Hard Money Loan Indiana

Last updated: May 9, 2025

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Our Indiana Hard Money Loan program is crafted to serve your goals — whether you're flipping properties in downtown Indy or building a rental portfolio in Gary. Use our streamlined financing to purchase, refinance, or renovate 1-4 unit residential investment properties.

Whether you’re aiming to flip your investment for a strong ROI, or refinance into a DSCR loan and hold as a rental, we’re here to help you execute confidently. Now let’s break down everything you need to know about OfferMarket’s Hard Money Loan program tailored for Indiana real estate investors.

What is a hard money loan?

A hard money loan is a short-term asset-based loan secured by real estate — in this case, non-owner-occupied 1-4 unit properties across Indiana. Investors commonly use these loans to acquire, improve, and resell or rent investment properties quickly and efficiently.

Within Indiana’s fast-paced real estate market, these are also referred to as “bridge loans” or “fix and flip loans.” These terms are frequently used by investors in markets like Indianapolis, Fort Wayne, and Lafayette who need rapid access to capital without traditional lending red tape.

Common Use Cases for Hard Money Loans in Indiana

Here’s how savvy Indiana investors use hard money loans:

• Buy & Rehab: Acquire and renovate a fixer-upper in South Bend or Hammond using a single loan — keeping your own capital in reserve.

• Refinance & Renovate: Already purchased a property in cash in Terre Haute or Muncie? Tap into that equity to fund the improvements.

• Replace an Expiring Loan: Replace an existing private loan on a partially completed project in Bloomington, and keep progress moving.

• Buy & Hold As-Is: Purchase a below-market deal in Elkhart and flip it without making any improvements — just sell for a markup.

• Refinance As-Is: Cash out of a property in Kokomo you bought cheap, and use the funds for your next acquisition.

• Hold After Rehab: You've finished rehab on a home in Anderson and need more time to sell or transition into a DSCR rental loan.

How It Works

Each Indiana hard money loan through OfferMarket is broken into two main parts:

• Initial Advance – Covers a percentage of your property’s purchase price. Sent to the title company at closing.

• Construction Holdback – Covers the renovation budget. Funds are disbursed to you as reimbursement draws.

This flexible structure means you can choose only what you need. If you're buying in Gary and already have funds set aside for repairs, you might skip the construction holdback. Alternatively, if you bought in cash and just need help with a $40,000 rehab in Bloomington, we’ve got you covered.

Indiana investors typically maximize leverage by using both components. But we cater to your specific strategy — whether you’re aiming for minimal cash out of pocket or already invested in the property and need rehab funding.

Your exit strategy can shift based on market changes. Maybe you started a BRRRR in Indianapolis but decide to flip after rehab when the resale market is hot. Or maybe your flip plan in Fort Wayne turns into a rental when demand surges. The good news? Our program flexes with your pivot, making it easy to switch from flip to rent or vice versa without penalty.

Who uses hard money loans?

In Indiana, real estate investors leverage hard money loans to stay competitive, close fast, and scale smart. These borrowers typically fall into two groups:

• Fix and Flip Investors – The classic “flippers” buying distressed homes in Indianapolis suburbs or overlooked corners of Fort Wayne, renovating them, and reselling for a profit.

• Rental Property Investors – BRRRR method specialists who purchase under-market homes in cities like South Bend or Lafayette, rehab, rent, refinance, and repeat.

At OfferMarket, we also see many Indiana investors using hybrid strategies. Some deals make sense to flip, others to hold — and it often depends on shifting markets, resale values, and rent demand. Flexibility is key, and we support that with loan options that don’t penalize pivots.

💡 Pro tip: Consider our Fix and Rent bundle — a seamless pairing of a hard money loan and a discounted DSCR refinance when you’re ready to hold and rent.

Indiana Hard Money Loan Program Guidelines

Here’s a detailed look at how our program works for Indiana investors:

Project Eligibility

Our number one priority is helping you minimize risk and build real estate wealth. That’s why less than 0.5% of all OfferMarket-funded loans have required foreclosure — one of the lowest default rates in the private lending space.

We see the highest risk in “heavy” or “extensive” rehabs taken on by investors with limited experience. These projects — especially in economic uncertainty — often involve delays, budget overruns, and market shifts that increase financial exposure.

Our role is to be your trusted partner in Indiana. We offer not only capital, but clear expectations, risk management, and experienced guidance. That starts with our rehab scope classification system — helping us align leverage with your project’s complexity and your track record.

Initial Advance

Your Indiana hard money loan’s initial advance is based on both your experience and your deal specifics. Here’s what we consider:

• Number of flips or rentals completed in the past 5 years.

• Number of active investment properties in your portfolio.

• Minimum FICO of 680 (preferred 720+).

• Realtor, contractor, or engineer status for leverage boosts.

• “As Is” valuation vs. purchase price — we lend based on the lower of the two.

• Projected ROI for flip exit (minimum 30% gross margin and $15,000 profit).

• Minimum DSCR of 1.1 for refinance exit strategies.

If your investment is located in a rural Indiana market, such as Warsaw or Jasper, we may limit the initial advance and require at least Tier 3 experience.

Experience-based Tiers

Initial Advance by Tier

*Tier 1 borrowers with strong credit and liquidity may qualify for 85%.

Adjustments to Initial Advance

Rehab Scope Classification

We classify every rehab in Indiana into one of four categories. This helps us assess project complexity and align it with your experience level:

This classification is particularly useful for properties in older Indiana neighborhoods like those in Richmond, Logansport, or Anderson — where the rehab work can vary dramatically from cosmetic updates to full structural overhauls.

Rehab Scope Eligibility

Your eligibility for each rehab category depends on your experience tier. We want to empower you to grow while also ensuring that your projects in Indiana stay manageable and profitable.

In markets like Indianapolis or Gary, this tiered approach helps us back the right projects with the right support — whether you're patching drywall or doing a full back-to-the-studs renovation.

LTARV Limits

Loan-To-After-Repair Value (LTARV) refers to the ratio of your total loan to the post-rehab appraised value of the property. Your LTARV cap is based on both experience and rehab scope.

This means even extensive rehabs in Indiana cities like Michigan City or New Albany can qualify for funding — as long as your track record supports it.

LTFC Limits

Loan-To-Full-Cost (LTFC) applies when your rehab budget exceeds your purchase price. These situations carry higher risk and require more borrower equity.

For example, if you’re rehabbing a $50,000 home in Marion with a $60,000 budget, your LTFC must meet the thresholds above to be eligible for full funding.

Example: No Experience

• Purchase Price: $100,000

• Location: Fort Wayne, IN

• Tier: 1 (0 similar verifiable experience)

• Credit Score: 695

• Rehab Budget: $24,000

• ARV: $150,000

Loan Terms:

• Initial Advance: $75,000 (75%)

• Construction Holdback: $24,000

• Total Loan: $99,000

• LTARV: 66%

• LTFC: 79.8%

• Interest Accrual: Full Boat

Example: No Experience, Excellent Credit

• Location: Terre Haute, IN

• Credit Score: 750

Loan Terms:

• Initial Advance: $80,000 (80%)

• Construction Holdback: $24,000

• Total Loan: $104,000

• LTARV: 69.33%

• LTFC: 83.9%

• Interest Accrual: As Disbursed

Example: Experienced Investor

• Tier: 4 (5 similar verifiable projects)

• Credit Score: 750

• Location: Indianapolis, IN

Loan Terms:

• Initial Advance: $90,000 (90%)

• Construction Holdback: $20,000

• Total Loan: $110,000

• LTARV: 73.33%

• LTFC: 91.67%

• Interest Accrual: As Disbursed

Refinancing Using As Is Value (vs. Cost Basis)

In Indiana markets where properties are appreciating or well-seasoned, OfferMarket may allow refinancing based on the property’s As Is value, rather than your original Cost Basis. This option is ideal if you’ve owned a property in Bloomington or Lafayette for several years, and its value has appreciated without additional capex.

To qualify:

• Property must be in C4 or better condition

• Seasoned for 3+ years

• Clean payoff statement (no default or late fees)

• Guarantor credit score: 680+

• Experience Tier: 3 or higher

• Strong comps proving current value

We’ve seen investors in neighborhoods like Broad Ripple or Old Northside use this structure to tap into significant equity for further acquisitions or upgrades.

Wholesale & Price Run-Ups

For Indiana wholesalers, we can include assignment fees or double-close spreads in the loan basis — capped at 20% of the A-B contract price.

Example:

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

• B-C Contract (your buyer): $125,000

• As Is Value: $125,000

• Financeable Basis: Up to $120,000

Note: Full transparency and documentation are required, including:

• Chain of contracts (A-B, B-C)

• Wholesaler’s operating agreement

• No MLS listings

• Arm’s-length transaction

Construction Holdback & Draw Process

Construction holdbacks are disbursed as draws once progress is verified. Whether you’re rehabbing a duplex in Muncie or a single-family rental in Noblesville, our streamlined system gets you reimbursed quickly.

We make it easy to keep your Indiana project on schedule without draining your own cash reserves.

Appraisal and Valuation in Indiana

Every OfferMarket Indiana hard money loan requires a valuation. Depending on property location, condition, and borrower profile, we use one of the following:

In-House Valuation (for Experienced Borrowers)

Exterior Appraisal (for Special Scenarios)

Used for:

• REO sales in places like Anderson or Elkhart

• Auction properties

• Sheriff’s sales

• Bankruptcy court transactions

Note: Appraisal must be dated within 120 days of settlement or be recertified.

Interior Appraisal (Default for Most Deals)

If your Indiana property doesn’t meet in-house or exterior appraisal criteria, you’ll need a full interior appraisal:

Stabilized Hard Money Loan Scenario

If you're working with a property in Indiana that’s already in solid condition — no deferred maintenance, ready to rent or sell — you may qualify for a Stabilized Hard Money Loan. These are appraised As Is, and we can lend up to 75% of that value.

This works well for Indiana neighborhoods with strong comps and rental demand — like parts of Greenwood, Carmel, or West Lafayette — where you’re purchasing a turnkey property at a discount.

Key Loan Details

Extension Terms and Guidelines

Hard money loans are short-term by nature — most are paid off well before maturity. However, we understand that delays can occur. If your project in Indiana hits unexpected issues (e.g. permit delays in Bloomington or contractor issues in Evansville), here’s how extensions work:

Extension Fees:

To qualify for an extension, your builder’s risk insurance must be active for the full new term.

Ineligible Property Types

While we cover a wide range of Indiana real estate, the following property types are not eligible:

• Mixed-use buildings

• 5+ unit multifamily

• Condotels or co-ops

• Mobile or manufactured homes

• Commercial real estate

• Cabins or log homes

• Farms, ranches, orchards

• Vacation or seasonal rentals

• Luxury or exotic builds

• Unpaved or inaccessible roads

• Properties with oil/gas leases

If you're unsure about your property in Indiana, our team will quickly review and provide clarity.

Borrower and Guarantor Requirements

Whether you're investing in Indianapolis, Fort Wayne, or small towns like Bedford or Peru, here’s what you need to know to qualify for our Indiana hard money loan program:

Liquidity Verification

You must demonstrate sufficient liquidity to handle the project. This is especially crucial in Indiana’s smaller markets where appraisals and resales may take longer.

Minimum requirement:
Estimated cash to close + 25% of the rehab budget.

Eligible liquid assets include:

• Personal or business checking/savings accounts

• Brokerage accounts (personal or entity-held)

• Retirement accounts (discounted 50% due to limited access)

Verification:

• Two most recent statements

• No seasoning requirement

• LOE for large recent deposits

Credit and Background Items

Here’s how OfferMarket evaluates your credit and background to determine eligibility and reserve requirements:

Interest Reserves

Interest reserves may be collected at closing depending on credit profile.

Financed Interest Payments

In Indiana markets where managing cash flow is critical, financed interest payments can be a powerful option. You won’t pay interest monthly — it’s added to your payoff statement.

Example:

• Loan: $100,000

• Interest Rate: 12%

• Duration: 9 months

• Accrued Interest: $9,000

• Payoff Statement: $109,000

This structure works well for full renovations in South Bend, or when holding until tenant placement in markets like Columbus or Anderson.

Property Sourcing Guidelines

When you're sourcing deals across Indiana — whether distressed properties in Muncie, auctions in Kokomo, or wholesale flips in Gary — OfferMarket expects clear documentation to ensure transparency and risk mitigation.

Key Points:

• New Market Entry: If you're investing in an Indiana city for the first time, you’ll need to submit a General Contractor agreement or a Letter of Explanation stating why a GC is not needed.

• Price Run-Ups / Wholesale Deals: Transactions with rising contract prices (e.g., wholesaler markup) require documentation and underwriting review.

• Heavy Renovation or Conversion Projects: If you're working on major structural rehabs in cities like Terre Haute or South Bend, engineer letters or permits may be required.

Required Submissions:

• Purchase contracts

• Settlement statements

• Payoff letters (for refis)

• Scope of work and budget

• Track record of verifiable projects

• Business formation documents (e.g., LLC articles, operating agreement)

Insurance Guidelines for Hard Money Loans

Insuring your Indiana investment is critical — especially when working on distressed or vacant properties in areas like Fort Wayne, Michigan City, or Hammond. OfferMarket requires specialized insurance coverage tailored for real estate investors.

Coverages and Limits

Coverage Details

💡 Indiana Compliance Tip: As soon as you take ownership, install smoke detectors, new locks, and security cameras. These steps ensure policy compliance and reduce claim denials in the event of theft or vandalism.

Frequently Asked Questions

What states does OfferMarket fund hard money loans?

OfferMarket funds hard money loans in Indiana and most U.S. states, including:

• Illinois

• Ohio

• Kentucky

• Michigan

• Pennsylvania

• Florida

• Texas

• Georgia

• North Carolina

• New York

Note: In states like Minnesota, Oregon, Utah, and Vermont — where an NMLS license is required — OfferMarket operates as a rate shopping service. That means your Indiana loan is directly originated by OfferMarket Capital LLC, but in restricted states, we may refer your loan to a licensed local capital provider.

Can I do more than one hard money loan at a time?

Yes. It’s common for Indiana investors to have multiple hard money loans active at once. Many of our clients operate several rehabs or rentals across cities like Indianapolis, Fort Wayne, and Evansville.

That said, we prioritize responsible scaling. If your liquidity, pace, or experience suggests you're taking on too much risk, we’ll proactively raise concerns and work with you to ensure safe project execution.

Are hard money loans commercial?

Yes. Hard money loans are considered business-purpose commercial loans because they’re made to your LLC or Corporation, not to you personally. These loans are strictly for investment use, such as fix-and-flip or BRRRR strategies, and cannot be used for primary residences.

What is the minimum loan amount?

The minimum loan amount is $25,000 — suitable for affordable markets in Indiana where purchase prices and rehab budgets tend to be lower.

Which property types are eligible?

Eligible properties in Indiana include:

• Non-owner occupied single-family homes

• 2–4 unit multifamily properties

• Townhomes, warrantable condos, and PUDs (Planned Unit Developments)

Ineligible:

• Mixed-use buildings

• 5+ unit multifamily

• Manufactured homes

• Co-ops, condotels, log cabins

• Commercial real estate (retail, industrial, etc.)

• Seasonal rentals, luxury or exotic properties

• Properties on dirt or unpaved roads

• Anything with oil/gas leases or active farmland

How is Loan-to-Value (LTV) calculated?

We use a few variations:

• LTV (Loan-to-Value) = Loan ÷ “As Is” property value

• LTC (Loan-to-Cost) = Loan ÷ (Purchase Price + Rehab Budget)

• LTARV (Loan-to-After-Repair Value) = Loan ÷ Post-renovation value

For Indiana refinances, we lend against the lower of As Is value or original cost basis, unless your property qualifies for our As Is Value Refi Program (see earlier section).

What are the credit requirements?

• Minimum FICO 680

• Exceptions allowed for 660–679, typically with stronger liquidity or experience

• We evaluate the guarantors’ credit — not all LLC members, only those personally guaranteeing the loan

What are the experience requirements?

Experience is not required. However, with more verifiable projects:

• You gain access to higher leverage (higher initial advance)

• You qualify for heavier rehab scopes

• You may unlock better terms, including in-house valuations

We verify experience using your Track Record and settlement documentation. If you’ve flipped or rehabbed properties in Indiana before, be sure to submit those details — even if they weren’t through OfferMarket.

Does being a wholesaler count as experience?

No. If you were only a wholesaler on a transaction — meaning you didn’t fund or rehab the property — that deal does not count toward your experience tier.

What documentation is required?

Our Loan File system is designed to make it easy for Indiana real estate investors to upload and manage documents for efficient loan approval. Once submitted, many documents can be reused for future deals — whether you're flipping in Indianapolis or refinancing a BRRRR in Fort Wayne.

Purchase Transaction Requirements

Refinance Transaction Requirements

Are there special requirements for loans over $1M?

Yes. If you're applying for a high-balance Indiana hard money loan over $1 million — say, for a large portfolio refinance in Indianapolis or a multi-site flip in Gary — you’ll need to meet stricter guidelines:

Glossary of Key Terms

Instant Hard Money Loan Quote

OfferMarket Capital is Indiana’s trusted private lender for real estate investors — with a streamlined hard money loan program built for speed, flexibility, and investor success.

Whether you're flipping houses in Indianapolis, buying rentals in Lafayette, or scaling your portfolio in South Bend, we’re here to help you close confidently and grow faster.

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