Hard Money Loan Iowa
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Last updated: May 9, 2025
At OfferMarket, we’re here to help Iowans grow their wealth through real estate. Whether you're flipping homes in Des Moines or acquiring rental units in Cedar Rapids, our all-in-one platform is built to make your journey seamless:
💰 Private lending
☂️ Competitive insurance quotes
🏚️ Off-market property access
Our Iowa Hard Money Loan program delivers swift, reliable funding solutions to acquire, refinance, or upgrade 1-4 unit residential investment properties throughout the Hawkeye State.
Whether you're buying to flip or aiming to hold and refinance into a DSCR loan, we’re excited to earn your business and play a part in your success story.
Let’s take a deep dive into OfferMarket’s Iowa Hard Money Loan Program.
What is a hard money loan?
A hard money loan is a short-term real estate loan secured by a tangible asset—typically a 1-4 unit investment property. It's designed to enable you to purchase, improve, and either sell or hold the property. Investors in Iowa use these loans to flip properties or to build long-term rental portfolios.
Often called “bridge loans” or “fix and flip loans,” these financing tools are interchangeable among Iowa real estate investors and private lenders alike.
Iowa hard money loan scenarios
Investors across Iowa use hard money loans for a wide range of purposes:
Buying and rehabbing a distressed property—ideal when you need leverage without draining your own reserves.
Cash-out refinancing after buying a property outright—perfect for fast closings on off-market deals that now need rehab funds.
Refinancing an existing loan to complete renovations—especially useful when your current lender wants out before your project is finished.
Acquiring properties with no renovation plans—commonly used when buying below market value to resell in as-is condition.
Refinancing properties purchased for cash without plans to renovate—this frees up capital for your next deal.
Paying off an old loan without further work on the property—whether you're planning to sell soon or need extra time before refinancing.
How it works
Iowa hard money loans come in two flexible components:
- Initial Advance – Covers part of the purchase price and is wired directly to your title company during settlement.
- Construction Holdback – Funds for rehab, disbursed to you in draws as work is completed.
You can tailor your loan to your project. For instance:
Need both purchase and rehab funds? Use both components.
Just need a rehab budget for a property you already own? Go with a construction holdback only.
Don’t need rehab funds? Opt solely for the initial advance.
This flexibility allows Iowa investors to strategically manage cash and maximize leverage. Whether you're planning to flip or BRRRR, your financing should support your strategy, not restrict it.
In Iowa’s dynamic housing market, having a flexible exit plan is essential. You might start out planning a BRRRR—buy, rehab, rent, refinance, repeat—but shift to a flip if local rental demand isn’t strong. Alternatively, if your original plan was to flip but the market softens, you can rent it out and refinance into a DSCR loan with minimal penalties.
Our most successful Iowa investors focus on deals with dual exit potential to mitigate risk and seize opportunity.
Who benefits from Iowa hard money loans?
Fix and flip pros looking to capitalize on distressed properties in towns like Davenport or Council Bluffs.
Rental investors executing the BRRRR method in high-demand rental markets like Iowa City.
We also offer a bundled solution—our Fix and Rent package—which pairs our hard money loan with a discounted DSCR refinance loan.
Hybrid strategies are increasingly common among Iowa investors. Many of our clients blend both rental and flip strategies depending on the property and market timing. This adaptability often leads to stronger returns and more resilient portfolios.
Iowa 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 entity must guarantee) |
| Exit strategy: Sale | minimum 30% ROI |
| Exit strategy: Refinance | minimum 1.1 DSCR after repairs |
| Valuation | Appraisal or in-house valuation |
| SqFt (minimum) | SFR: 700+ / 2–4 unit: 500+ / Condo: 500+ |
| Acreage (maximum) | 5 |
| Interest accrual | Under $100K: full boat / $100K+: as disbursed |
| Advanced draws | At lender discretion |
| Down payment (minimum) | $10,000 |
Project Eligibility In Iowa
At OfferMarket, we’re not just providing capital — we’re invested in your long-term success as a real estate investor in Iowa. That’s why we’ve kept our default rate under 0.5%, among the best in the business.
We work closely with first-time and seasoned investors across Iowa, from Ames to Sioux City, and we’re committed to helping you steer clear of risky undertakings. Projects with high complexity — such as extensive structural rehabs or builds in economically uncertain regions — can strain timelines and budgets even for experienced investors.
That’s why we use a structured rehab classification system to determine eligibility based on your level of experience and the complexity of your rehab.
Initial Advance
Your Initial Advance is tailored to your investing background and the specifics of the deal. Here’s what we look at:
Number of properties you’ve owned in the past 24 months
Quantity of verified similar rehabs completed in the last 5 years
Minimum credit score of 680 (720+ preferred for better leverage)
Professionals such as Realtors, General Contractors, and Engineers in Iowa can benefit from higher leverage based on their credentials.
When determining your Initial Advance:
If you’re paying more than the appraised “As Is” value, we’ll lend based on that appraised value, not the purchase price.
If your exit is a flip, your projected margin should be at least 30% with a $15,000 profit minimum.
If your strategy is to refinance into a rental loan, your DSCR post-renovation should be 1.1 or better.
For rural properties in Iowa — like those outside the Cedar Valley metro — we limit advance percentages and require 3+ prior projects for eligibility.
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 | Advance (% of Purchase Price) |
|---|---|
| 1 | 80% (*85% possible with strong profile) |
| 2 | 85% |
| 3 | 85% |
| 4 | 90% |
| 5 | 90% |
Adjustments to Initial Advance
| Scenario | Adjustment |
|---|---|
| Credit score under 720 | -5% |
| Full gut rehab | -5% |
| New to Iowa market | -5% |
| Licensed Realtor (IA) | up to +5% |
| Licensed General Contractor | up to +10% |
| Licensed Professional Engineer | up to +10% |
| Rural Iowa property | -20% (3+ experience) |
Rehab Scope Classification
| Scope | Definition |
|---|---|
| Light | Rehab < 25% of purchase price |
| Moderate | Rehab = 25% to 49.99% of purchase price |
| Heavy | Rehab = 50% to 99.99% of purchase price |
| Extensive | Rehab ≥ 100% (e.g. additions, expansions, or “lopsided” deals) |
A “lopsided deal” occurs when the property’s rehab budget exceeds its As Is value — common in small towns or undervalued regions of Iowa.
Rehab Scope Eligibility
| Tier | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Experience | 0 | 1-2 | 3-4 | 5-9 | 10+ |
| Light | Eligible | Eligible | Eligible | Eligible | Eligible |
| Moderate | Ineligible | Eligible | Eligible | Eligible | Eligible |
| Heavy | Ineligible | Eligible | Eligible | Eligible | Eligible |
LTARV Limits
Your loan-to-after-repair value (LTARV) determines how much leverage you can access. These limits depend on both your experience tier and the rehab intensity. The following guidelines apply to Iowa real estate projects:
| Tier | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Experience | 0 | 1–2 | 3–4 | 5–9 | 10+ |
| Light | 70% | 70% | 75% | 75% | 75% |
| Moderate | — | 70% | 75% | 75% | 75% |
| Heavy | — | 70% | 75% | 75% | 75% |
| Extensive | — | — | 70% | 70% | 70% |
LTFC Limits
Loan-to-full-cost (LTFC) ratios apply to more aggressive Iowa projects—particularly “extensive” rehabs where your renovation budget exceeds your purchase price. Here’s how we cap LTFC to keep both you and us protected.
| Tier | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Light | N/A | N/A | N/A | N/A | N/A |
| Moderate | — | N/A | N/A | N/A | N/A |
| Heavy | — | N/A | N/A | N/A | N/A |
| Extensive | — | — | 85% | 90% | 90% |
This means a borrower in Iowa with 3–4 verified projects can get up to 85% LTFC on heavy rehabs in areas like Waterloo or Fort Dodge, as long as risk thresholds are met.
Iowa Investment Case Studies
Let’s look at how these numbers play out in real scenarios across Iowa:
Example: New Iowa Investor
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 (under $100K) |
Example: No Experience, Strong Credit
- Credit Score: 750
| 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: Experienced Investor
Experience Tier: 4 (5+ projects)
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 Based On As Is Value in Iowa
If your property in Iowa has been held for several years, is in livable condition (C4 or better), and is worth more now than when you acquired it, we may base the loan on the current market value (“As Is”) rather than the original cost.
To qualify:
The home must be habitable
Ownership must be seasoned for 3+ years
Credit score must be 680+
Experience Tier must be 3 or higher
Prior lender’s payoff statement must be clean (no late fees or default interest)
You must present a solid case for current valuation (e.g., local comps from Davenport or West Des Moines)
If the Iowa property was previously rented and now requires rehab to be resold, this scenario may apply.
Wholesaler Transaction Guidelines In Iowa
For Iowa real estate investors involved in wholesale deals—common in places like Council Bluffs or small-town auctions—we allow financing of assignment fees or double-close markups, but with clear parameters.
Let’s say:
A–B Contract (owner to wholesaler): $100,000
B–C Contract (wholesaler to you): $125,000
As Is Valuation: $125,000
You can be financed based on $120,000 (20% markup cap from the original purchase price). Any markup beyond 20% must be covered out of pocket.
To qualify:
The transaction must be arm’s length
We need a full chain of contracts (A–B and B–C)
Wholesaler must provide an operating agreement
The property cannot be listed on the MLS (no markup financing in that case)
No finders or referral fees can be included
Construction Holdback
Construction funds for Iowa properties are distributed via a draw process. If you're rehabbing a home in Cedar Falls, for example, you'll be reimbursed as progress is verified against your scope of work.
If you have sufficient capital and want to skip the holdback, you can opt out—but for those who use it, here’s how it works:
| Draw Processing Guideline | Requirement |
|---|---|
| Minimum draw amount | None |
| Maximum draw amount | 100% of remaining holdback |
| Minimum number of draws | 0 |
| Maximum number of draws | No limit |
| Delivered (but not installed) materials | Up to 50% reimbursable w/ proof |
| Draw inspection | App-based (self-guided) |
| Draw turnaround | 0 to 2 business days |
| Draw fee | $270 |
| Wire fee | $30 |
For Iowa deals $100,000 and above, interest is only charged on drawn funds—keeping your costs low during renovations.
Appraisal And In-House Valuation
Every Iowa hard money loan requires a valuation. Depending on the specifics, we’ll either use:
An interior or exterior 3rd-party appraisal
Our in-house valuation, if you meet specific thresholds
In-House Valuation Eligibility
| Criteria | Requirement |
|---|---|
| Property type | SFR, Duplex, Triplex, Quad |
| Tier | 4 or higher |
| Credit score | 720+ |
| Property location | Not rural |
| New to Iowa market | No |
| LTARV | Max 70% |
We reserve the right to order a full appraisal even if these criteria are met.
Exterior Appraisal Use Cases
Exterior-only appraisals are permitted in Iowa for properties purchased via:
REO sales
Sheriff’s auctions
Foreclosures
Bankruptcy sales
Online auctions
The appraisal must be dated within 120 days of settlement (or recertified if between 120–179 days).
Interior Appraisal Required If
Your Iowa transaction doesn’t fall under the above, we’ll require a full interior report:
| Property Type | 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) |
We’ll handle appraisal orders and you’ll cover the invoice. Your loan won’t move forward until this is paid.
Appraisal Transfer
Already ordered an appraisal? We can accept it if:
It was ordered via an approved AMC
It’s under 180 days old at closing
We receive a transfer letter stating compliance with AIR guidelines
You provide the PDF, XML, and invoice documentation
Stabilized Hard Money Loan (C4+ Iowa Properties)
If your property is “stabilized”—meaning it’s in livable condition with no deferred maintenance—we’ll finance it up to 75% of its As Is value.
| Criteria | Guideline |
|---|---|
| LTV (max) | Tier 1–2: 70%, Tier 3–5: 75% |
| LTFC (max) | Tier 1–2: 80%, Tier 3–5: 90% |
| Appraisal condition rating | C1, C2, C3, or C4 |
| Loan term (max) | 12 months |
This option is ideal for Iowa investors who own rental-ready homes and want quick liquidity without waiting for extensive renovations to finish.
Key Loan Details for Iowa Investors
| Criteria | Details |
|---|---|
| Loan Amount | $25,000 to $2,000,000 |
| Units per Property | 1 – 4 |
| Eligible Property Types | Non-owner occupied residential units (1-4), townhomes, condos, PUDs |
| Minimum Property Size | SFR: ≥700 sqft / 2–4 unit & condos: ≥500 sqft per unit |
| Maximum 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 < $100K) |
| Loan Term | 12 months standard; 18–24 months available |
| Extensions | Up to 50% of original loan term |
| Origination Fee | 1.5 to 2 points (minimum $2,000) |
| Prepayment Penalty | None |
| Occupancy | Non-owner occupied only |
| Transaction Types | Arms-length purchase or refinance |
| Eligible Locations | All U.S. states except AK, AZ, HI, MN, ND, NV, OR, SD, UT, VT |
| Amortization | Interest-only with balloon payment |
| Interest Accrual | Loans under $100K: full loan amount; $100K+: as disbursed |
Loan Extensions In Iowa
While our standard term fits most Iowa projects, delays happen. We offer extensions, though they do come with fees and additional interest. Extensions should be planned cautiously to avoid unnecessary costs or risk.
Common Reasons to Extend (and Avoid)
Relying on underqualified contractors
Choosing high-scope rehabs beyond experience level
Buying properties needing permits in cities like Des Moines with slow turnarounds
Tenant-occupied units needing eviction or lease expiration
Not having a backup exit strategy (flip vs refinance)
Extension Limits
| Original Term | Max Extension |
|---|---|
| 12 months | 6 months |
| 18 months | 9 months |
| 24 months | 12 months |
Extension Fees
| Term | Fee |
|---|---|
| 3 months (1st) | 1% of total loan amount |
| 3 months (2nd) | 1.5% of total loan amount |
| 6 months (1st) | 2.5% of total loan amount |
Important: Builder’s Risk insurance must remain active during the extension period.
Ineligible Property Types in Iowa
OfferMarket does not fund the following property types in Iowa:
Mixed-use buildings
Properties with 5+ residential units
Condotels and co-ops
Mobile or manufactured homes
Commercial-use properties
Cabins, log structures, luxury or exotic homes
Properties with gas/oil leases
Operating farms, ranches, or orchards
Vacation or seasonal rentals
Properties accessed via dirt or unpaved roads
Borrower & Guarantor Requirements
| Item | Requirement |
|---|---|
| Borrowing Entity | LLC or Corporation (nonprofits are not eligible) |
| Eligible Borrowers | U.S. Citizens, Permanent Residents, or eligible Foreign Nationals |
| Foreign Nationals | Passport + U.S. Visa (no student/tourist-only) + U.S. FICO required |
| Credit Score | Minimum 680 (exceptions considered for 660–679 with reserves) |
| Tri-Merge Credit Report | Required and must be <120 days old |
| Guarantor Net Worth | Must equal at least 50% of total loan amount |
| Personal Guaranty Structure | 51% of entity for purchase loans / 100% for cash-out refinances |
| Recourse | Full recourse (no non-recourse loans) |
Liquidity Requirements
To minimize risk, we verify that guarantors have sufficient liquidity to close and complete the rehab:
Required Liquidity = Estimated cash to close + 25% of rehab budget.
Acceptable Assets:
Personal or business checking/savings accounts
Business accounts owned by other entities (with verification)
Brokerage accounts
Retirement accounts (valued at 50% due to restrictions)
No need to move your funds—just provide two recent statements per account. Large deposits may need a Letter of Explanation (LOE).
Credit & Background Requirements
| Condition | Requirement |
|---|---|
| Tri-Merge Scores | If 3, use middle score; if 2, use lower |
| No mortgage tradelines | 6 months interest reserves required |
| Fewer than 5 tradelines | 6 months interest reserves required |
| Bankruptcy (past 4 years) | Not eligible |
| Bankruptcy (4–7 years ago) | 3 months reserves required |
| Foreclosure (past 4 years) | Not eligible |
| Foreclosure (4–7 years ago) | 3 months reserves required |
| Late mortgage payments (12 mo) | LOE required; subject to review |
| Past due tradelines | Must be resolved before closing |
| Judgments, liens | Must be paid in full before funding |
| Civil litigation | LOE required; reviewed case-by-case |
| Criminal background (financial/major) | Not eligible |
| Repeat offenses or minor cases | LOE required; subject to discretion |
Interest Reserve Guidelines
| Scenario | Reserve Requirement |
|---|---|
| No red flags, strong FICO | 0 months |
| FICO 700+ | 1 month |
| FICO 660–699 | 3 months |
| FICO 660–699 with credit issues | 6 months |
Financed Interest Payments Option
If you're renovating in places like Sioux City or Ottumwa and want to preserve liquidity, you may qualify to roll interest into your final payoff.
Example:
Loan amount: $100,000
Rate: 12%
Term: 9 months
Interest: $9,000
Final payoff: $109,000
Property Sourcing Guidelines
To ensure safe and transparent transactions across Iowa's diverse markets, we apply the following guidelines when reviewing deals:
New market projects require either a general contractor agreement or a Letter of Explanation (LOE) if you’re managing the project solo.
Wholesale and non-arms-length transactions must include assignment contracts, full document chain, and justification for any price escalations.
Condos, major rehabs, and structural projects may require architectural plans, engineering letters, or permits.
All loan applications must include signed purchase contracts, settlement statements (if applicable), entity formation docs, and experience documentation.
Insurance Guidelines for Hard Money Loans
Proper insurance coverage is essential for every hard money project in Iowa. We require that you secure Builder’s Risk Insurance — also known as fix and flip insurance — which covers both the structure and liability during the loan term.
Required Coverages
| Coverage Type | Minimum Limit |
|---|---|
| Dwelling | Replacement Cost or Loan Amount (with zero coinsurance) |
| Liability | $1,000,000 per occurrence / $2,000,000 aggregate annually |
| Builder’s Risk | Must be included |
| Flood Insurance | Required only if the property is in a FEMA Special Flood Hazard Area |
Additional Insurance Requirements
| Item | Requirement |
|---|---|
| AM Best Rating | A- VIII or better |
| Policy Type | Special Form |
| Deductible | Between $1,000 and $5,000 |
| Lender's Designation | OfferMarket must be listed as both Mortgagee and Additional Insured |
| Exclusions | No exclusions for hail, windstorm, or named storms |
| Cancellation Clause | 30-day notice required to lender |
💡 Pro Tip for Iowa Investors: As soon as you take possession of a property, be sure to install smoke detectors, locks, and security cameras. These actions help you comply with your insurance policy and reduce the risk of claim denials.
Frequently Asked Questions
What states does OfferMarket fund hard money loans?
OfferMarket provides hard money loans in most U.S. states, including Iowa. In states like Arizona, Minnesota, Nevada, and others where licensing or local restrictions apply, we operate as a rate shopping platform and refer your loan to a licensed capital provider.
Can I do more than one hard money loan at a time?
Yes, you can. Many Iowa investors have multiple active loans through OfferMarket. Our role is to help you manage risk, so if your liquidity or project volume exceeds your capacity, we’ll advise accordingly to keep your portfolio safe.
Are hard money loans commercial?
Yes. Since hard money loans are issued to a business entity and used for investment properties, they are classified as business-purpose commercial loans—even when used for residential real estate.
What is the minimum loan amount?
$25,000 is the minimum amount for a hard money loan with OfferMarket.
Which property types are eligible?
We lend on non-owner occupied 1–4 unit residential properties in Iowa. This includes single-family homes, townhomes, duplexes, triplexes, fourplexes, and warrantable condos. Mixed-use, mobile homes, 5+ unit buildings, and commercial properties are not eligible in this program.
How do you calculate Loan-to-Value (LTV)?
We base LTV on the lower of the purchase price or As Is appraised value. For full project leverage, we calculate LTARV (Loan-to-After-Repair Value) by dividing your total loan (initial advance + rehab holdback) by the projected ARV from your appraisal or in-house valuation.
What are the credit requirements?
A minimum FICO score of 680 is required for eligibility. In some cases, scores from 660–679 may be accepted with added reserves. We review only the credit of members of the borrowing entity who are providing personal guarantees.
What are the experience requirements?
No experience is required to qualify. However, verifiable past rehab projects help you secure better leverage and qualify for more complex deals. Our Experience Tier system rewards borrowers who have completed similar renovations.
Does being a wholesaler count towards experience?
No. While wholesaling is valuable experience, it does not qualify toward our experience tier system unless you directly managed and funded the rehab project.
What documentation is required?
Our system simplifies the process by guiding you through uploads. Documents are securely stored to speed up repeat loan applications.
Purchase Transaction Requirements
| Document | Details |
|---|---|
| Purchase Contract | Fully executed agreement between buyer and seller. |
| Credit Report | Soft tri-merge credit pull for each guarantor. |
| Background Report | Required for all guarantors. |
| Track Record | Details of each member’s past real estate investment experience. |
| ID Verification | Government-issued photo ID (driver's license, passport, green card). |
| Borrowing Entity | Articles of organization/incorporation, Operating Agreement/Bylaws, W-9, Certificate of Good Standing. |
| Scope of Work | Rehab budget used to calculate ARV and draw disbursement. |
| Appraisal Report | Ordered through OfferMarket after invoice is paid. Uploaded automatically to loan file. |
| Bank Statements | 2 most recent statements from each guarantor (personal or business). |
| Letter of Explanation | Required if requested—for example, for large deposits or flagged credit issues. |
Refinance Transaction Requirements
| Document | Details |
|---|---|
| Settlement Statement | Final statement from prior purchase, signed by buyer and settlement agent. |
| Credit Report | Soft tri-merge credit pull for each guarantor. |
| Background Report | Required for all guarantors. |
| Track Record | Details of past completed rehab projects. |
| ID Verification | Valid U.S. ID (passport, driver’s license, or green card). |
| Borrowing Entity | Articles of organization/incorporation, Operating Agreement/Bylaws, W-9, Certificate of Good Standing. |
| Sunk Costs | Itemized list of all funds already invested in the project. |
| Scope of Work | Full budget detailing repairs for ARV calculation. |
| Appraisal Report | Ordered via OfferMarket after invoice is paid and uploaded to your loan file. |
| Bank Statements | 2 most recent per guarantor (personal, business, or entity-owned accounts). |
| Letter of Explanation | Submitted upon underwriter request (i.e. for credit flags or account anomalies). |
Are there special requirements for loans over $1M?
Loans over $1M (up to our $2M maximum) are subjected to the following adjusted guidelines:
| Criteria | Explanation |
|---|---|
| Experience | Minimum experience of 3, similar or greater price point strongly preferred |
| Market liquidity | Minimum of 3 comps within a 2 mile radius sold on the MLS in the last 6 months |
| Credit score | Minimum 680 with a minimum of 5 trade lines with 24 month history |
| Rural designation | Not eligible if designated rural by CFPB and USDA or appraisal report |
| Track Record | Required for each member of the borrowing entity |
Glossary of Key Terms
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit—secondary housing on a single-family lot |
| Arms-length | Buyer and seller act independently, with no prior relationship |
| Non-arms-length | Buyer and seller have a personal or business connection |
| Initial Advance | The portion of the loan used for the purchase price, paid at settlement |
| Construction Holdback | Rehab funds reimbursed in draws based on completed work |
| Interest Reserves | Interest set aside at closing to cover monthly interest temporarily |
| LTC | Loan-to-Cost ratio (loan / [purchase + rehab]) |
| LTFC | Loan-to-Full-Cost (applies to extensive rehabs) |
| LTV | Loan-to-Value (loan / As Is value) |
| LTARV | Loan-to-After-Repair-Value (loan / ARV) |
| Full Boat Interest | Interest charged on total approved loan amount |
| As Disbursed Interest | Interest charged only on disbursed loan funds |
| Lopsided Deal | Rehab budget exceeds purchase or As Is value |
| GC Agreement | Contract with a licensed General Contractor |
| DSCR | Debt Service Coverage Ratio—used to qualify rental loans |
| PITIA | Principal, Interest, Taxes, Insurance, and Association Dues |
Instant Hard Money Loan Quote For Iowa
Whether you're flipping a three-bedroom in Iowa City, renovating a duplex in Bettendorf, or scaling your BRRRR portfolio in Cedar Rapids — we’re ready to help you move fast, secure capital, and grow your returns.
OfferMarket Capital LLC, our private lending division, is a trusted capital partner for thousands of real estate investors every month. Our Iowa clients benefit from:
💰 Private lending ☂️ Insurance rate shopping 🏚️ Off market properties 💡 Market insights
