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Last updated: May 8, 2025
At OfferMarket, we’re committed to helping Arkansas real estate investors build wealth by making smart, efficient decisions. To support your journey, we’ve developed a powerful all-in-one investing platform built just for you:
💰 Private lending
☂️ Insurance rate shopping
🏚️ Off-market property deals
Our Arkansas Hard Money Loan program gives you the speed, flexibility, and affordability you need to purchase, refinance, or renovate 1-4 unit residential properties in the Natural State.
Whether you’re flipping a fixer-upper in Little Rock or rehabbing a rental in Fayetteville, we’d be honored to earn your business and help you thrive.
Let’s explore what makes our Arkansas Hard Money Loan program the ideal tool for investors.
A hard money loan is a short-term, asset-based loan secured by real estate—specifically 1-4 unit residential properties. These loans are often used in Arkansas by investors who need fast capital to acquire, improve, or refinance properties.
In the real estate world, these loans are also known as “bridge loans” or “fix and flip loans.” Whatever the term, the purpose is the same: get the funding you need quickly to complete your project, generate a profit, or convert the property into a long-term asset.
Across Arkansas—from the bustling streets of Little Rock to quieter corners like Jonesboro or Hot Springs—hard money loans serve a variety of investor needs. These are the most common scenarios where our clients tap into this flexible financing tool:
A hard money loan consists of two main components:
You can customize the structure of your loan to fit your project. You might only need a construction holdback if you already own the property, or just the initial advance if no rehab is needed. Most Arkansas investors we work with use both components to minimize their out-of-pocket expenses.
Sometimes, investors prefer to fund the rehab themselves and skip the holdback. Others may have already purchased a home in cash—perhaps in a hot market like Bentonville—and are only looking for financing to complete the renovations.
Whether you plan to flip the property or refinance into a long-term DSCR loan, your exit strategy is flexible. Many Arkansas investors switch strategies midstream based on changing market conditions or new opportunities.
Take this for example: You start a BRRRR project in Fayetteville, planning to rent it out. But once rehab is done, the local sales market offers such high returns that flipping becomes the better play. Or you’re halfway through a flip in Texarkana and the market cools—so you pivot, refinance into a DSCR loan, and hold as a rental. Dual exit strategy optionality is key to reducing your risk.
Hard money loans are used by:
(*) Ask us about our Fix and Rent bundle: a discounted DSCR loan paired with a hard money loan for purchase and rehab.
Many Arkansas investors blend these strategies—flipping some properties and renting others. That kind of agility is a hallmark of long-term success in real estate, and it’s something we encourage.
Criteria | Guideline |
---|---|
Loan amount (minimum) | $25,000 |
Loan amount (maximum) | $2,000,000 |
ARV (minimum) | $100,000 |
Experience | Not required |
Credit score (minimum) | 680 |
Borrowing entity | LLC or Corporation |
Initial advance | up to 90% |
Construction holdback | up to 100% |
LTARV (maximum) | 75% |
Interest rate | get instant quote |
Origination fee | 1.5 to 2 points |
Term | 12 to 24 months |
Points out | None |
Prepayment penalty | None |
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 |
SqFt (minimum) | Single family: 700+ 2-4 unit: 500+ per unit Condo: 500+ |
Acreage (maximum) | 5 |
Interest accrual | Under $100,000 loan: full boat $100,000+ loan: as disbursed |
Advanced draws | Lender discretion |
Down payment (minimum) | $10,000 |
At OfferMarket, we’re deeply invested in the success of Arkansas real estate investors. From first-time rehabbers in Little Rock to experienced flippers in Fayetteville, our goal is to help you grow your wealth while managing risk effectively.
Our lending program boasts one of the lowest default rates in the country—less than 0.5% of all loans we’ve issued have ended in foreclosure. That’s because we take our role seriously as both your capital provider and risk management partner.
Projects with heavy or extensive rehab scopes—like full gut jobs in Fort Smith or complex additions in Rogers—carry higher risk. These projects can be affected by budget overruns, permit delays, and Arkansas’s local market shifts. Even seasoned investors with strong liquidity can struggle if things go sideways.
That’s why we use a structured classification system for rehab scopes, paired with experience-based eligibility. Let’s break it down.
Your initial advance is calculated using both borrower-specific and deal-specific factors. We look at your experience—how many properties you've owned or renovated in Arkansas (or elsewhere) over the last few years—and your credit profile.
Minimum credit score: 680, though we prefer a 720+ for the personal guarantor
Realtors, licensed General Contractors (GCs), and Professional Engineers may qualify for increased leverage
If your purchase price is above the As Is value of the property (determined by our appraisal or in-house valuation), your initial advance will be based on the lower As Is value.
Exit strategy matters here too.
Selling? You’ll need a projected 30% gross margin and $15,000 minimum profit.
Refinancing? The projected post-repair DSCR should be at least 1.1.
For rural properties—like those in parts of Boone County or near the Ozarks—initial advance limits may apply, and borrowers must show experience with at least three similar projects.
Tier | Verifiable experience |
---|---|
1 | 0 |
2 | 1 to 2 |
3 | 3 to 4 |
4 | 5 to 9 |
5 | 10+ |
Tier | Verifiable experience |
---|---|
1 | 0 |
2 | 1 to 2 |
3 | 3 to 4 |
4 | 5 to 9 |
5 | 10+ |
(*) 85% is available on an exception basis for borrowers with excellent credit and liquidity.
Tier | Verifiable experience |
---|---|
1 | 0 |
2 | 1 to 2 |
3 | 3 to 4 |
4 | 5 to 9 |
5 | 10+ |
Rehab Scope | Definition |
---|---|
Light | Rehab budget is less than 25% of purchase price |
Moderate | Rehab budget is 25% to 49.99% of purchase price |
Heavy | Rehab budget is 50% to 99.99% of purchase price |
Extensive | Rehab budget is 100%+ of purchase price (additions, ADUs, etc.) |
In parts of Arkansas where real estate deals are more lopsided (i.e., a very low purchase price compared to the rehab scope), the Extensive classification and LTFC rules apply.
Tier | Experience | Light | Moderate | Heavy | Extensive |
---|---|---|---|---|---|
1 | 0 | Eligible | Ineligible | Ineligible | Ineligible |
2 | 1-2 | Eligible | Eligible | Eligible | Ineligible |
3 | 3-4 | Eligible | Eligible | Eligible | Eligible |
4 | 5-9 | Eligible | Eligible | Eligible | Eligible |
5 | 10+ | Eligible | Eligible | Eligible | Eligible |
Tier | Experience | Light | Moderate | Heavy | Extensive |
---|---|---|---|---|---|
1 | 0 | 70% | Ineligible | Ineligible | Ineligible |
2 | 1-2 | 70% | 70% | 70% | Ineligible |
3 | 3-4 | 75% | 75% | 75% | 70% |
4 | 5-9 | 75% | 75% | 75% | 70% |
5 | 10+ | 75% | 75% | 75% | 70% |
Tier | Experience | Light | Moderate | Heavy | Extensive |
---|---|---|---|---|---|
1 | 0 | N/A | Ineligible | Ineligible | Ineligible |
2 | 1-2 | N/A | N/A | N/A | Ineligible |
3 | 3-4 | N/A | N/A | N/A | 85% |
4 | 5-9 | N/A | N/A | N/A | 90% |
5 | 10+ | N/A | N/A | N/A | 90% |
Purchase price: $100,000
Tier: 1 (no verifiable experience)
Credit score: 695
Rehab budget: $24,000
ARV: $150,000
Initial advance: $75,000 (75%)
Construction holdback: $24,000
Total loan amount: $99,000
LTARV: 66%
LTFC: 79.8%
Interest accrual: Full boat
Purchase price: $100,000
Tier: 1 (no verifiable experience)
Credit score: 750
Rehab budget: $24,000
ARV: $150,000
Initial advance: $80,000 (80%)
Construction holdback: $24,000
Total loan amount: $104,000
LTARV: 69.33%
LTFC: 83.9%
Interest accrual: As disbursed
Purchase price: $100,000
Tier: 4 (5 similar projects completed)
Credit score: 750
Rehab budget: $20,000
ARV: $150,000
Initial advance: $90,000 (90%)
Construction holdback: $20,000
Total loan amount: $110,000
LTARV: 73.33%
LTFC: 91.67%
Interest accrual: As disbursed
Our default underwriting model focuses on lending against your cost basis—that is, the total of your purchase price and any capital you’ve already invested into the project. This helps ensure you maintain equity and limit risk.
But in some Arkansas refinance situations, particularly where the property has appreciated over time, we allow leverage based on the As Is value instead. This is common in markets like Bentonville or Little Rock, where values have steadily climbed over the past few years.
To qualify:
Property must be habitable and in at least C4 condition
It should have been owned for 3+ years
Previous lender’s payoff letter must not include late fees or default interest
Credit score of 680+
Experience Tier 3 or higher (minimum of 4 similar verifiable projects)
Sale comps must support the As Is value over your cost basis
You’ll need a scenario that makes sense—such as a long-term rental that’s now vacant and needs renovation before listing
If you’re buying from a wholesaler in Arkansas—whether in Pulaski County, Washington County, or a smaller town like Cabot—we offer flexible terms. We can often include the assignment fee or double-close price markup in your cost basis.
Here's how it works:
Example:
A-B Contract (wholesaler and original seller): $100,000
B-C Contract (your contract): $125,000
As Is Value: $125,000
Value Basis: $120,000 (maximum 20% markup allowed)
We can finance up to 20% markup between A-B and B-C prices
We do not finance finder's or referral fees
MLS-listed properties may not qualify for wholesale markup financing
Must be an arm’s length transaction
Full contract chain (A-B, B-C) must be provided
Wholesaler must share their operating agreement
If you’re renovating a property in Arkansas—whether it’s a light cosmetic rehab in Hot Springs or a full overhaul in Pine Bluff—your construction holdback will be structured as a draw reimbursement.
Funds are released in stages as work is completed. You’ll need to submit draw requests along with proof of progress.
You can also choose to skip the holdback if you have the liquidity to fund renovations yourself.
If your total loan is $100,000 or more, you’ll only pay interest on the drawn portion (interest is “As Disbursed”).
Criteria | Draw Processing 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 | 50% reimbursable (with receipt) |
Draw inspection | App-based (self-serve) |
Draw turnaround | 0 to 2 business days |
Draw fee | $270 |
Wire fee | $30 |
Every Arkansas hard money loan requires a valuation. This could be:
A 3rd party interior appraisal
A 3rd party exterior appraisal
An in-house valuation (only for experienced borrowers with strong credit)
Criteria | Requirement |
---|---|
Property type | Single family, 2–4 units |
Experience Tier | 4 or higher |
Credit score | 720+ |
Rural | No |
New market | No |
LTARV | 70% maximum |
Note: Even when you meet these guidelines, we may still request a 3rd party appraisal.
REO sales
Foreclosure auctions
Sheriff's sales
Bankruptcy sales
Must be dated within 120 days of settlement or recertified if between 120–179 days.
Property type | Appraisal forms |
---|---|
Single family | 1004 + 1007 |
2–4 units | 1025 + 216 |
Condo | 1073 + 1007 |
We handle appraisal orders and coordinate directly with an AMC. You’ll be responsible for the invoice. Loans with unpaid appraisal invoices will be paused until payment is received.
Already have an appraisal? If it was ordered via an approved AMC and meets the following, we may be able to accept it:
Not older than 180 days at closing
Signed transfer letter certifying compliance with AIR (Appraiser Independence Requirements)
PDF and XML copies of the report
Paid invoice documentation
In Arkansas cities where housing inventory is tight—think Conway, Searcy, or West Memphis—you may come across properties that don’t need any work. If your appraisal confirms a C4 condition rating or better, we can fund up to 75% of As Is value.
Criteria | Guideline |
---|---|
LTV (maximum) | Tier 1–2: 70% Tier 3–5: 75% |
LTFC (maximum) | Tier 1–2: 80% Tier 3–5: 90% |
Appraisal condition | C1, C2, C3, or C4 |
Loan Term (maximum) | 12 months |
Criteria | Details |
---|---|
Loan Amount | $25,000 – $2,000,000* |
Units per Property | 1 – 4 |
Property Types | Non-owner occupied residential (SFR, 2–4 unit, condo, townhome) |
Minimum Size | SFR: ≥700 SQFT Condo/2–4 Unit: ≥500 SQFT per unit |
Max Acreage | 5 acres |
LTC | Up to 90% purchase, 100% rehab |
LTARV | Up to 75% |
Down Payment | Minimum $10,000 for purchase prices under $100K |
Loan Term | 12 months standard; 18–24 months available |
Extensions | Up to 50% of original term (fees apply) |
Points | 1.5 to 2 (minimum $2,000) |
Prepayment Penalty | None |
Occupancy | Business purpose only, non-owner occupied |
Transaction types | Purchase or refinance |
Geographic Region | All U.S. states except: AK, AZ, HI, MN, ND, NV, OR, SD, UT, VT |
Amortization | Interest-only with balloon payment |
Interest Accrual Method | Under $100K: Full Boat $100K+: As Disbursed |
Hard money loans are designed for short-term use—usually 12 to 24 months. Most Arkansas investors pay them off well within the original term. However, delays can happen, especially if you're dealing with unexpected zoning issues in places like Little Rock or tenant holdovers in older properties around Pine Bluff.
That’s why OfferMarket allows extensions—but only when absolutely necessary.
Avoid extensions by:
Choosing reliable contractors with strong references
Avoiding aggressive rehab scopes that stretch your liquidity
Avoiding areas with slow permitting processes
Securing immediate property access (no remaining tenants or leaseholds)
Ensuring a dual exit strategy (flip or refinance)
Initial Loan Term | Max Extension |
---|---|
12 months | 6 months |
18 months | 9 months |
24 months | 12 months |
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 |
To extend your loan, you must confirm that your builders risk insurance policy is active for the full extension period.
We do not fund loans for the following property types in Arkansas:
Mixed-use
5+ unit multifamily
Condotels or co-ops
Mobile or manufactured homes
Commercial-use buildings
Cabins, log homes, or properties on dirt/unpaved roads
Properties with oil/gas leases
Farms, ranches, or orchards in operation
Seasonal or short-term rentals
Unique, exotic, or luxury homes
Item | Requirements / Eligibility |
---|---|
Borrowing Entities | LLC or Corporation only (nonprofits not eligible) |
Eligible Borrowers | US Citizens, Permanent Residents, Foreign Nationals (qualified) |
Foreign Nationals | Valid Passport + US Visa + FICO score (if Guarantor) |
Credit Requirements | Minimum 680 FICO (660–679 eligible by exception) |
Guaranty Structure | Purchase: 51% must guarantee Refinance: 100% must guarantee |
Recourse | Full recourse |
Net Worth | Guarantor net worth ≥ 50% of loan amount |
Liquidity is essential to project success. OfferMarket verifies that Arkansas borrowers have enough capital to safely cover their cash to close and rehab buffer.
Cash to close + 25% of rehab budget
Personal bank accounts
Business accounts (with verified ownership)
Retirement accounts (50% of balance counts)
Brokerage accounts
Entity accounts with verified operating agreement
Verification process:
2 most recent statements
New accounts accepted (no seasoning requirement)
Letter of explanation required for large/unusual deposits
You don’t need a business bank account, but it’s recommended for accounting and management. You also don’t need to move funds—just show proof of access.
We review your credit and background to ensure project success and loan performance.
Item | Guideline |
---|---|
Credit score method | Middle of 3 scores or lower of 2 |
No mortgage tradelines | 6 months of interest reserves required |
Less than 5 credit tradelines | 6 months of interest reserves required |
Bankruptcy (4–7 years old) | Minimum 3 months of interest reserves |
Bankruptcy/foreclosure (under 4 years) | Not eligible |
Late mortgage payments (past 12 months) | May require LOE, subject to discretion |
Past due tradelines or liens | Must be paid before funding |
Civil lawsuit (pending) | LOE required, subject to committee review |
Criminal lawsuit or financial crime | Not eligible |
In some Arkansas deals, interest reserves are required to cover payments early in the term. These are collected upfront and held in escrow, reducing pressure on your monthly cash flow.
Scenario | Interest Reserve Requirement |
---|---|
Lender discretion | 0 months |
Guarantor FICO 700+ | 1 month |
FICO 660–699 | 3 months |
Low FICO + background issues | 6 months |
Financed Interest Payments
You may qualify to finance your interest payments to preserve cash. Instead of paying monthly, interest accrues and is added to your final payoff.
Example:
Loan amount: $100,000
Interest: 12%
Held for 9 months
Accrued interest: $9,000
Payoff Statement:
Principal: $100,000
Interest: $9,000
Total: $109,000
This is helpful in longer Arkansas flips where you want to prioritize rehab over monthly payments.
OfferMarket supports a range of property types across Arkansas, but certain scenarios require extra documentation:
New markets require a GC agreement or letter of explanation
Wholesale deals, assignment fees, and price run-ups require full contract chains
Major renovations may require permits or letters from engineers/architects
Always include purchase contracts, settlement statements, and operating docs
Builders risk insurance is mandatory for every Arkansas hard money loan. It protects the structure and covers liability during construction or vacancy.
Coverage Type | Minimum Limit |
---|---|
Dwelling | Replacement Cost or Loan Amount |
Liability | $1M per occurrence / $2M aggregate |
Builders Risk | Included |
Flood | Greater of $250K or loan balance (if required) |
AM Best Rating: A- VIII or better
Policy type: Special Form
Deductible: $1,000 – $5,000
Lender’s Designation: Mortgagee + Additional Insured
Cancellation: 30-day notice
No exclusions for wind, hail, or named storms
💡 As soon as you take ownership, install locks, smoke detectors, and security cameras to ensure compliance and prevent insurance disputes.
(*) In states where NMLS license is required for business purpose lending or we do not directly lend, OfferMarket operates as a rate shopping service and refers your loan to a licensed capital provider.
Yes! It’s common for real estate investors in Arkansas to have multiple active hard money loans. From managing a flip in Fayetteville while stabilizing a rental in Pine Bluff, OfferMarket supports multi-loan strategies. That said, we will review your liquidity, capacity, and performance to ensure you're not overextended.
Yes. All hard money loans are business-purpose loans issued to LLCs or corporations. Even though you're investing in residential real estate, your loan is classified as a commercial loan due to its investment nature.
The minimum loan amount is $25,000, making it accessible for investors targeting lower-priced properties in Arkansas cities like Jonesboro or West Memphis.
Eligible | Ineligible |
---|---|
- Single-family residences - 2–4 unit multifamily - Townhomes - Condominiums (warrantable) |
- Mixed-use properties - Mobile/manufactured homes - 5+ unit multifamily - Commercial buildings - Cabins/log homes - Properties on dirt roads - Short-term/vacation rentals |
We use two key ratios:
LTV (Loan-To-Value): Loan amount divided by the lower of your purchase price or As Is appraised value.
LTARV (Loan-To-After-Repair Value): Total loan amount (initial advance + rehab holdback) divided by the post-rehab appraised value.
These metrics help ensure you're not overleveraged at any stage of the project.
We require a minimum credit score of 680. Exceptions may be considered for scores down to 660 if other factors—like liquidity or experience—are strong. Only guarantors are subject to credit review, not passive members of the LLC.
Experience is not required, which makes our Arkansas hard money loan program ideal for first-time investors. Still, having completed similar rehab projects can help you qualify for higher leverage, better rates, and more complex renovations.
No. To count as experience, you must have taken financial responsibility for the purchase, rehab, and disposition of a property. Wholesaling is valuable but doesn’t meet the criteria for experience tiers.
Loan File Section | Required Documentation |
---|---|
Purchase Contract | Fully executed by buyer and seller |
Credit Report | Soft tri-merge credit report for each guarantor |
Background Report | For each member of the borrowing entity |
ID Verification | Government-issued ID (driver’s license, passport, etc.) |
Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, W-9, Certificate of Good Standing |
Scope of Work | Detailed rehab budget |
Appraisal Report | Ordered by OfferMarket after payment of invoice |
Bank Statements | Two most recent monthly statements (personal or business) |
Track Record | Required for all guarantors (if applicable) |
Letter of Explanation | If requested (i.e., large deposits, credit blemishes) |
Loan File Section | Required Documentation |
---|---|
Settlement Statement | From original purchase transaction |
Credit Report | Soft tri-merge credit report for each guarantor |
Background Report | For each member of the borrowing entity |
ID Verification | Government-issued ID (driver’s license, passport, etc.) |
Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, W-9, Certificate of Good Standing |
Sunk Costs | Documentation of all capital already invested |
Scope of Work | Rehab budget and timeline for remaining improvements |
Appraisal Report | Ordered after payment; uploaded to loan file |
Bank Statements | Two most recent statements showing liquidity |
Letter of Explanation | If requested by underwriting (e.g., past-due accounts) |
Criteria | Requirement |
---|---|
Experience | Minimum of 3 completed projects similar in scope and price point |
Market Liquidity | At least 3 comparable sales within a 2-mile radius, sold on MLS in the past 6 months |
Credit Score | Minimum 680 FICO with at least 5 tradelines, each with 24+ months history |
Rural Designation | Not eligible for properties designated as rural by CFPB or USDA, or marked rural in appraisal |
Track Record | Required for each guarantor; must show relevant project history and completion responsibilities |
These added guidelines help manage risk in larger transactions across Arkansas—especially in areas where price points or liquidity can vary from market to market (e.g., rural regions or secondary cities).
Term | Definition |
---|---|
ADU | Accessory Dwelling Unit – a secondary housing unit on the same lot as a primary home |
Arms-length | A deal between unrelated parties that ensures market-based terms |
Non Arms-length | A transaction involving related parties, possibly impacting objectivity or valuation |
Initial Advance | The part of the loan used to fund the purchase price, disbursed at closing |
Construction Holdback | Funds set aside for renovation costs, released through draw reimbursements |
Interest Reserves | Interest payments collected upfront and held in escrow for future application |
LOE | Letter of Explanation – a brief document addressing discrepancies or risks (e.g., late payments, credit concerns) |
LTC (Loan-To-Cost) | Loan amount divided by total project cost (purchase price + rehab budget) |
LTFC (Loan-To-Full-Cost) | Used for extensive rehab projects; measures total loan vs. full project cost |
LTV (Loan-To-Value) | Loan amount divided by the property's As Is value (before repairs) |
LTARV | Loan-To-After-Repair Value: total loan divided by expected post-rehab value |
As Disbursed Interest | Interest accrues only on the amount of loan funds that have been disbursed |
Full Boat Interest | Interest accrues on the entire approved loan amount, regardless of disbursement timing |
Lopsided Deal | When the rehab budget exceeds the property's purchase or As Is value |
GC Agreement | General Contractor agreement outlining duties and responsibilities for the project |
DSCR | Debt Service Coverage Ratio – property income ÷ debt service obligations (PITIA) |
OfferMarket Capital LLC is proud to serve real estate investors throughout Arkansas—providing fast, flexible, and affordable financing for your residential projects in cities like Little Rock, Fayetteville, and Jonesboro.
We’re more than a lender—we’re your partner in building wealth through real estate. With zero prepayment penalties, interest-only terms, and customizable funding structures, our Arkansas hard money loan program is built for action-takers like you.
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