Hard Money Loan Idaho
All steps completed - you're finished
Last updated: May 9, 2025
At OfferMarket, our mission is to help you unlock long-term wealth through real estate investing. Whether you’re navigating the competitive real estate scene in Boise, flipping properties in Idaho Falls, or building a rental portfolio in Twin Falls, our all-in-one platform is here to support you every step of the way:
💰 Private lending
☂️ Insurance rate shopping
🏚️ Off-market properties
Our Idaho Hard Money Loan program is engineered to give you swift, reliable, and cost-effective financing so you can acquire, refinance, and improve 1-4 unit residential investment properties across the Gem State.
No matter your exit strategy—whether you're flipping a fixer-upper in Nampa or rehabbing a buy-and-hold in Coeur d'Alene—we’re here to earn your trust and become your go-to lending partner.
Let’s explore what makes OfferMarket’s Idaho Hard Money Loan Program stand out.
What is a hard money loan?
A hard money loan is a short-term financing solution secured by real estate—typically 1-4 unit residential properties—used to purchase, refinance, or rehab the property for resale or rental purposes.
Hard money loans are also commonly called “bridge loans” or “fix and flip loans” by both Idaho investors and lenders. These terms are often used interchangeably, and while the label may vary, the goal remains the same: provide fast capital backed by the property itself.
Hard money loan scenarios
In Idaho’s dynamic property market, investors typically rely on hard money loans for the following use cases:
Acquiring and renovating distressed properties — for instance, buying a dated home in Boise’s Bench neighborhood, upgrading it, and selling for profit without exhausting your own liquidity.
Refinancing a property bought in cash — such as grabbing a cash deal in Pocatello to win a bidding war, and now needing to cash out to fund the renovation.
Paying off an existing loan on a fixer-upper — if your current lender needs to be paid back but your rehab is still in progress, a hard money refinance helps you finish the job.
Purchasing investment properties without planned renovations — like buying a foreclosure in Caldwell to hold or flip in its current condition.
Cash-out refinancing on already renovated assets — tap into equity after buying below market value in a market like Idaho Falls, and reinvest in another opportunity.
Replacing an existing loan on stabilized assets — you’ve finished your rehab and need more time to sell or refinance with a DSCR loan.
How it works
Every hard money loan from OfferMarket consists of two main components:
- Initial Advance — This portion of the loan is applied toward the property purchase price. It’s sent directly to the title company at closing.
- Construction Holdback — This amount is reserved for your renovation budget and is released through draw reimbursements as you complete work on the property.
These components are flexible—you can use just one or both depending on your investment strategy. Many Idaho investors choose both for maximum leverage, though some seasoned flippers prefer to self-fund renovations and only take the initial advance.
If you bought your property in cash, you can still secure a construction holdback to cover 100% of your rehab costs. On the flip side, if your game plan doesn’t involve renovations, you can opt out of the holdback entirely.
Your exit strategy will determine how you transition out of the loan—whether that’s selling for a profit or refinancing into a long-term DSCR loan. It's common for Idaho investors to shift strategies mid-project based on market signals. For example:
You start planning to BRRRR a rental in Meridian, but the resale market is so hot you decide to sell instead.
You plan to flip a house in Garden City, but interest rates spike or buyers stall, so you pivot to refinancing and holding the asset as a rental.
Having flexibility in your exit strategy is critical—and our program is designed with that in mind.
Who uses hard money loans?
Fix and flip investors — targeting neighborhoods in Boise, Idaho Falls, or Lewiston for high-margin projects.
Buy-and-hold investors — implementing BRRRR strategies in rapidly growing cities like Meridian and Twin Falls.
Our clients often blend strategies, flipping some homes while holding others depending on returns and market conditions. This flexibility is key to scaling a profitable portfolio across Idaho’s diverse property markets.
Idaho Hard Money Loan Program Guidelines
| 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 |
Project Eligibility
We want Idaho investors to succeed—so much so that fewer than 0.5% of all loans we've originated nationwide have resulted in foreclosure. Our hard money lending approach is conservative, consistent, and focused on keeping you safe while scaling your portfolio.
But we’re also realists.
Projects in Boise or Idaho Falls with major structural challenges, large additions, or complete gut jobs are inherently riskier—especially for newer investors. Delays, cost overruns, and market shifts can quickly derail profits. That’s why we emphasize clear expectations and realistic scope evaluations.
Think of us not just as a lender, but as your financial and risk advisor.
Below, we outline how rehab scope impacts project eligibility based on your experience level.
Initial Advance
Your initial advance is calculated using your experience tier and specifics of the deal.
We look at:
How many investment properties you’ve owned in the last 24 months.
How many verified rehab projects you’ve completed in the last 5 years.
Your credit score (680+ minimum; 720+ preferred).
Professional background—Realtors, General Contractors, and Engineers may receive increased leverage.
If the purchase price in your Idaho deal is higher than our appraisal or valuation of the “As Is” value, we’ll base your loan on that valuation instead.
Your exit strategy also influences leverage:
Sale: Requires a projected gross margin of 30%+ and at least $15,000 profit.
Refinance: Should produce a DSCR of at least 1.1 after repairs.
If the property is in a rural part of Idaho—say, in Boundary County or Camas County—we apply additional limits and require a minimum of 3 completed projects.
Experience-based Tiers
| Tier | Verifiable experience |
|---|---|
| 1 | 0 |
| 2 | 1 to 2 |
| 3 | 3 to 4 |
| 4 | 5 to 9 |
| 5 | 10+ |
Initial Advance by Tier
| Tier | Initial advance (% of purchase price) |
|---|---|
| 1 | 80%* |
| 2 | 85% |
| 3 | 85% |
| 4 | 90% |
| 5 | 90% |
* 85% available with exceptional credit and liquidity.
Adjustments to Initial Advance
| Scenario | Adjustments |
|---|---|
| Credit score less than 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 required) |
Rehab Scope Classification
| 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 — e.g. ADU, additions, etc. |
Rehab Scope Eligibility
| 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 |
LTARV Limits
Your maximum Loan-To-After-Repair Value (LTARV) is based on your experience tier and the scope of the rehab. Below is how it works for Idaho projects:
| 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% |
LTFC Limits
For Idaho investors tackling intensive renovations where the rehab costs exceed the purchase price, we apply LTFC (Loan-To-Full-Cost) limits to ensure you’re invested in the success of your project.
| 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% |
Example: No Experience
Property in Twin Falls, ID
Purchase price: $100,000
Experience Tier: 1
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
Example: No Experience, Excellent Credit
Property in Coeur d’Alene, ID
Purchase price: $100,000
Tier: 1
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
Example: 5 Experience
Project in Boise Bench
Purchase price: $100,000
Tier: 4
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
Refinance Using As Is Value Instead of Cost Basis
In scenarios where your Idaho property has appreciated in value beyond your original cost basis, we can underwrite your loan using the As Is value rather than just your sunk costs, subject to conditions:
Property must be habitable (C4 condition or better)
3+ years of seasoning
No penalties or fees on existing payoff
Credit score 680+
Experience Tier: 3 or higher
Valid support for market value based on neighborhood comps
Strong case for value appreciation (e.g., long-term rental, now vacant and ready to upgrade)
Transactions Involving Wholesalers, Price Run-Ups
We recognize many Idaho investors acquire deals through assignment or double-close transactions. Here's how we handle those:
If the markup is reasonable (≤20%), we can include it in your cost basis. For example:
A-B Contract: $100,000
B-C Contract: $125,000
As Is Value: $125,000
Approved value basis: $120,000
Conditions:
Must be arm’s length
Cannot be listed on the MLS
Requires assignment chains and wholesaler documentation
We do not fund finders or referral fees
Construction Holdback
In Idaho, your construction holdback is disbursed in reimbursement draws. You’ll request funds as work is completed on the property.
Don’t need it? That’s fine—you can opt out and fund rehab with your own capital.
Loan over $100K? Interest is only charged on the funds you draw (as disbursed).
| Criteria | Guideline |
|---|---|
| Minimum draw amount | None |
| Maximum draw amount | 100% of remaining holdback |
| Minimum number of draws | 0 |
| Maximum number of draws | None |
| Materials delivered but not installed | 50% reimbursed (receipt required) |
| Draw inspection | Self-serve via mobile app |
| Draw turnaround | 0 to 2 business days |
| Draw fee | $270 |
| Wire fee | $30 |
Appraisal and In-House Valuation
We require a property valuation for all hard money loans in Idaho. This could be:
Full interior appraisal
Exterior-only appraisal
In-house valuation (if qualified)
In-house valuation available if:
Tier 4 or higher
720+ credit score
Property is 1-4 unit residential
Not in a rural or new market
LTARV ≤ 70%
OfferMarket may still request an appraisal at its discretion.
Exterior Appraisal
We accept exterior-only appraisals for Idaho properties in the following situations:
Bank-owned (REO) properties
Foreclosure auctions
Sheriff’s sales
Online real estate auctions
Bankruptcy sales
Timeline: Must be dated within 120 days of settlement. Between 120–179 days requires recertification.
Interior Appraisal
If your property doesn’t meet the criteria for exterior or in-house valuation, we’ll require a full interior appraisal.
| Property type | Appraisal forms required |
|---|---|
| Single family | 1004 + 1007 ARV with As Is value (non-gridded) |
| 2–4 Unit | 1025 + 216 ARV with As Is value (non-gridded) |
| Condo | 1073 + 1007 ARV with As Is value (non-gridded) |
OfferMarket orders the appraisal; you’ll receive a link to pay the invoice. We can’t proceed with funding until this is complete.
Appraisal Transfer
Already ordered your own appraisal? We may be able to use it, as long as:
Ordered by an approved AMC
Less than 180 days old at closing
Re-certified if older than 120 days
Transfer includes:
Signed letter certifying AIR compliance
PDF and XML versions of the appraisal
Invoice confirming it was paid
Scenario: Stabilized Hard Money Loan
If your Idaho investment property is already in solid shape—no deferred maintenance and an appraisal condition rating of C4 or better—we may fund up to 75% of its current As Is value. This is ideal for properties in cities like Boise, Meridian, or Idaho Falls that are rent-ready or resale-ready.
| Criteria | Guideline |
|---|---|
| LTV (maximum) | Tier 1: 70% Tier 2: 70% Tier 3+: 75% |
| LTFC (maximum) | Tier 1: 80% Tier 2: 80% Tier 3+: 90% |
| Appraisal condition rating | C1, C2, C3, or C4 |
| Loan Term (maximum) | 12 months |
Idaho Key Loan Details
| Criteria | Details |
|---|---|
| Loan Amount | $25,000 to $2,000,000* |
| Units per Property | 1 – 4 |
| Eligible Property Types | Non-owner occupied residential: single family, 2-4 units, condos, townhomes |
| Property Minimum Size | Single Family: ≥700 SQFT 2-4 Unit/Condo: ≥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 purchases under $100K |
| Loan Term | 12 months standard, 18–24 months for certain projects |
| Extensions | Up to 50% of original loan term |
| Points | 1.5 to 2 points (minimum $2,000) |
| Prepayment Penalty | None |
| Occupancy | Non-owner occupied – business purpose only |
| Transaction Types | Arms-length purchase, refinance |
| Geographic Region | All U.S. states except AK, AZ, HI, MN, ND, NV, OR, SD, UT, VT |
| Amortization | Interest-only with balloon payment at maturity |
| Interest Accrual Method | Loan < $100K: Full Boat Loan ≥ $100K: As Disbursed |
Extensions
Hard money loans are meant to be short-term. In Idaho, as elsewhere, completing your project on time is the best way to avoid extra costs.
Avoid extensions by:
Hiring experienced Idaho contractors
Avoiding overly ambitious rehab scopes
Ensuring legal access and permits
Having dual exit strategies: flip or rent/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 total loan amount |
| 3 months (2nd request) | 1.5% of total loan amount |
| 6 months (1st request) | 2.5% of total loan amount |
You must confirm builders risk insurance remains active during any extension.
Ineligible Property Types
These property types are not eligible for Idaho hard money loans:
Mixed-use properties
5+ unit multifamily
Co-ops, condotels
Mobile/manufactured homes
Commercial buildings
Cabins/log homes
Oil/gas lease properties
Active farms or ranches
Vacation or seasonal rentals
Exotic or luxury properties
Dirt or unpaved road access
Exception Scenarios
We may consider the following exceptions for Idaho borrowers on a case-by-case basis:
Guarantor credit scores between 660–679
Leasehold properties
Single-family homes between 500–699 SQFT
2–4 unit properties with any unit between 400–499 SQFT
Initial advance based on higher As Is value
Non-arms length deals
Financed interest
Limited tradelines with reserves
Rural property adjustments
Borrower and Guarantor Requirements
| Item | Requirements / Eligibility |
|---|---|
| Borrowing Entities | Must be LLC or Corporation (nonprofits not eligible) |
| Eligible Borrowers | US Citizens, Permanent Residents, or qualified Foreign Nationals |
| Foreign Nationals | Valid passport and visa; FICO required if guarantor |
| Credit Requirements | Minimum 680 FICO (660–679 considered with reserves) |
| Liquidity Requirements | Cash to close + 25% of rehab budget in liquid assets |
| Guaranty Structure | 51%+ of borrowing entity must personally guarantee (100% for cash-out) |
| Net Worth | Guarantor(s) must have 50% of loan amount in total net worth |
Liquidity Verification
To safely fund your Idaho investment, we verify that you or your guarantor(s) control enough liquidity:
Cash to close
25% of total rehab budget
Eligible liquid assets:
Personal/business bank accounts
Brokerage accounts
Retirement accounts (50% haircut applied)
We’ll review 2 recent statements. No need to transfer funds—just verify them.
Credit and Background Items
| Item | Policy |
|---|---|
| Tri-merge credit score | Use middle (if 3 scores) or lowest (if 2) |
| No mortgage tradelines | Require 6 months interest reserves |
| Fewer than 5 tradelines | Require 6 months interest reserves |
| Bankruptcy | Must be 4+ years from discharge |
| Foreclosure | Must be 4+ years from completion |
| Late mortgage payments | Requires LOE; may be ineligible |
| Past due balances or liens | Must be paid in full before funding |
| Pending lawsuits (civil/criminal) | May be ineligible or need LOE; subject to review |
| Financial or serious crimes | Not eligible |
Interest Reserves
Interest reserves may be held based on your credit score and financial profile:
| Interest Reserve | Scenario |
|---|---|
| 0 month | Lender discretion |
| 1 month | Guarantor FICO 700+ |
| 3 months | FICO 660–699 |
| 6 months | FICO 660–699 with background concerns |
Financed Interest Payments
To help you preserve working capital for your Idaho rehab:
Instead of monthly interest payments, we can roll accrued interest into your final payoff.
Example:
Loan: $100,000
Rate: 12%
Duration: 9 months
Accrued Interest: $9,000
Payoff: $109,000
This flexibility reduces pressure during active renovations.
Property Sourcing Guidelines
Whether you’re buying in Boise or Bonners Ferry, we require:
Purchase contract
Settlement statement
Track record
Operating agreement and entity docs
Scope of work
Appraisal and bank statements
Contractor agreement or Letter of Explanation if in new market
Permits or professional letters for condo conversions or major work
Assignment chains if wholesale deal
Payoff letter for refinances
Insurance Guidelines for Hard Money Loans
Proper insurance is required to protect your Idaho property investment. Builders Risk insurance is mandatory for active projects.
| Coverage | Limit / Requirement |
|---|---|
| Dwelling | Replacement Cost or Loan Amount (no coinsurance) |
| Liability | $1M per occurrence / $2M aggregate |
| Builders Risk | Included |
| Flood (if required) | $250,000 or loan amount, whichever is greater |
Policy must be:
A- VIII AM Best rated or higher
Special Form type
$1,000–$5,000 deductible
Include OfferMarket as mortgagee and additional insured
No exclusions for windstorm, hail, or named storms
30-day cancellation notice
💡 Tip: Install smoke detectors, locks, and cameras immediately after closing.
Frequently Asked Questions
What states does OfferMarket fund hard money loans?
Yes, OfferMarket funds hard money loans in Idaho — and in nearly every U.S. state.
| Eligible States |
|---|
| Alabama, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, 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 |
| Exceptions |
|---|
| Arizona, Minnesota, Nevada, North Dakota, Oregon, South Dakota, Utah, Vermont, Alaska |
* In states where NMLS licensure is required or where we do not directly lend, OfferMarket acts as a rate shopping service and refers your loan to a licensed capital partner.
Can I take out more than one hard money loan at the same time?
Yes. Many real estate investors in Idaho have multiple hard money loans active at once. We’ll evaluate your liquidity and project load to make sure it’s safe to add more debt.
Are hard money loans considered commercial?
Yes. These are business-purpose loans extended to your LLC or corporation. They are not consumer loans and are categorized as commercial financing.
What is the minimum loan amount?
| Criteria | Requirement |
|---|---|
| Minimum loan amount | $25,000 |
Which property types are eligible?
| Eligible | Ineligible |
|---|---|
| 1–4 unit residential (non-owner occupied) | Mixed-use, 5+ unit multifamily |
| Single-family residences | Mobile/manufactured homes |
| Townhomes, Warrantable Condos | Cabins, condotels, co-ops |
| Duplexes, Triplexes, Quadplexes | Commercial, luxury, or exotic homes |
| Planned Unit Developments | Unpaved road access, farms, ranches |
How do you calculate Loan-To-After-Repair Value (LTARV)?
| Metric | Formula |
|---|---|
| LTARV | (Initial Advance + Construction Holdback) ÷ After Repair Value |
What are the credit requirements?
| Criteria | Guideline |
|---|---|
| Minimum FICO score | 680 |
| Exceptions | 660–679 (requires interest reserves and review) |
Do I need previous real estate investing experience?
| Experience | Loan Eligibility |
|---|---|
| Not required | Eligible for Tier 1 terms |
| With experience | Greater leverage and better loan terms |
Does wholesaling count toward experience?
| Role in Project | Counts Toward Experience Tier? |
|---|---|
| Property wholesaler | ❌ No |
| Rehab project investor | ✅ Yes |
What documentation is required?
For Purchase Transactions
| Loan File Section | Documentation Required |
|---|---|
| Purchase Contract | Signed contract between buyer and seller |
| Credit Report | Soft tri-merge credit report for all guarantors |
| Background Report | Required for all guarantors |
| Track Record | Required for all members of the borrowing entity |
| ID Verification | Driver's license, passport, or Green Card |
| Borrowing Entity Docs | Articles of Organization, Operating Agreement, W-9, Certificate of Good Standing |
| Scope of Work | Detailed budget for planned rehab work |
| Appraisal Report | Ordered via OfferMarket and uploaded to loan file |
| Bank Statements | Two most recent statements from personal or business accounts |
| Letter of Explanation | If requested (e.g., for large deposits, late payments, background issues) |
For Refinance Transactions
| Loan File Section | Documentation Required |
|---|---|
| Settlement Statement | Executed HUD-1 or ALTA statement from original purchase |
| Credit Report | Soft tri-merge credit report for all guarantors |
| Background Report | Required for all guarantors |
| Track Record | Required for all members of the borrowing entity |
| ID Verification | Government-issued ID |
| Borrowing Entity Docs | Articles of Organization, Operating Agreement, W-9, Certificate of Good Standing |
| Sunk Costs | Receipts or statements showing funds spent on the property |
| Scope of Work | Detailed rehab budget for remaining or upcoming work |
| Appraisal Report | Ordered and uploaded by OfferMarket |
| Bank Statements | Two recent statements from personal or entity-controlled accounts |
| Letter of Explanation | If requested by underwriting team |
Are there special requirements for loans over $1M?
| Criteria | Requirement |
|---|---|
| Experience | Minimum Tier 3 (3+ similar verifiable projects) |
| Credit score | 680+ with at least 5 tradelines (24-month history) |
| Market liquidity | 3+ comps within 2 miles sold in past 6 months |
| Rural properties | ❌ Not eligible for $1M+ loans |
| Track Record | Required for each member of the borrowing entity |
Glossary of Key Terms
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit – a separate living space on the same lot as a primary single-family home. Common in Boise in-law suites or backyard cottages. |
| Arms-length | A transaction between unrelated parties where both are acting in their own self-interest and on equal footing. |
| Non-Arms-length | A transaction involving related parties (family, business partners) that may influence price or terms. |
| Initial Advance | The portion of the hard money loan used to fund the purchase price. Sent directly to the title company at closing. |
| Construction Holdback | The reserved portion of the loan designated for rehab work, reimbursed through draw requests. |
| Interest Reserves | Funds collected at closing and held in escrow to cover future interest payments on the loan. |
| LOE | Letter of Explanation – a written statement explaining irregularities in credit, income, or background checks. |
| LTC | Loan-to-Cost – the ratio of total loan amount to combined purchase price and rehab budget. |
| LTFC | Loan-to-Full-Cost – total loan amount divided by total project cost (purchase + rehab). |
| LTV | Loan-to-Value – loan amount divided by the property’s current "As Is" appraised value. |
| LTARV (ARLTV) | Loan-to-After-Repair Value – loan amount divided by the property’s appraised value after completion of planned renovations. |
| As Disbursed Interest | Interest is charged only on the actual funds that have been drawn (used) from the total loan. |
| Full Boat Interest | Also known as Dutch interest – interest is charged on the full loan amount (initial advance + full rehab budget), regardless of funds disbursed. |
| Lopsided Deal | When the rehab budget is greater than the purchase price or As Is value. Triggers LTFC caps and higher experience requirements. |
| GC Agreement | A signed agreement with a licensed General Contractor outlining the rehab scope, costs, and execution responsibilities. |
| DSCR | Debt Service Coverage Ratio – Net Rent ÷ PITIA (Principal, Interest, Taxes, Insurance, Association dues). Used to assess rental refinance feasibility. |
Instant Idaho Hard Money Loan Quote
OfferMarket Capital LLC is a top private lender for Idaho real estate investors. Whether you're flipping properties in Canyon County or scaling your BRRRR portfolio in Kootenai County, we’re ready to fund your vision.
Thousands of investors trust OfferMarket to grow their real estate business. Membership is free and includes:
💰 Private lending ☂️ Insurance rate shopping 🏚️ Off market properties 💡 Market insights
