Alaska Fix and Flip Loan Program
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At OfferMarket, we understand that Alaska presents unique opportunities and challenges for real estate investors. Our mission is to help you build wealth through real estate by providing fast, reliable, and low-cost capital to purchase and renovate 1-4 unit residential properties in Alaska.
If you're a real estate investor in Alaska looking for a reliable funding partner, the OfferMarket Fix and Flip Loan program is here to support your next property investment. Whether you're flipping properties or opting for a hybrid approach, our loan program is designed to meet your needs with flexible terms and competitive rates.
What is a Fix and Flip Loan in Alaska?
A Fix and Flip loan is specifically designed for real estate investors to purchase and renovate properties. These loans are often referred to as “hard money loans” or “bridge loans,” terms commonly used by private lenders and real estate investors in Alaska and beyond.
How the Fix and Flip Loan Works in Alaska
Our Fix and Flip loans in Alaska have two main components:
- Initial Advance – This portion of the total loan is used towards the purchase price of the property and is wired directly to the title company at closing.
- Construction Holdback – This portion covers the cost of renovations and is released in stages as the work is completed, helping you fund the property’s transformation.
Your exit strategy after renovations is flexible. Whether you choose to sell the property for a profit or rent it out and refinance into a longer-term loan (like a DSCR loan), you can adapt based on market conditions. For instance, you may start a project with a goal to rent and refinance but later decide that flipping the property offers better returns based on current housing market trends in Alaska.
Who Uses Fix and Flip Loans in Alaska?
Our Fix and Flip loan program is used by various types of investors, including:
- Fix and Flip Investors (flippers) who are focused on quickly renovating and selling properties.
- Rental Property Investors who may also employ the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy.
Many real estate investors combine both strategies depending on market conditions, and our program is built to support that flexibility.
Alaska Fix and Flip Loan Program Guidelines
When considering a Fix and Flip loan for your real estate project in Alaska, it's important to understand the complete set of guidelines to ensure you meet the eligibility criteria. Below are the key details for the OfferMarket Fix and Flip Loan in Alaska:
| Criteria | Details |
|---|---|
| Loan Amount (Minimum) | $25,000 |
| Loan Amount (Maximum) | $2,000,000 |
| After Repair Value (ARV) (Minimum) | $100,000 |
| Experience Required | Not required |
| Credit Score (Minimum) | 680 |
| Borrowing Entity | LLC or Corporation |
| Initial Advance | Up to 90% of the purchase price |
| Construction Holdback | Up to 100% of rehab costs |
| Loan-to-ARV (LTARV) (Maximum) | 75% |
| Interest Rate | Get an instant quote |
| Origination Fee | 1.5% to 2 points |
| Term | 12 to 24 months |
| Points Out | None |
| Prepayment Penalty | None |
| Repayment Structure | Interest-only with balloon payment |
| Recourse | Full (51% of borrowing entity must guarantee) |
| Exit Strategy: Sale | Minimum 30% ROI |
| Exit Strategy: Refinance | Minimum 1.1 DSCR after repairs |
| Valuation | Appraisal report or in-house valuation |
| Minimum Square Footage | Single Family: 700+ SQFT |
| 2-4 Unit: 500+ SQFT per unit | |
| Condo: 500+ SQFT | |
| Maximum Acreage | 5 acres |
| Interest Accrual | Loans under $100,000: Full Boat; Loans $100,000+: As Disbursed |
| Advanced Draws | Lender discretion |
| Down Payment (Minimum) | $10,000 |
Project Eligibility for Real Estate Investors in Alaska
As part of our commitment to helping you grow your real estate business, we carefully evaluate each project to ensure it aligns with our risk management standards. While our mission is to help you build wealth, we also focus on ensuring that your investment is secure.
For instance, our program is best suited for those undertaking moderate rehab projects, as extensive rehabs can often come with higher costs and delays, especially in Alaska’s diverse and often remote markets.
- Experience Level: While we do not require experience, we assess the complexity of the project based on factors like the rehab scope and the location’s market dynamics.
- Rural Projects: In some remote areas of Alaska, projects may require additional experience and come with a lower initial advance due to their rural designation.
- Rehab Scope: Projects with a low rehab scope, such as cosmetic updates, tend to face fewer complications and are more eligible for higher initial advances.
Project Types Eligible for Alaska Fix and Flip Loans
The types of properties eligible for funding through the Alaska Fix and Flip Loan program include:
- Single-Family Residences
- Duplexes, Triplexes, and Quadplexes
- Condominiums and Townhomes
Whether you're flipping homes in a bustling area like Anchorage or investing in properties further out in Alaska’s more rural towns, we provide financing options tailored to your project’s unique needs.
Alaska Fix and Flip Loan Program: Experience-Based Tiers & Advanced Draws
At OfferMarket, we offer flexible financing solutions that align with your experience level as a real estate investor in Alaska. We’ve established experience-based tiers to better determine loan conditions and to offer you the best possible terms.
Experience-Based Tiers for Fix and Flip Loans in Alaska
Our experience-based tiers help determine the loan amount, initial advance, and rehab scope eligibility for your project. Here's how the tiers work:
| Tier | Verifiable Experience | Initial Advance (% of Purchase Price) |
|---|---|---|
| 1 | 0 | 80%* |
| 2 | 1-2 | 85% |
| 3 | 3-4 | 85% |
| 4 | 5-9 | 90% |
| 5 | 10+ | 90% |
*Note: 85% is available on an exceptional basis for borrowers with excellent credit and liquidity.
As a borrower in Alaska, you will be categorized into one of these tiers based on your real estate investment experience. The higher your experience, the more favorable the terms you’ll receive.
Adjustments to Initial Advance in Alaska
Certain factors can affect the amount of the initial advance we provide. These adjustments include:
| Scenario | Adjustment |
|---|---|
| Credit Score < 720 | -5% |
| Full Gut Rehab | -5% |
| New Market | -5% |
| Licensed Realtor | Up to +5% |
| Licensed General Contractor | Up to +10% |
| Licensed Professional Engineer | Up to +10% |
| Rural | -20% (3+ experience) |
For Alaska-based projects, rural properties may require additional experience and come with adjustments to the initial advance, particularly for properties located in remote areas where market conditions and property values can vary significantly.
Rehab Scope Classification in Alaska
The rehab scope classification helps determine whether your project falls within a manageable level of complexity for financing. Here are the classifications:
| 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, e.g., addition, expansion, or ADU construction |
For projects in Alaska, particularly in more rural or remote locations, we recommend focusing on lighter rehab scopes that can be completed more efficiently, minimizing potential delays and cost overruns.
Maximum Loan-to-After-Repair Value (LTARV) in Alaska
The maximum LTARV is determined based on your experience tier and rehab scope. Here’s a breakdown of the LTARV limits in Alaska:
| Tier | Light Rehab | Moderate Rehab | Heavy Rehab | Extensive Rehab |
|---|---|---|---|---|
| 1 | 70% | Ineligible | Ineligible | Ineligible |
| 2 | 70% | 70% | 70% | Ineligible |
| 3 | 75% | 75% | 75% | 70% |
| 4 | 75% | 75% | 75% | 70% |
| 5 | 75% | 75% | 75% | 70% |
Loan-to-Full-Cost (LTFC) Limits in Alaska
For projects with extensive rehab scopes, the LTFC ensures you have enough “skin in the game” to mitigate the risks of these more complex renovations. The LTFC is limited based on your experience and the rehab scope:
| Tier | Light Rehab | Moderate Rehab | Heavy Rehab | Extensive Rehab |
|---|---|---|---|---|
| 1 | N/A | Ineligible | Ineligible | Ineligible |
| 2 | N/A | N/A | N/A | Ineligible |
| 3 | N/A | N/A | N/A | 85% |
| 4 | N/A | N/A | N/A | 90% |
| 5 | N/A | N/A | N/A | 90% |
Alaska Fix and Flip Loan Examples
Understanding the numbers behind your project is essential when considering a Fix and Flip loan in Alaska. Here are examples of how the loan terms work based on different scenarios and experience levels, helping you to better visualize your potential loan structure.
Example 1: No Experience, Standard Terms
- Purchase Price: $100,000
- Tier: 1 (0 similar verifiable experience)
- Credit Score: 695
- Rehab Budget: $24,000
- ARV (After Repair Value): $150,000
- Initial Advance: $75,000 (75%)
- Construction Holdback: $24,000
- Total Loan Amount: $99,000
- LTARV (Loan-to-After-Repair Value): 66%
- LTFC (Loan-to-Full-Cost): 79.8%
- Interest Accrual: Full boat
In this example, as a first-time borrower in Alaska, with a credit score of 695, the loan structure offers a solid starting point for flipping the property. The LTARV of 66% ensures you have enough capital for both the purchase and renovation.
Example 2: No Experience, Excellent Credit
- Purchase Price: $100,000
- Tier: 1 (0 similar verifiable experience)
- Credit Score: 750
- Rehab Budget: $24,000
- ARV (After Repair Value): $150,000
- Initial Advance: $80,000 (80%)
- Construction Holdback: $24,000
- Total Loan Amount: $104,000
- LTARV (Loan-to-After-Repair Value): 69.33%
- LTFC (Loan-to-Full-Cost): 83.9%
- Interest Accrual: As disbursed
With an excellent credit score of 750, this borrower can receive a higher initial advance of 80%, improving the overall funding for their Alaska property rehab. The LTARV of 69.33% indicates a solid loan-to-value ratio for a profitable flip.
Example 3: Experienced Investor, Strong Project
- Purchase Price: $100,000
- Tier: 4 (5 similar verifiable experience)
- Credit Score: 750
- Rehab Budget: $20,000
- ARV (After Repair Value): $150,000
- Initial Advance: $90,000 (90%)
- Construction Holdback: $20,000
- Total Loan Amount: $110,000
- LTARV (Loan-to-After-Repair Value): 73.33%
- LTFC (Loan-to-Full-Cost): 91.67%
- Interest Accrual: As disbursed
An investor in Alaska with 5 similar verifiable projects can access a maximum initial advance of 90%, giving them more room for renovations and project improvements. The LTARV of 73.33% reflects a robust margin of equity to help reduce risk.
Refinancing with "As Is" Value for Alaska Projects
When refinancing your property for renovation after it has appreciated, OfferMarket offers the option to use the As Is value instead of the total cost basis. This allows you to potentially secure a higher loan amount based on the property’s increased market value.
Requirements for refinancing using As Is value:
- The property must be habitable (≥ C4 condition) and not in a state of disrepair.
- The property must be 3+ years seasoned.
- The borrower’s credit score must be 680+.
- Experience Tier: Tier 3 or higher (minimum of 4 similar verifiable rehab projects).
- There must be strong support for As Is value > cost basis (verified through comparable sales in the neighborhood).
Wholesaler Transactions in Alaska
For properties acquired through wholesalers, OfferMarket allows you to include the assignment fee or double-close price run-up in your cost basis, as long as the price increase does not exceed 20% of the purchase price between the wholesaler and seller. For example:
- A-B Contract (original purchase): $100,000
- B-C Contract (assignment fee): $25,000
- As Is Value: $125,000
- Value Basis for Initial Advance: $120,000
OfferMarket requires the following documentation for wholesale deals:
- Full chain of contracts/assignments (A-B, B-C).
- Wholesaler’s operating agreement.
- No finder’s fees or referral fees will be financed.
This ensures a fair transaction where the financing is based on realistic and justifiable property values.
Alaska Fix and Flip Loan: Construction Holdback and Valuation Process
At OfferMarket, we understand that managing the finances for property renovations in Alaska can be complex, especially with the geographical and market differences across the state. That's why our Fix and Flip loan program is designed with flexibility and clarity, especially when it comes to the construction holdback and valuation process. These features ensure you have the funds available for the renovation work while staying on track with your project’s budget.
Construction Holdback for Alaska Projects
The construction holdback is a key component of your loan that ensures funds are disbursed according to the progress made on your rehab project. Here’s how it works for Fix and Flip loans in Alaska:
- Draw Request and Reimbursement: As you complete work on your property, you’ll request draw funds for reimbursement based on the verified progress made against your approved scope of work.
- Flexibility in Draws: If you have enough liquidity to float the rehab costs without using the construction holdback, you can opt for no construction holdback. This option allows you to use your own capital for the rehab and proceed without waiting for reimbursements.
- Interest Accrual for Large Loans: If your total loan amount is $100,000 or higher, we won’t charge interest on any undrawn construction holdback funds (refer to the “As Disbursed” interest accrual method).
Here’s a breakdown of the draw processing guidelines for Alaska:
| Criteria | Details |
|---|---|
| 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 | 50% (receipt or invoice required) |
| Draw Inspection | App-based (self-serve) |
| Draw Turnaround | 0 to 2 business days |
| Draw Fee | $270 |
| Wire Fee | $30 |
These flexible draw options allow you to manage your rehab expenses efficiently, ensuring that funds are only drawn when necessary.
Appraisal and In-House Valuation for Alaska
To ensure that your project in Alaska is properly funded, we require a valuation for all Fix and Flip loans. Depending on your project, we will either use an in-house valuation, a 3rd party exterior appraisal, or a 3rd party interior appraisal.
In-house Valuation Criteria: For eligible borrowers, an in-house valuation can be done instead of a full appraisal, under the following conditions:
- Property Type: Single family, duplex, triplex, or quadplex.
- Tier: Tier 4 or higher.
- Credit Score: 720+.
- Rural: No.
- New Market: No.
- LTARV: 70% maximum.
Exterior Appraisal Criteria: An exterior appraisal is acceptable for properties acquired through REO sales, foreclosure auctions, sheriff’s sales, or bankruptcy sales. It must be dated within 120 days of the settlement date, with recertification required if it is between 120-179 days old.
Interior Appraisal Criteria: For any other scenario not covered by an exterior appraisal, a full interior appraisal is required. Here’s the breakdown:
| Property Type | Appraisal Forms |
|---|---|
| Single Family | 1004 + 1007 ARV with As Is value included (non-gridded) |
| 2-4 Unit | 1025 + 216 ARV with As Is value included (non-gridded) |
| Condo | 1073 + 1007 ARV with As Is value included (non-gridded) |
Unless a transfer of appraisal (see below) applies, OfferMarket will order the appraisal directly through an approved Appraisal Management Company (AMC). You will be responsible for paying the appraisal invoice to ensure timely loan processing.
Appraisal Transfer: In cases where an appraisal has already been ordered by another lender, OfferMarket allows the transfer of that appraisal, provided the following conditions are met:
- The appraisal is less than 180 days old at the closing of our loan.
- The appraisal is re-certified if it is between 120-179 days old.
- The transfer letter certifies compliance with Appraiser Independence Requirements (AIR).
Key Loan Details for Alaska Fix and Flip Loans
To ensure you have a comprehensive understanding of the loan terms, here are the key details for the Fix and Flip loan program in Alaska:
| Criteria | Details |
|---|---|
| Loan Amount | $25,000 to $2,000,000* |
| Units per Property | 1 – 4 |
| Eligible Property Types | Non-owner occupied 1-4 unit residential |
| Property Minimum Size | Single Family: ≥700 SQFT |
| Condo and 2-4 Unit: ≥500 SQFT per unit | |
| Max Acreage | 5 acres |
| Loan to Cost (LTC) | Up to 90% purchase, 100% rehab |
| Loan to ARV (LTARV) | Up to 75% |
| Down Payment | Minimum $10,000 for purchase price under $100K |
| Loan Term | 12 months standard; 18-24 months for specific projects |
| Extensions | Up to 50% of original term (fee applies) |
| Points | 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 Region | All US states except AK, AZ, HI, MN, ND, NV, OR, SD, UT, VT |
| Amortization | Interest-only with balloon payment at maturity |
| Interest Accrual Method | Loan Amount < $100K: interest charged on total loan amount ("Full Boat") |
| Loan Amount ≥ $100K: interest charged on funds disbursed ("As Disbursed") |
Alaska Fix and Flip Loan: Extensions and Loan Requirements
At OfferMarket, we understand that real estate projects in Alaska may face unexpected delays. However, Fix and Flip loans are intended to be short-term, and we strongly advise against extending your loan unless absolutely necessary.
Why Extensions Should Be Avoided in Alaska
In order to minimize the risk of delays and avoid the need for extensions, here are some factors to consider:
- Inexperienced General Contractors: If you're working with an inexperienced contractor, your project is more likely to experience delays and cost overruns.
- Ambitious Rehab Scope: An aggressive rehab plan that exceeds your experience and available liquidity can lead to project difficulties.
- Zoning and Permitting Delays: In some areas of Alaska, obtaining zoning approvals and permits can take longer, particularly in remote regions.
- Limited Access to Property: If you don’t have immediate access to the property (due to tenant leases, evictions, etc.), your project may face delays.
- Lack of Dual Exit Strategy: It’s crucial to have a backup plan to either sell or refinance the property. Without a dual exit strategy, you may face unexpected setbacks.
By addressing these challenges up front, you significantly reduce the chance of needing an extension.
Extension Limits for Fix and Flip Loans in Alaska
If, despite your best efforts, you find it necessary to extend your loan term, we offer the following options for extending the loan period:
| Loan Term | Maximum Extension |
|---|---|
| 12 months | 6 months |
| 18 months | 9 months |
| 24 months | 12 months |
Extensions can be requested in 3-month or 6-month increments, and the extension must be approved by OfferMarket based on specific criteria outlined below.
Extension Terms and Fees
If your project in Alaska requires an extension, the following fees will apply:
| 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 |
Extension Prerequisites: To qualify for an extension, you’ll need to confirm that your Fix and Flip insurance policy is in effect for the entire duration of the extension period. This ensures that your property is covered in case of any unforeseen issues that may arise during the extended term.
Ineligible Property Types for Alaska
Not all property types are eligible for Fix and Flip loans. The following types of properties are ineligible for funding in Alaska:
- Mixed Use
- 5+ unit multifamily
- Condotels
- Co-ops
- Mobile/Manufactured Housing
- Commercial Properties
- Cabins/Log Homes
- Properties with Oil/Gas Leases
- Operating Farms, Ranches, Orchards
- Vacation/Seasonal Rentals
- Unique/Exotic/Luxury Properties
- Unpaved or Dirt Roads
Exception Scenarios:
- 660-679 Guarantor Credit Score: Additional requirements apply.
- Leasehold (Ground Rent) Properties: These may require special documentation or conditions.
- Small Single-Family Properties: Properties sized between 500 and 699 sq ft may have different requirements.
Borrower and Guarantor Requirements for Alaska
In order to qualify for an OfferMarket Fix and Flip loan in Alaska, there are specific requirements for the borrowing entity and guarantors. Here are the key requirements:
| Item | Requirements / Eligibility |
|---|---|
| Borrowing Entities | LLC or Corporation (Nonprofits not eligible) |
| Eligible Borrowers | US Citizens, US Permanent Residents, and qualified Foreign Nationals |
| Foreign Nationals | Must have a valid passport and valid US Visa (excluding Travel/Student Visas if not on Visa Waiver Program) |
| Credit Score | Minimum 680 FICO (exceptions made for scores between 660-679) |
| Credit Report | Tri-merge credit report (not older than 120 days) |
| Liquidity Requirements | Minimum estimated cash to close + 25% of rehab budget in liquid assets controlled by one or more guarantors |
| Guarantor Structure | At least 51% of the borrowing entity must guarantee the loan (for purchase); 100% for cash-out refinance |
| Full Recourse | Full recourse is required, meaning personal guarantees are necessary from the borrowing entity’s guarantors |
| Guarantor Net Worth | Aggregate net worth must be at least 50% of the loan amount |
Liquidity Verification
We verify that the guarantor(s) have the required liquidity for the project, including the cash to close and additional rehab funds. Eligible liquid assets include:
- Bank accounts (personal or business)
- Brokerage accounts
- Retirement accounts (50% reduction applies)
You will need to submit the two most recent bank statements to verify liquidity. Additionally, if any large deposits are made, a Letter of Explanation (LOE) may be required.
Credit and Background Items
Your credit and background check is an essential part of the loan approval process. We assess the following items:
- Credit Score: If 3 credit scores are available, we use the middle score. If only 2 scores are returned, we use the lowest score.
- Mortgage Tradelines: If fewer than 5 tradelines appear on the credit report, we will require 6 months of interest reserves.
- Bankruptcy: Must be discharged for more than 4 years.
- Foreclosure: Completion date must be greater than 4 years from the settlement date.
- Late Mortgage Payments: If any occur in the last 12 months, a Letter of Explanation (LOE) is required.
- Involuntary Liens (e.g., tax lien, child support): Must be paid off prior to funding.
If there are any pending civil or criminal lawsuits, you may not be eligible for funding.
Alaska Fix and Flip Loan: Interest Reserves and Documentation Requirements
At OfferMarket, we understand that managing cash flow and ensuring smooth operations during a project is essential for successful real estate investing in Alaska. One key aspect of our Fix and Flip loan program is the use of interest reserves and the straightforward documentation process that helps expedite funding.
Interest Reserves for Alaska Projects
Interest reserves refer to the amount of interest payments that are collected on the settlement statement and held in servicing escrow. These reserves are used to cover your accrued interest and are drawn down before you begin making monthly interest payments from your own bank account.
Here’s how interest reserves are applied based on different scenarios:
| Scenario | Interest Reserve |
|---|---|
| 0 months | Lender discretion |
| 1 month | Guarantor FICO 700+ |
| 3 months | Guarantor FICO 660 - 699 |
| 6 months | Guarantor FICO 660 - 699 AND/OR concerning item on credit or background report |
Financed Interest Payments for Liquidity Protection
To protect your liquidity and avoid compromising your credit score due to excessive credit card usage during the rehab process, you may be eligible for financed interest payments. This allows you to add the interest accrued to your payoff statement, instead of making monthly interest payments. Here’s an example:
- Total Loan Amount: $100,000
- Interest Rate: 12%
- Months Held to Payoff: 9
- Accrued Interest: $9,000 ($100,000 * 12% ÷ 12 months * 9 months)
Your payoff statement will reflect:
- Unpaid Principal Balance: $100,000
- Unpaid Interest: $9,000
This option allows you to focus on completing your rehab without worrying about monthly interest payments during the renovation process.
Alaska Fix and Flip Loan: Documentation Requirements
For a smooth and efficient loan approval process, we require specific documentation. This helps us assess the details of your project and ensure compliance with the loan terms. Below are the key documents required for both purchase and refinance transactions in Alaska.
Purchase Transaction Requirements
For all purchase transactions in Alaska, the following documents are required:
| Loan File Section | Document |
|---|---|
| Purchase Contract | Fully executed by buyer and seller. |
| Credit Report | Soft tri-merge credit report for each member of the borrowing entity that will be a guarantor. |
| Background Report | Required for each member of the borrowing entity. |
| Track Record | Required for each member of the borrowing entity. |
| ID Verification | Government-issued ID (e.g., driver's license, passport, Green Card). |
| Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9 |
| Scope of Work | A detailed rehab budget that will be used to determine ARV. |
| Appraisal Report | You will be provided with a link to pay your appraisal invoice. Your appraisal will be uploaded to your loan file. |
| Bank Statements | Two (2) most recent statements for each guarantor. Account(s) can be personal (i.e., bank, brokerage, retirement) and do not need to be in the name of the borrowing entity. |
| Letter of Explanation | If requested by underwriting, e.g., for large deposits, late payments, or background items. |
Refinance Transaction Requirements
For refinance transactions, we require similar documentation:
| Loan File Section | Document |
|---|---|
| Settlement Statement | Fully executed by buyer and settlement agent. |
| Credit Report | Soft tri-merge credit report for each member of the borrowing entity that will be a guarantor. |
| Background Report | Required for each member of the borrowing entity. |
| Track Record | Required for each member of the borrowing entity. |
| ID Verification | Government-issued ID (e.g., driver's license, passport, Green Card). |
| Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9 |
| Sunk Costs | The line items and associated costs that have already been incurred. |
| Scope of Work | Your detailed rehab budget that will be used to determine ARV and guide your rehab of the property. |
| Appraisal Report | You will be provided with a link to pay your appraisal invoice. Your appraisal will be uploaded to your loan file. |
| Bank Statements | Two (2) most recent statements for each guarantor. Account(s) can be personal (i.e., bank, brokerage, retirement) and do not need to be in the name of the borrowing entity. |
| Letter of Explanation | If requested by underwriting, e.g., for large deposits, late payments, or background items. |
Special Requirements for Loans Over $1M
Loans above $1M (up to the $2M maximum) come with additional requirements to ensure that the project is viable and that the borrower has the necessary experience and financial stability. These include:
| Criteria | Explanation |
|---|---|
| Experience | Minimum experience of 3 similar or greater price point strongly preferred. |
| Market Liquidity | Minimum of 3 comps within a 2-mile radius sold on the MLS in the last 6 months. |
| Credit Score | Minimum 680, with a minimum of 5 trade lines with a 24-month history. |
| Rural Designation | Not eligible if the property is designated as rural by the CFPB and USDA or appraisal report. |
| Track Record | Required for each member of the borrowing entity. |
Glossary of Key Terms
Here’s a quick reference for some key terms used in our loan agreements:
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit. A secondary housing unit on the same parcel as the main home. |
| Arms-Length | A transaction between independent parties, ensuring fair market value. |
| Non-Arms-Length | A transaction where a personal or business connection affects fairness or pricing. |
| Initial Advance | The portion of the total loan amount that goes toward the property purchase. |
| Construction Holdback | The portion of the total loan that will cover rehab costs. |
| LTARV | Loan-to-After-Repair Value. Ratio of loan amount to property’s estimated value after rehab. |
| LTC | Loan-to-Cost. Ratio of loan amount to the combined purchase and rehab costs. |
| LTFC | Loan-to-Full-Cost. Ratio of the total loan amount to total cost, including both purchase price and rehab. |
Get an Instant Fix and Flip Loan Quote in Alaska
OfferMarket is your trusted partner for real estate investing in Alaska. Our Fix and Flip loan program is designed to provide you with the financial flexibility and competitive rates you need to succeed in your real estate projects. Get started today by requesting an instant quote for your next fix and flip investment.
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