |
| As Is Value | $125,000 |
| Eligible Value Basis for Initial Advance | $120,000 (20% markup max) |
Anything beyond the 20% threshold must be paid out of pocket.
To finance a wholesale deal, we’ll need:
A full paper trail (A–B and B–C contracts)
Wholesaler’s operating agreement
Proof that the deal is arm’s length (you’re not affiliated with the wholesaler)
Confirmation that the property is not listed on MLS at time of assignment
No financing for finder's or referral fees
Note: Markups above 20% may be reviewed case-by-case, but we won’t fund the overage.
Construction Holdback
The construction holdback is a separate portion of your Tennessee bridge loan reserved specifically for your renovation budget. These funds are released incrementally via a draw process after verified completion of scope-of-work items.
If you prefer to pay for the rehab out of your own pocket—or if no rehab is needed—you can opt out of the holdback feature entirely.
Interest Note:
If your total loan is $100K or more, you only pay interest on funds as they’re disbursed.
If your total loan is under $100K, interest is calculated on the full approved amount.
| Criteria | Guideline |
|---|---|
| Minimum Draw Amount | None |
| Maximum Draw Amount | 100% of remaining construction holdback |
| Minimum Number of Draws | 0 |
| Maximum Number of Draws | None |
| Materials Delivered but Not Installed | Up to 50% reimbursement (with receipt or invoice) |
| Draw Inspection | App-based (self-serve photo inspection) |
| Draw Turnaround Time | 0 to 2 business days |
| Draw Fee | $270 per draw |
| Wire Fee | $30 per wire |
Pro tip: Our draw system is quick and easy. Just upload photos to our app and get reimbursed within 48 hours in most cases—no waiting around for site visits.
Appraisal and In-House Valuation
Every Tennessee Bridge Loan we originate requires a valuation. Depending on your situation, this will be completed either via an external appraisal or through our internal valuation process.
In-House Valuation Eligibility
| Criteria | Requirement |
|---|---|
| Property Type | Single family, Duplex, Triplex, Quadplex |
| Experience Tier | 4 or higher |
| Credit Score | 720+ |
| Rural Property | Not eligible |
| New Market (first-time borrower in the area) | Not eligible |
| LTARV | 70% maximum |
We reserve the right to request a formal appraisal even if you meet the criteria above.
Exterior Appraisal Guidelines
Exterior appraisals are acceptable in these Tennessee property scenarios:
REO sale
Foreclosure or sheriff’s auction
Online or bankruptcy auction
They must be dated within 120 days of closing. If older than that (up to 179 days), we’ll need a recertification.
Interior Appraisal Guidelines
For Tennessee investment properties that don’t qualify for an exterior appraisal or in-house valuation, a full interior appraisal will be required. The exact forms depend on the type of property being financed.
| Property Type | Appraisal Forms Required |
|---|---|
| Single Family | 1004 + 1007 ARV with As Is value included (non-gridded) |
| 2–4 Unit Multifamily | 1025 + 216 ARV with As Is value included (non-gridded) |
| Condominium | 1073 + 1007 ARV with As Is value included (non-gridded) |
OfferMarket will order the appraisal through one of our trusted appraisal management companies (AMCs). The borrower is responsible for the appraisal invoice. If payment isn’t received, loan processing will be paused.
Appraisal Transfer
If you already have an appraisal that wasn’t ordered by OfferMarket, we may accept a transfer if all of the following conditions are met:
Ordered through an approved AMC
Completed within the last 180 days
If older than 120 days, it must be recertified
You’ll also need to provide:
A signed transfer letter with AIR (Appraiser Independence Requirements) compliance
Both PDF and XML copies of the appraisal
A paid invoice from the AMC
Scenario: Stabilized Bridge Loan
For Tennessee investment properties in strong condition and ready for rent or resale, our Stabilized Bridge Loan is a powerful option. It allows you to leverage your equity without requiring a rehab scope or construction budget.
| Criteria | Guideline |
|---|---|
| LTV (Maximum) | Tier 1: 70% Tier 2: 70% Tier 3: 75% Tier 4: 75% Tier 5: 75% |
| LTFC (Maximum) | Tier 1: 80% Tier 2: 80% Tier 3: 90% Tier 4: 90% Tier 5: 90% |
| Appraisal Condition Rating | C1, C2, C3, or C4 (must be habitable and stable) |
| Loan Term (Maximum) | 12 months |
Stabilized bridge loans are ideal for rent-ready or market-ready homes with no construction plans. This product helps Tennessee investors unlock short-term capital while finalizing a sale or long-term refinance.
Key Loan Details
| Criteria | Details |
|---|---|
| Loan Amount Range | $25,000 to $2,000,000* |
| Units per Property | 1 – 4 units |
| Eligible Property Types | Non-owner occupied 1–4 unit residential properties, including single-family homes, 2–4 unit multifamily, condos, townhomes, and PUDs |
| Minimum Property Size | Single Family: ≥700 SQFT Condo and 2–4 Unit: ≥500 SQFT per unit |
| Maximum Acreage | 5 acres |
| Loan to Cost (LTC) | Up to 90% purchase, 100% rehab |
| Loan to ARV (LTARV) | Up to 75% |
| Minimum Down Payment | $10,000 for purchases under $100K |
| Loan Term | 12 months standard; 18–24 months available for certain projects |
| Extensions | Up to 50% of the original term (extension fee applies) |
| Points (Origination Fee) | 1.5 to 2 points ($2,000 minimum) |
| Prepayment Penalty | None (no minimum interest earned) |
| Occupancy | Non-owner occupied—business purpose only |
| Transaction Types | Arms-length purchase, refinance |
| Geographic Coverage | All US states except AK, AZ, HI, MN, ND, NV, OR, SD, UT, VT |
| Amortization Structure | Interest-only with balloon payment at maturity |
| Interest Accrual Method | < $100K: full loan amount (“Full Boat”) ≥ $100K: as disbursed |
Extensions
Tennessee bridge loans are designed for short-term use—typically 12 to 24 months. Most of our investors complete their projects ahead of schedule. But if life or the market gets in the way, we offer extension options.
| Initial Loan Term | Maximum Extension |
|---|---|
| 12 months | 6 months |
| 18 months | 9 months |
| 24 months | 12 months |
Extension Terms and Fees
| Extension Term | Fee |
|---|---|
| 3 months (1st request) | 1% of the total loan amount |
| 3 months (2nd request) | 1.5% of the total loan amount |
| 6 months (1st request) | 2.5% of the total loan amount |
Fees are added to your final payoff statement when you extend.
Extension Prerequisites
Before we grant a bridge loan extension, the following must be in place:
Your builder’s risk insurance policy must be valid for the extended period
Any additional requirements communicated by OfferMarket
Ineligible Property Types
Our Tennessee Bridge Loan Program is tailored specifically for 1–4 unit non-owner occupied residential properties. We avoid riskier asset classes to protect both your investment and our lending standards.
Not eligible for funding:
Mixed-use properties
Buildings with 5+ residential units
Condotels or co-ops
Mobile/manufactured homes
Commercial spaces (retail, office, industrial)
Cabins, log homes, or homes with unpaved access
Farmland or agricultural operations
Vacation or seasonal rentals
Luxury or exotic properties
Properties with oil/gas leases
Exception Scenarios
Some unique deals may still qualify on a case-by-case basis. Our underwriting team reviews the following exception types:
| Scenario | Consideration |
|---|---|
| Credit score between 660–679 | May be eligible with strong compensating factors |
| Leasehold interest | May be eligible upon review |
| Single-family homes under 700 SQFT | Exception basis only |
| Small units in multifamily (400–499 SQFT) | Exception basis only |
| Financing based on As Is value above cost basis | Must meet refinance criteria |
| Non-arms-length transactions | Must be disclosed and reviewed |
| Financed interest payments | May be allowed for qualified borrowers |
Borrower and Guarantor Requirements
To ensure responsible lending and strong performance, our Tennessee Bridge Loan Program has clear eligibility requirements for borrowers and guarantors.
| Item | Requirements / Eligibility |
|---|---|
| Borrowing Entities | LLC or Corporation only (nonprofits not eligible) |
| Eligible Borrowers | U.S. Citizens, U.S. Permanent Residents, and qualified Foreign Nationals |
| Foreign Nationals | Valid passport and visa (excluding travel/student visas unless on Visa Waiver Program); U.S. FICO score required if acting as guarantor |
| Credit Requirements | Minimum 680 FICO (660–679 considered with compensating factors) |
| Credit Report | Tri-merge credit report, not older than 120 days |
| Liquidity Requirements | Must cover cash to close plus 25% of rehab budget |
| Eligible Liquid Assets | Bank accounts, brokerage accounts, retirement funds (subject to haircut) |
| Verification of Liquidity | Two most recent statements; no seasoning required; LOE needed for large deposits |
| Guaranty Structure | Purchases: 51% of entity must guarantee; Cash-out refi: 100% guaranty required |
| Recourse | Full recourse required |
| Aggregate Guarantor Net Worth | Must equal or exceed 50% of the loan amount |
Liquidity Verification
To confirm you’re prepared for your Tennessee project, we require proof of sufficient liquid assets—at least enough to cover closing costs plus 25% of your renovation budget. These funds must be in accounts controlled by the guarantors.
Eligible Liquid Assets
Personal checking or savings accounts
Business accounts tied to the borrowing entity
Business accounts tied to related entities (subject to review of operating agreement)
Individual brokerage accounts
Entity-held brokerage accounts
Retirement accounts (with 50% haircut for access restrictions)
Note: A business bank account is not required, but it’s highly recommended for clean accounting and better cash management.
Credit and Background Items
We take a holistic look at creditworthiness and background history as part of our underwriting for Tennessee bridge loans. Here's what we review:
| Scenario | Requirement |
|---|---|
| Middle credit score | Used if 3 scores available; lowest if only 2 scores |
| No mortgage tradelines | 6 months of interest reserves required |
| Fewer than 5 credit tradelines | 6 months of interest reserves required |
| Bankruptcy (any type) | Must be discharged at least 4 years prior |
| Foreclosure on record | Must be completed 4+ years before loan closing |
| BK/foreclosure within 4–7 years | Requires at least 3 months of interest reserves |
| Late mortgage payments (past year) | LOE required; may impact eligibility |
| Outstanding debts (mortgage or other) | Must be cleared prior to funding |
| Liens or judgments | Must be resolved prior to loan closing |
| Pending civil lawsuits | Requires LOE and may trigger further review |
| Pending criminal cases | Not eligible |
| Financial crimes | Not eligible |
| Other criminal history | LOE required; reviewed case-by-case |
Interest Reserves
In some cases, interest reserves will be collected at closing and held in escrow to cover monthly interest payments.
| Guarantor FICO Score / Scenario | Interest Reserve Requirement |
|---|---|
| Lender discretion | 0 months |
| FICO 700+ | 1 month |
| FICO 660–699 | 3 months |
| FICO 660–699 with other risk flags | 6 months |
Financed Interest Payments
To preserve your cash flow during your Tennessee project, you may qualify for financed interest—meaning you won’t make monthly payments. Instead, accrued interest is added to your payoff balance.
Example:
| Loan Amount | $100,000 |
|---|---|
| Interest Rate | 12% annually |
| Loan Duration | 9 months |
| Accrued Interest | $9,000 (100,000 × 12% ÷ 12 × 9) |
| Payoff Statement | Principal: $100,000 Interest: $9,000 |
Property Sourcing Guidelines
We aim to fund Tennessee deals that are smart, viable, and well-documented. To that end, we’ve established clear acquisition and underwriting standards.
Key Points
New market projects require either:
A signed GC agreement, or
A Letter of Explanation (LOE) explaining why no GC is necessary
Projects with price escalations or wholesaling structures require:
- Documentation of all contracts and parties
Major renovations (e.g., structural changes, additions) may require:
Architect/engineer plans
Permits and approvals
Required Documents
To approve your Tennessee bridge loan, our underwriters will need to see:
Fully executed purchase contract
Settlement statements (if applicable)
Payoff letters for refinances
Track record and experience proof
Entity documents (LLC/Corp formation, operating agreement, etc.)
Additional documents upon request
Bridge Loan Insurance Guidelines
Protecting your Tennessee investment property is essential—and required. We mandate builders risk or fix-and-flip insurance on all bridge-financed projects. Coverage must remain active for the full term.
Coverages and Limits
| Coverage Type | Limit | Required |
|---|---|---|
| Dwelling | Replacement Cost or Loan Amount (no coinsurance) | Yes |
| Liability | $1M per occurrence / $2M aggregate | Yes |
| Builders Risk | Included in policy | Yes |
| Flood | Greater of $250K or loan balance | If FEMA flood zone |
Coverage Details
| Coverage Item | Requirement |
|---|---|
| AM Best Rating | A- VIII or higher |
| Policy Type | Special Form |
| Deductible | $1,000 to $5,000 |
| Lender Designation | Must list OfferMarket as Mortgagee and Additional Insured |
| Exclusions | Must cover wind, hail, and storm damage |
| Cancellation Notice | 30-day minimum required |
💡 Tennessee Tip: As soon as you take possession, install smoke detectors, locks, and cameras. These steps not only protect your asset—they help ensure compliance with your insurance policy.
Frequently Asked Questions About our Tennessee Bridge Loan Program
Where does OfferMarket provide bridge loan funding?
OfferMarket proudly supports real estate investors across the majority of the United States, including right here in Tennessee. In certain states that require special licensing, we act as a rate-shopping service and connect you with trusted, licensed partners.
Bridge loans available in:
Alabama
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Mississippi
Missouri
Montana
Nebraska
New Hampshire
New Jersey
New Mexico
New York
North Carolina
Ohio
Oklahoma
Pennsylvania
Rhode Island
South Carolina
Tennessee
Texas
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming
(*In select states like AZ, HI, MN, ND, NV, OR, SD, UT, VT, we operate as a referral partner only.)
Can I have multiple bridge loans at once?
Yes! Many of our Tennessee clients work on multiple projects simultaneously using more than one bridge loan. We do monitor risk and may recommend pacing your projects if your liquidity or timelines suggest a need to proceed cautiously.
Are bridge loans commercial loans?
They are. Bridge loans are business-purpose loans originated to your LLC or corporation—not to you personally.
What is the minimum loan amount?
| Minimum Loan Amount |
|---|
| $25,000 |
What types of properties qualify?
We finance non-owner occupied residential properties across Tennessee, including:
Eligible Property Types:
Single-family homes
Townhomes
2–4 unit multifamily residences
Warrantable condominiums
Planned Unit Developments (PUDs)
Not Eligible:
Mixed-use
Multifamily (5+ units)
Non-residential commercial
Vacation rentals or luxury homes
Mobile homes, cabins, and other unconventional structures
How is Loan-To-Value (LTV) calculated?
LTV, or more commonly LTARV (Loan-To-After-Repair Value), measures your total loan against the projected property value after improvements.
Formula:
LTARV = (Initial Advance + Construction Holdback) ÷ ARV
We base the initial advance on the lower of:
Your contract purchase price, or
The As Is valuation from appraisal or internal review
What are the credit score requirements?
| Minimum Credit Score | 680 |
|---|---|
| Case-by-case eligibility | 660–679 (with strong compensating factors) |
All personal guarantors on the borrowing entity must meet these standards.
Do I need prior experience to qualify?
No experience is required to get started. That said, experienced Tennessee investors may receive:
Higher leverage
Larger loan amounts
More flexible terms
We evaluate your track record based on completed rehab projects where you had financial responsibility—not just advisory or wholesale involvement.
Does wholesaling count toward experience?
Wholesaling alone does not count as direct investment experience.
What documentation is required?
At OfferMarket, we’ve simplified the bridge loan process for Tennessee investors through our secure digital Loan File system. This system helps you organize and upload all required documents efficiently, accelerating approvals for both new and future transactions.
Purchase Transaction Requirements
| Loan File Sections: Purchase | What You’ll Need |
|---|---|
| Purchase Agreement | Fully executed contract signed by buyer and seller |
| Credit Report | Soft pull tri-merge credit report for each guarantor |
| Background Check | Required for every individual guaranteeing the loan |
| Experience/Track Record | Project history from each member of the borrowing entity |
| ID Verification | Government-issued identification (driver’s license, passport, or Green Card) |
| Entity Documentation | Articles of Formation, Operating Agreement or Bylaws, W-9, and Certificate of Good Standing |
| Scope of Work | Itemized rehab plan used to determine the projected ARV |
| Appraisal Report | Ordered through OfferMarket's AMC link and uploaded upon completion |
| Bank Statements | Two most recent statements for each guarantor; can be personal or business accounts |
| Letter of Explanation (LOE) | If requested—used to clarify large deposits, late payments, or other underwriting flags |
Refinance Transaction Requirements
| Loan File Sections: Refinance | What You’ll Need |
|---|---|
| Settlement Statement | Final closing statement from your purchase transaction |
| Credit Report | Soft tri-merge report for each guarantor, pulled with your permission |
| Background Check | Conducted on each individual guaranteeing the refinance |
| Experience/Track Record | History of completed investment projects from all involved parties |
| ID Verification | Valid ID such as a passport, driver's license, or permanent resident card |
| Entity Documentation | Legal formation documents, W-9, and proof of active status for your LLC or Corp |
| Sunk Costs Breakdown | Detailed list of expenses incurred to date (for accurate cost basis evaluation) |
| Scope of Work | Clear rehab plan that supports the ARV and project feasibility |
| Appraisal Report | Ordered via our AMC partner, with link provided during the process |
| Bank Statements | Two up-to-date statements from each guarantor (personal or business) |
| Letter of Explanation (LOE) | Required only if underwriting identifies items needing clarification |
Are there special requirements for loans above $1 million?
| Criteria | Requirement |
|---|---|
| Experience | Minimum Tier 3 (3+ completed projects) |
| Market Liquidity | At least 3 comps within 2 miles sold in the last 6 months |
| Credit | 680+ with 5 trade lines and 24-month credit history |
| Rural Designation | Not eligible if marked rural by CFPB, USDA, or appraisal |
| Track Record | Required for all guarantors |
Glossary of Key Terms
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit—secondary living space on the same lot |
| Arms-length | Fair market deal between unrelated parties |
| Non Arms-length | Deal involving parties with personal/financial ties |
| Initial Advance | Loan portion used for purchase price |
| Construction Holdback | Reserved loan funds for renovation work |
| Interest Reserves | Pre-collected funds to cover interest payments |
| LOE | Letter of Explanation to clarify underwriting issues |
| LTC | Loan-to-Cost ratio (loan ÷ project cost) |
| LTFC | Loan-to-Full-Cost (loan ÷ [purchase + rehab]) |
| LTV | Loan-to-Value (loan ÷ current property value) |
| LTARV | Loan-to-After-Repair Value (loan ÷ projected value) |
| As Disbursed Interest | Interest accrues only on disbursed funds |
| Full Boat Interest | Interest accrues on full loan balance from day one |
| Lopsided Deal | When rehab budget exceeds purchase or As Is value |
| GC Agreement | Contractor agreement for scope, timing, and cost |
| DSCR | Debt Service Coverage Ratio = Rent ÷ PITIA |
Get Your Instant Bridge Loan Quote
At OfferMarket Capital LLC, we’re proud to serve Tennessee real estate investors with reliable, transparent, and fast bridge loan solutions.
We specialize in:
Bridge loans for short-term fix-and-flip and BRRRR deals
DSCR loans for long-term rental investments
Private lending with unbeatable flexibility
Tools, data, and off-market access to fuel your success
Thousands of investors trust OfferMarket to fund their growth. Now it’s your turn to scale smarter, faster, and with more confidence across Tennessee.
Let’s build something great—starting today.
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
