Hard Money Loan Colorado

Last updated: May 8, 2025

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Our Hard Money Loan program is built to deliver fast, reliable, and competitively priced funding for 1-4 unit residential investment properties across Colorado.

Whether you’re aiming to flip a fixer-upper in Aurora or refinance a rental in Grand Junction, we’d be honored to earn your business and help you reach your investment goals.

Let’s walk through the OfferMarket Hard Money Loan Program designed for Colorado investors.

What is a hard money loan?

A hard money loan is a short-term, asset-backed loan designed to finance 1-4 unit residential investment properties. These loans are used by real estate investors in Colorado to buy, improve, and either sell or rent properties — fast.

You’ll often hear these referred to as “bridge loans” or “fix and flip loans” — all names used interchangeably by local real estate investors and private lenders.

Hard money loan scenarios

In Colorado’s diverse and dynamic real estate market, hard money loans are commonly used in the following situations:

• Buying and renovating a distressed property — like a dated rancher in Thornton — without tying up all your own capital.

• Refinancing a property you picked up for cash in a hot market like Boulder, then completing the renovation with borrowed funds.

• Paying off an existing loan on a partially-renovated home in Colorado Springs to keep your project moving forward.

• Purchasing off-market properties below market value — in “as-is” condition — for a profitable resale.

• Refinancing a cash deal (with no intention of rehabbing) to tap equity and fund your next investment.

• Extending the timeline on a rehabbed property with no renovation plans, giving you breathing room to sell or refinance.

How it works

Every OfferMarket hard money loan has two main components:

• Initial Advance – This portion of the loan helps fund your purchase and is wired directly to the title company at closing.

• Construction Holdback – Reserved for renovation costs, this is disbursed to you in draws as work progresses.

You can choose either component based on your needs. Colorado investors often utilize both to maximize leverage and conserve personal capital. Some opt for just the initial advance when they plan to self-fund rehab, or skip the advance altogether and tap a construction holdback to upgrade a property they already own.

Whether your strategy is to flip a property in Greeley or execute a BRRRR in Colorado Springs, flexibility is key — and that’s what our program offers.

Exit strategies aren’t set in stone. Maybe you expected to rent out your Arvada property, but once rehab is done, the for-sale market looks more attractive. Or maybe you planned to flip in Loveland, but decided to hold and refinance once the market cooled. That’s why we prioritize deals with solid dual exit options to keep you nimble.

Who uses hard money loans?

• Fix and flip investors – targeting undervalued homes for short-term resale.

• Buy and hold rental investors – leveraging the BRRRR method across Colorado’s suburban and urban markets.

Many Colorado investors blend both strategies — flipping when it’s profitable and holding when the market suggests long-term value. We’ve seen that hybrid approach yield consistent success for OfferMarket clients.

Hard Money Loan Program Guidelines

Project Eligibility

In Colorado’s competitive real estate landscape, our top priority is to help investors manage risk effectively. That’s why less than 0.5% of all loans we’ve originated have resulted in foreclosure — an industry-leading default rate.

We partner with you as more than a lender: we’re your deal advisor, risk guide, and capital backer. Our risk framework helps ensure you avoid overly complex or high-risk projects — particularly “heavy” rehabs — which can often stall in cities like Denver due to permitting delays or contractor shortages.

To assist with this, we use a rehab scope classification system that helps align project eligibility with your experience and market conditions.

Initial Advance

The amount we advance upfront is based on the property, your experience, and your credit profile. Here’s what we evaluate:

• Properties in Colorado priced above their appraised As Is value? Your initial advance is based on that appraised value — not your contract price.

• Planning to sell? Your projected margin should exceed 30%, with a minimum of $15,000 in profit.

• Planning to rent and refinance? Your DSCR after renovations should be 1.1 or higher.

• Is the property rural (say, out near Pagosa Springs)? Then we limit the initial advance and require more experience — Tier 3 or above.

• Realtors, GCs, and Professional Engineers may qualify for boosted leverage.

Experience-Based Tiers

Initial Advance by Tier

*85% available as exception for excellent credit and liquidity.

Adjustments to Initial Advance

Rehab Scope Classification

Rehab Scope Eligibility

LTARV Limits

LTFC Limits

Example: No Experience

Scenario:

• Purchase Price: $100,000

• Credit Score: 695

• Rehab Budget: $24,000

• ARV: $150,000

Loan Structure:

• Initial Advance: $75,000 (75%)

• Construction Holdback: $24,000

• Total Loan: $99,000

• LTARV: 66%

• LTFC: 79.8%

• Interest: Full boat

Example: No Experience, Excellent Credit

Scenario:

• Purchase Price: $100,000

• Credit Score: 750

• Rehab Budget: $24,000

• ARV: $150,000

Loan Structure:

• Initial Advance: $80,000 (80%)

• Construction Holdback: $24,000

• Total Loan: $104,000

• LTARV: 69.33%

• LTFC: 83.9%

• Interest: As disbursed

Example: 5 Experience

Scenario:

• Purchase Price: $100,000

• Tier: 4 (5 verifiable completed projects)

• Credit Score: 750

• Rehab Budget: $20,000

• ARV: $150,000

Loan Structure:

• Initial Advance: $90,000 (90%)

• 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

Colorado investors refinancing seasoned properties may qualify for higher leverage using the property’s current “As Is” value rather than their original cost basis. OfferMarket reviews these on a case-by-case basis.

Eligibility Requirements:

• Property must be habitable (minimum C4 condition) and not in disrepair

• Must be owned for 3+ years

• Prior lender’s payoff must be clean (no penalties, late fees, or extensions)

• Credit score: 680+

• Experience Tier: 3+

• Strong market comps supporting current As Is value

• Supportive rental or prior occupancy history

Transactions involving wholesalers, price run-ups

For wholesale deals in Colorado — say, in fast-moving Denver neighborhoods — we accommodate price escalations if they meet our criteria.

Example:

• A-B Contract: $100,000

• B-C Contract (assignment fee): $25,000

• As Is Value: $125,000

• Financed Value Basis: $120,000

We finance the wholesale fee up to 20% of the A-B price. Anything above that must be paid out of pocket. MLS-listed properties may not be eligible. Arm’s length transactions only.

Construction Holdback

Your construction holdback is reimbursed in draws based on confirmed progress. It gives you the flexibility to manage cash while maintaining control of your project in Colorado — from Boulder rehabs to Pueblo flips.

Draw Processing Details:

If you prefer to self-fund the rehab and skip the construction holdback, that's perfectly acceptable.

Appraisal and In-house valuation

Every OfferMarket loan requires a valuation. Depending on your profile and the location of your Colorado property, this may be a third-party appraisal or an in-house valuation.

In-house valuation

OfferMarket may still request an appraisal at its discretion.

Exterior appraisal

Accepted when purchasing distressed properties through:

• Foreclosure auction

• Sheriff’s sale

• Online auction

• REO or bankruptcy sale

Must be dated within 120 days of closing. If older, a recertification is required.

Interior appraisal

Required in all other cases. We handle ordering and coordination via AMC. You’re responsible for paying the invoice to move your file forward.

Appraisal transfer

You may transfer a recent appraisal if:

• Ordered via approved AMC

• Less than 180 days old

• Includes PDF, XML, paid invoice

• Comes with signed transfer letter confirming AIR compliance

Scenario: Stabilized Hard Money Loan

If your Colorado property is in great condition (C4 or better) and ready to rent or sell, you may qualify for a stabilized loan using As Is value.

Key Loan Details

Extensions

Hard money loans in Colorado are designed to be short-term — generally paid off within 12 months. While extensions are available, we recommend avoiding them when possible due to added fees and risk of default.

Common causes of delays in Colorado include slow permitting processes in municipalities like Boulder or Aspen, or inherited tenants delaying access. Avoiding these risks will help you complete your project on time.

Extension Limits

Extension Terms and Fees

Note: You must confirm that your builder’s risk insurance policy extends through the entire extension period.

Ineligible Property Types

The following are not eligible for hard money financing under this program in Colorado:

• Mixed-use properties

• 5+ unit multifamily buildings

• Condotels

• Co-ops

• Mobile/manufactured homes

• Commercial-use buildings

• Cabins or log homes

• Properties with oil/gas leases

• Working farms, ranches, or orchards

• Short-term vacation rentals

• Luxury/exotic architecture

• Properties on dirt/unpaved roads

Exception Scenarios

OfferMarket may consider the following with additional documentation and risk review:

• Guarantor credit score between 660–679

• Leasehold interests (ground rent)

• Smaller SFRs (500–699 SQFT)

• 2–4 units with one or more < 500 SQFT

• Initial advance based on As Is value > cost basis

• Non-arm’s length transactions

• Financed interest payments

Borrower and Guarantor Requirements

Liquidity verification

To safeguard your Colorado investment project and ensure timely performance, we verify that you have sufficient liquid assets to close and execute your rehab.

You (or your guarantors) must have:

• Enough funds for your estimated cash to close

• At least 25% of your rehab budget in liquid reserves

Eligible liquid assets:

• Bank accounts in your name or your company’s name

• Business entity accounts (operating agreement required)

• Brokerage accounts (personal or business)

• Retirement accounts (subject to a 50% haircut for underwriting)

Important Notes:

• You do not need to transfer these funds to a specific account — verification only requires recent statements.

• While not required, we encourage Colorado investors to maintain a business checking account to streamline accounting.

• Cash to close is verified through the settlement statement and wired directly to the title company.

Credit and Background Items

If you're investing in Colorado with OfferMarket, your credit profile must be clean and demonstrate financial responsibility. Here's how we evaluate:

• Use middle score of 3 scores or lowest of 2 scores

• No mortgage tradelines → 6 months of interest reserves

• < 5 tradelines → 6 months of interest reserves

• Bankruptcy > 4 years from closing

• Foreclosure > 4 years from closing

• 3–7 year old bankruptcies or foreclosures → 3 months interest reserves

• Late mortgage payments → LOE required

• All past due debts must be resolved prior to funding

• No unresolved civil or criminal litigation

• Financial or violent crimes → Not eligible

Interest Reserves

Interest reserves help protect your liquidity during a rehab. These are held in servicing escrow and drawn before you begin making monthly interest payments.

Financed Interest Payments

To preserve your cash flow during renovations, you may be eligible for interest payments to be financed and added to your loan payoff.

Example:

• Loan: $100,000

• Interest Rate: 12%

• Duration: 9 months

• Accrued Interest: $9,000

• Payoff: $109,000 (no monthly interest payments)

Property Sourcing Guidelines

To ensure underwriting clarity, here’s what we require for new property purchases in Colorado:

• GC Agreement or LOE explaining why no GC is needed (for new markets)

• Purchase contract (fully executed)

• Settlement statements

• Payoff letters if refinancing

• Operating agreements and formation docs

• Rehab budget (scope of work)

• Track record documentation

For condos, conversions, or heavy rehabs, include:

• Permits

• Architect/engineer letters

• Comps and support materials

Wholesale and high-markup deals must be accompanied by:

• A-B and B-C contracts

• Full chain of assignments

• Wholesaler’s operating agreement

• Clear support for valuation

Insurance Guidelines for Hard Money Loans

Your Colorado property must be protected during rehab and while vacant. We require Builder’s Risk Insurance — also known as “Fix and Flip” insurance — to safeguard both your asset and your legal liability.

Coverages and Limits

Policy Requirements

💡 Pro Tip for Colorado Investors: Immediately after purchase, install locks, smoke detectors, and security cameras to comply with your policy and avoid claim denials.

Frequently Asked Questions About Colorado Hard Money Loans

What states does OfferMarket lend in?

We fund loans across nearly all U.S. states — including Colorado — where we’re active in both urban and suburban markets. In a few states (AK, AZ, HI, MN, ND, NV, OR, SD, UT, VT), we refer to licensed lending partners.

Can I hold more than one hard money loan at once?

Yes. Many of our Colorado clients manage multiple projects. We’ll evaluate your liquidity and execution capacity to help you scale responsibly.

Are hard money loans commercial?

Yes. Because they are issued to your LLC or Corp for investment purposes, these are classified as commercial (business purpose) loans.

What’s the minimum loan amount?

$25,000

What property types are eligible?

We finance non-owner-occupied 1–4 unit properties, including:

• Single-family residences

• Townhomes

• Duplexes, Triplexes, Quadplexes

• Warrantable condos

How is LTV calculated?

We use LTARV — the loan amount divided by the after-repair value. For the initial advance, we go by the lower of the As Is value or purchase price.

What credit score is required?

Minimum 680. Exceptions between 660–679 are reviewed case-by-case.

What experience is required?

None. But more experience unlocks better leverage tiers and flexibility.

Do wholesaler deals count as experience?

No — only completed rehab projects where you were financially responsible.

What documents do I need?

Our Loan File system is designed to make the application process seamless for Colorado investors — whether you’re acquiring a rental in Grand Junction or flipping a bungalow in Denver. The documents listed below help us underwrite and close your loan with speed and precision.

Purchase Transaction Requirements

Refinance Transaction Requirements

Are there special requirements for loans over $1M?

Yes. For loans between $1M and $2M, Colorado investors must meet stricter criteria:

Glossary of Key Terms

Instant Colorado Hard Money Loan Quote

OfferMarket Capital LLC is a leading Colorado private lender for 1–4 unit residential real estate. We specialize in fast, flexible hard money loans and DSCR loans, tailored for savvy investors across the Centennial State.

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