Hard Money Loan Connecticut

Last updated: May 9, 2025

At OfferMarket, we’re committed to helping Connecticut real estate investors accelerate wealth creation through strategic property investments. Whether you're flipping in Fairfield County, buying off-market properties in New Haven, or BRRRRing in Bridgeport, we’re here to back your success every step of the way.

To support your journey, we offer an all-in-one real estate investor platform:

💰 Private lending
☂️ Insurance rate shopping
🏚️ Off-market investment opportunities

Our Connecticut Hard Money Loan program offers fast, flexible, and competitively priced financing solutions tailored for 1-4 unit residential investment properties.

Whether your plan is to flip the property or hold and refinance with a DSCR loan, we’re eager to support your vision and earn your trust.

Let’s explore what makes OfferMarket’s Hard Money Loan program a top choice for Connecticut investors.

What is a hard money loan?

A hard money loan is a short-term, asset-backed loan secured by residential investment real estate (typically 1-4 unit properties). It’s commonly used to purchase, refinance, and/or renovate the property—either for a quick flip or to retain it as a rental in your portfolio.

These loans are often called “bridge loans” or “fix and flip loans” in investor circles. They provide crucial speed and flexibility when conventional financing just won’t cut it—especially in competitive or off-market situations often found in Connecticut’s hot zip codes.

Common Hard Money Loan Scenarios

Connecticut real estate investors turn to hard money loans for a range of strategic situations:

• Acquiring and renovating outdated properties in places like Waterbury or Norwalk, minimizing out-of-pocket expenses.

• Refinancing fast-cash purchases from sellers demanding quick closings (common in off-market deals).

• Paying off an existing loan on a project still under renovation—ensuring work can be completed without delay.

• Purchasing undervalued properties with no renovation intent, aiming to resell “as-is” for a profit.

• Refinancing an all-cash acquisition, extracting equity to fund the next opportunity.

• Extending time post-renovation to sell or refinance a stabilized property at a better valuation.

How It Works

A Connecticut hard money loan has two core components:

• Initial Advance – This portion of the loan covers the acquisition cost and is wired to your title company at closing.
• Construction Holdback – This part is reserved for your rehab budget and disbursed through draw reimbursements as work progresses.

Our structure is designed for investor flexibility. Use only the initial advance, only the rehab budget, or both—whatever fits your strategy.

Most borrowers maximize leverage by using both components, but if you're funding rehab personally or skipping renovations altogether, you can tailor the loan to your needs.

Whether your strategy is to sell post-reno or refinance into a DSCR loan and rent it out, you’re covered. It’s even OK if your strategy changes mid-project—our program supports flexibility in response to Connecticut’s dynamic market conditions.

Say you start a flip in Stamford but end up holding the property due to soft resale activity—refinancing into a DSCR rental loan with a low prepay penalty might become your best move. Or you could pivot the other way: planning a BRRRR in Hartford, but realizing the resale market is hot and provides faster ROI.

The key? Always target deals with strong dual exit potential. That’s how seasoned Connecticut investors manage risk and optimize profits.

Who uses hard money loans?

Across Connecticut, we work with a wide range of investors—whether it’s first-time buyers flipping their first duplex in New Britain or seasoned pros rehabbing properties across the I-95 corridor.

Hard money loans are perfect for:

Fix and Flip Investors
Flippers looking for speed and leverage to buy, renovate, and sell for a profit.

Rental Property Investors (BRRRR Method)
Connecticut landlords using the buy-rehab-rent-refinance-repeat strategy to grow their passive income portfolios.

(*) Want to lock in better terms after your rehab? Explore our Fix and Rent bundle: it combines your Connecticut hard money loan with a discounted DSCR refinance.

Many of our clients in CT blend both strategies—some properties are flipped for cash flow, others are refinanced and held for long-term wealth. Having multiple exit options is how our most successful borrowers stay ahead.

Hard Money Loan Program Guidelines

Project Eligibility

We’re proud to report that fewer than 0.5% of our loans—across Connecticut and beyond—have ever defaulted. That’s not luck. It’s the result of a deliberate focus on risk management and partnership.

Real estate investing can be risky, especially for less experienced borrowers attempting extensive renovations. In our experience, overreaching on heavy rehab jobs in towns with long permitting cycles (like parts of New London County) often leads to delays, cost overruns, and stress—even for seasoned investors.

That’s why we emphasize projects with a reasonable scope of work and clear, achievable timelines.

We’re not just your lender—we’re your capital partner and risk advisor. Our eligibility and rehab scope guidelines are designed to keep you safe and successful.

Initial Advance

Your initial advance is based on a few key variables:

• Your real estate experience (number of rehabs and properties owned).

• Credit score (minimum 680, ideally 720+).

• Deal-specific metrics like projected ROI and DSCR.

• Borrower type—Realtors, contractors, and engineers may qualify for higher leverage.

If your purchase price exceeds our appraiser’s “As Is” valuation, we’ll base the loan on the lower number. Our goal is to ensure sound lending and protect your equity position.

Thinking of flipping a property in Hartford with a projected profit of $20,000? If your projected ROI is over 30%, that will help qualify for higher leverage. If you’re refinancing to rent, a DSCR of 1.1+ is required.

Note: Rural properties (some in Litchfield County) require more experience and offer reduced leverage.

Experience-based Tiers

Initial Advance by Tier

Adjustments to Initial Advance

Rehab Scope Classification

Example: If you’re adding an in-law suite to a New Haven duplex, it may fall under “Extensive” scope and trigger LTFC limits.

Rehab Scope Eligibility

LTARV Limits

LTFC Limits

LTFC (Loan-To-Full-Cost) applies to “lopsided” deals where the rehab budget exceeds the property price.

Example: No Experience

• Purchase Price: $100,000

• Tier: 1 (0 projects)

• Credit Score: 695

• Rehab Budget: $24,000

• ARV: $150,000

• Initial Advance: $75,000 (75%)

• Holdback: $24,000

• Total Loan: $99,000

• LTARV: 66%

• LTFC: 79.8%

• Interest Accrual: Full boat

Example: No Experience, Excellent Credit

• Credit Score: 750

• Initial Advance: $80,000 (80%)

• Total Loan: $104,000

• LTARV: 69.3%

• LTFC: 83.9%

• Interest Accrual: As disbursed

Example: 5 Experience

• Purchase Price: $100,000

• Tier: 4 (5 similar verified projects)

• Credit Score: 750

• Rehab Budget: $20,000

• ARV: $150,000

• Initial Advance: $90,000 (90%)

• Holdback: $20,000

• Total Loan: $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 default method for underwriting a refinance in Connecticut involves lending against your actual investment—the total of your purchase price and improvements. This keeps your equity in place and aligns incentives for a safer loan.

However, for seasoned properties where the As Is market value exceeds your cost basis, you may qualify for an initial advance based on that higher value. Here's what we require:

• Property must be in livable condition (C4 or better).

• Must be held for at least 3 years.

• Clean payoff history—no default interest, no excessive fees.

• Credit score of 680+.

• Minimum Tier 3 experience (4+ completed projects).

• Solid market comps proving that As Is value > cost basis.

• Clear use case—i.e. the property was rented, now vacated, and ready for renovation or sale.

Transactions involving wholesalers, price run-ups

In Connecticut’s competitive real estate environment, wholesale deals are common—especially in cities like Bridgeport and Hartford. If you're purchasing through a wholesaler, OfferMarket can include the assignment fee or markup in your loan basis, up to a 20% markup threshold.

Example:

• A-B Contract (owner to wholesaler): $100,000

• B-C Contract (you as buyer): $125,000

• As Is Value: $125,000

• Value Basis for Initial Advance: $120,000 (cap at 20% markup)

Guidelines:

• Assignment/double-close markup capped at 20% of A-B price.

• No financing if property was listed on MLS.

• Full documentation of chain of contracts required.

• Must be arm’s length—no insider deals.

• Finder/referral fees aren’t financed.

Construction Holdback

The construction holdback portion of your loan is drawn down as work progresses. Funds are reimbursed based on completed milestones within your rehab scope.

If you're using your own capital for renovations and don’t require the holdback, you may opt out of this component.

Loans over $100,000 accrue interest only on disbursed funds—helping you keep costs down during the project.

Appraisal and In-house Valuation

Every OfferMarket hard money loan in Connecticut requires a valuation. Depending on your borrower profile and the property, we may use:

• In-house valuation

• 3rd party exterior appraisal

• 3rd party interior appraisal

In-house valuation

Eligible only if:

• Property is SFR, duplex, triplex, or quad.

• Borrower is Tier 4 or higher.

• Credit score is 720+.

• Property is not rural.

• Property is not in a new market.

• LTARV is 70% or less.

We reserve the right to require a full appraisal at our discretion.

Exterior Appraisals

These are allowed if the property is acquired via:

• REO sale

• Foreclosure or sheriff’s sale

• Online auction

• Bankruptcy

Note: If the appraisal is 120–179 days old at closing, it must be re-certified.

Interior Appraisals

All other scenarios will require a full interior appraisal.

We handle appraisal ordering and invoice coordination directly through our appraisal management company (AMC).

Appraisal Transfer

Already have an appraisal from a previous lender? We can transfer it if:

• Ordered through an approved AMC.

• Less than 180 days old at closing.

• Re-certified if 120–179 days old.

• Full transfer package is provided (report, XML, invoice, and AIR certification).

Scenario: Stabilized Hard Money Loan

If your Connecticut property is turnkey with no deferred maintenance (appraisal rating C4 or better), we can offer financing up to 75% of its current value.

This “Stabilized” loan type is ideal for rent-ready properties.

Criteria

Key Loan Details

Extensions

Hard money loans are short-term by design, and most of our Connecticut borrowers complete their projects well within the original 12–24 month term. That said, we do offer structured extensions—though it’s best to avoid them whenever possible.

To stay on track, avoid:

• Inexperienced contractors

• Overly ambitious renovation scopes

• Slow-zoning towns (parts of coastal Connecticut come to mind)

• Properties with inherited tenants or eviction risks

• Deals with no clear plan to flip or refinance

Extension Limits

Extension Terms and Fees

Note: You must show proof of builders risk insurance active for the extension period.

Ineligible Property Types

We do not fund loans for the following:

• Mixed-use

• 5+ unit multifamily

• Condotels, co-ops

• Manufactured/mobile homes

• Commercial buildings

• Cabins, log homes

• Properties with oil/gas leases

• Working farms or ranches

• Vacation/short-term rentals

• Unique or luxury properties

• Dirt or unpaved road access

Exception Scenarios

We may offer funding exceptions on:

• Guarantor credit between 660–679

• Ground lease / leasehold ownership

• SFRs between 500–699 sq ft

• 2–4 unit properties with one or more units 400–499 sq ft

• Loans based on As Is value exceeding cost basis

• Non-arm’s-length purchases

• Financed interest payments

Borrower and Guarantor Requirements

Liquidity Verification

You must demonstrate liquidity to cover both:

• Estimated cash to close

• 25% of the total renovation budget

Acceptable liquid assets:

• Checking/savings accounts (personal, business)

• Brokerage accounts

• Retirement accounts (50% haircut)

• Other business accounts (with operating agreement)

No need to transfer these funds—just verify via your most recent two statements.

Credit and Background Items

• Middle FICO score used (of 3 scores)

• Lowest used (if only 2 scores)

• No mortgage tradelines = 6 months reserves

• <5 tradelines = 6 months reserves

• Bankruptcy >4 years old = OK

• Foreclosure >4 years = OK

• Bankruptcy/foreclosure <7 years = 3+ months reserves

• Late mortgage payments = Letter of Explanation required

• Delinquent tradelines = Must be cleared before closing

• Liens/judgments = Must be cleared before closing

• Civil lawsuits = LOE + loan committee discretion

• Criminal cases = Not eligible (if serious or financial)

Interest Reserves

Financed Interest Payments

Rather not make monthly interest payments during your rehab?

You may qualify to finance your interest—letting it accrue and get added to your final payoff.

Example:

• Loan Amount: $100,000

• Interest Rate: 12%

• Term: 9 months

• Accrued Interest: $9,000

• Final Payoff: $109,000 (principal + interest)

Property Sourcing Guidelines

When sourcing your next investment property in Connecticut, it’s important to be prepared with the right documentation—especially when working in fast-moving or unconventional scenarios. Our underwriting process is designed to move swiftly, but we rely on your complete and accurate documentation to keep things on track.

Key Points:

• New Market Entries: If you're investing in a town or neighborhood where you haven’t completed a project before—say, your first rehab in Middletown or Norwich—you’ll need to provide either:

  • A signed General Contractor agreement

  • Or a Letter of Explanation if you’ll be self-managing the rehab without a GC.

• Previous Price Increases & Wholesale Deals:
  If the subject property has recently changed hands at a higher price (or if you’re purchasing from a wholesaler), expect additional documentation and review. This includes full transparency on the assignment fee or double-close markup.

• Non-Arm’s-Length Transactions:
  Buying from a family member or related entity? We’ll need more details to verify fair market terms and ensure the deal meets program guidelines.

• Condos, Conversions & Major Rehabs:
  Projects involving condos, adaptive reuse (e.g., warehouse-to-residence), or heavy structural renovations must include:

  • Architectural or engineering letters

  • Or active building permits supporting the scope of work

• Submission Checklist:
  Every deal—whether it’s a flip in Stamford or a BRRRR in Waterbury—must be accompanied by:

  • A fully executed purchase contract

  • Settlement statement (if applicable)

  • Payoff letter (for refinances)

  • Borrower’s track record

  • LLC/corporate formation documents (Articles, Operating Agreement, W-9)

By proactively gathering these materials, you'll accelerate your Connecticut hard money loan approval and move closer to closing day with confidence.

Insurance Guidelines for Hard Money Loans

To protect your Connecticut investment, you’ll need Builders Risk insurance (a.k.a. fix and flip coverage). It shields your project from fire, liability, and other costly setbacks during renovation.

Required Coverage

Policy Requirements

💡 Pro tip: Immediately after closing, install smoke alarms, locks, and security cameras to stay compliant and avoid denied claims.

Frequently Asked Questions

What states does OfferMarket fund hard money loans?

• Arizona*
• Alabama
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Mississippi
• Missouri
• Minnesota*
• Montana
• Nebraska
• Nevada*
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota*
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota*
• Tennessee
• Texas
• Utah
• Vermont*
• Virginia
• Washington
• Washington DC
• West Virginia
• Wisconsin
• Wyoming

(*) 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.

Can I have multiple hard money loans at once?

Absolutely. Many of our Connecticut clients manage multiple loans. We monitor liquidity and deal volume to help you scale responsibly.

Are hard money loans commercial?

Yes. Because they’re issued to LLCs or corporations and used for investment properties, they’re classified as commercial.

What’s the minimum loan amount?

$25,000.

What property types are eligible?

Non-owner occupied 1–4 unit residential properties:

• SFRs

• 2–4 unit multifamily

• Condominiums (warrantable only)

• Townhomes and PUDs

How is LTV calculated?

Our most common metric is Loan-to-After-Repair-Value (LTARV).

• Initial Advance: Based on lower of purchase price or appraised As Is value

• LTARV: Total loan ÷ After Repair Value

What are the credit and experience requirements?

• Minimum credit score: 680 (exceptions possible)

• Experience isn’t required but does help boost leverage

What documents do I need?

At OfferMarket, we’ve streamlined the loan documentation process to help Connecticut investors move quickly and efficiently. Our secure Loan File system organizes all your uploads and makes future applications even faster by storing reusable documents.

Purchase Transaction Requirements

Refinance Transaction Requirements

Are there special requirements for loans over $1M?

Yes. While we’re happy to fund Connecticut deals up to $2,000,000, loans exceeding $1 million come with enhanced scrutiny to ensure safe leverage and proper deal structure.

For loans above $1M:

• Experience: Minimum Tier 3 (3+ projects); experience at similar price points is ideal.

• Comps: Minimum of 3 recent MLS comps within a 2-mile radius (sold in last 6 months).

• Credit: 680+ score with at least 5 active tradelines, each with 24+ month history.

• Rural Areas: Ineligible for $1M+ loans (as defined by CFPB and USDA).

• Track Record: Must be documented and verifiable for all guarantors.

Glossary of Key Terms

Instant Connecticut Hard Money Loan Quote

OfferMarket Capital is your trusted private lending partner for Connecticut real estate investment. From Hartford to Stamford, we help local investors close fast and scale smart—with tailored hard money and DSCR financing.

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Join thousands of savvy investors using OfferMarket every month. Membership is 100% free.

Start your Connecticut hard money loan quote now.

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