Hard Money Loan Kansas

Last updated: May 9, 2025

At OfferMarket, our goal is to help Kansas real estate investors grow their wealth through smart property investments. To support you in your journey, we provide a comprehensive all-in-one platform that includes:

💰 Private lending
☂️ Competitive insurance shopping
🏚️ Access to off-market deals

Our Hard Money Loan program offers Kansas investors a fast, trustworthy, and competitively priced way to finance, refinance, and improve 1-4 unit residential investment properties across the state—from the suburbs of Kansas City to smaller towns like Salina and Hays.

Whether you’re planning to flip a property for quick profit or hold and refinance into a DSCR loan, we’d love to support your project and be part of your success story.

Let’s take a deep dive into how OfferMarket’s Kansas Hard Money Loan Program works!

What Is A Hard Money Loan?

A hard money loan is a short-term loan secured by a hard asset—in this case, a 1-4 unit residential property. It’s designed to help Kansas investors purchase, refinance, and renovate properties with speed and confidence.

These loans are commonly known as “bridge loans” or “fix and flip loans,” and these terms are often used interchangeably by investors across Kansas markets.

Hard Money Loan Scenarios

Hard money loans are particularly useful for Kansas investors pursuing these scenarios:

• Purchasing and renovating a distressed property—ideal when you want to minimize upfront cash by borrowing for both acquisition and rehab.

• Refinancing a property bought with cash to fund the renovation—especially useful in fast-moving markets like Wichita where sellers may prefer cash offers.

• Refinancing an existing loan to continue a project—handy when your current lender needs to be repaid but you still need time and capital to finish renovations.

• Acquiring a property without the intent to rehab—this works when purchasing below market value in areas like Topeka or Manhattan with the goal to resell "as is."

• Tapping equity from a cash purchase—unlock equity from a profitable buy to fuel your next deal.

• Refinancing after completing the rehab—gives you breathing room to sell or refinance into a long-term DSCR loan.

How It Works

Hard money loans have two core components:

• Initial Advance – Funds wired to the title company at closing to cover the purchase price.
• Construction Holdback – Funds reimbursed to you as you complete the renovation, based on verified progress.

Our Kansas hard money loans are built for flexibility. You can choose only an initial advance, only a construction holdback, or both—depending on your needs.

Most Kansas investors choose both components to maximize leverage and minimize the amount of personal capital used. Others may skip the construction holdback if they’re using their own funds or not planning to rehab.

If you’re buying with cash and just need a rehab budget covered—no problem. We can finance up to 100% of your renovation costs through the holdback structure.

Your exit strategy may involve flipping or holding as a rental. It’s fine if you haven’t decided yet—Kansas market conditions might influence your final path.

Say you originally plan to BRRRR (Buy, Rehab, Rent, Refinance, Repeat) a property in Overland Park, but later find the resale market is hot—pivoting to a flip could make more sense.

Or you intended to flip in a town like Lawrence but the market cools—renting and refinancing into a DSCR loan could be a smarter long-term move.

Dual exit strategies help reduce risk, which is especially important in a dynamic market like Kansas.

Who Uses Hard Money Loans?

Across Kansas—from Kansas City to Wichita—our hard money loan clients include:

Fix and Flip Investors (“Flippers”)
These are entrepreneurs who buy distressed homes, renovate them, and sell for profit. Whether you're targeting foreclosures in Topeka or distressed duplexes in Hutchinson, our financing helps you move quickly.

Rental Property Investors (BRRRR Method)
Buy, rehab, rent, refinance, repeat—this strategy is popular in stable rental markets like Olathe and Salina. Learn more about our Fix and Rent bundle, which offers both a hard money loan for acquisition and rehab and a discounted DSCR loan for the refi.

Many Kansas investors blend both strategies—flipping some properties while holding others long-term. This flexibility often leads to smarter, more profitable outcomes.

Hard Money Loan Program Guidelines

Project Eligibility

Our mission is to help Kansans build wealth through real estate, and a key part of that is managing risk effectively. OfferMarket boasts a foreclosure rate under 0.5%, a reflection of our commitment to responsible lending.

Inexperienced investors tackling extensive renovations in neighborhoods like Kansas City, KS, or in rural areas like Garden City may face greater risk. Such projects often lead to delays, overages, and losses—especially during economic uncertainty.

That’s why we take a hands-on approach. We’re not just lenders—we’re your Kansas-based deal advisor, capital partner, and risk manager. We’ll guide you through our structured rehab classification system and help determine your eligibility based on rehab scope.

Initial Advance

Your initial advance is based on your credit, track record, and the specific deal.

We evaluate:

• Investment properties owned in the past 24 months

• Verified rehab projects completed in the last 5 years

• Minimum credit score: 680 (preferred: 720+)

• Enhanced leverage for Kansas-based Realtors, GCs, and Professional Engineers

If your purchase price exceeds our valuation’s As Is opinion, we’ll base the advance on our valuation—not your contract price.

Your exit strategy also matters:

• Flip: We look for a minimum 30% margin and $15,000 profit.

• Rent/Refi: Must project a DSCR of at least 1.1 after repairs.

Properties in rural Kansas (e.g. outside Wichita Metro or Dodge City) may qualify for limited advances and require Tier 3 experience or higher.

Experience-Based Tiers

Initial Advance by Tier

(*) 85% is available for Kansas borrowers with exceptional credit and strong liquidity.

Adjustments to Initial Advance

Rehab Scope Classification

In Kansas, we encourage investors to stick with light to moderate projects, especially if you’re just getting started. Cosmetic rehabs in neighborhoods like Prairie Village or Leawood tend to be safer and faster to execute.

Rehab Scope Eligibility

Kansas investors should avoid jumping into heavy/extensive rehabs until they’ve gained meaningful experience. Even seasoned flippers in places like Lenexa or Derby know how costly a misstep can be.

LTARV Limits

Your Loan-To-After-Repair Value (LTARV) maximum is determined by your experience level and rehab classification.

If you're operating in lower ARV markets like Pittsburg, KS or Emporia, it’s important to align your strategy with the correct tier to access maximum leverage.

LTFC Limits

Loan-To-Full-Cost (LTFC) ratios are applied when your rehab budget exceeds the purchase price—common in heavy or extensive Kansas rehabs.

These limits ensure that Kansas borrowers have "skin in the game" and aren’t over-leveraged on high-risk projects.

Example: No Experience

Location: Wichita, KS
Purchase Price: $100,000
Tier: 1 (0 similar projects)
Credit Score: 695
Rehab Budget: $24,000
ARV: $150,000
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: Kansas City, KS
Purchase Price: $100,000
Tier: 1 (0 similar projects)
Credit Score: 750
Rehab Budget: $24,000
ARV: $150,000
Initial Advance: $80,000 (80%)
Construction Holdback: $24,000
Total Loan: $104,000
LTARV: 69.33%
LTFC: 83.9%
Interest Accrual: As disbursed

Example: 5 Experience

Location: Overland Park, KS
Purchase Price: $100,000
Tier: 4 (5+ similar projects)
Credit Score: 750
Rehab Budget: $20,000
ARV: $150,000
Initial Advance: $90,000 (90%)
Construction 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 Kansas lending strategy typically relies on cost basis (purchase price + sunk costs) to calculate your initial advance. This approach keeps your equity protected in the transaction.

However, for seasoned Kansas investors who own properties with current market value significantly above their original cost basis, we may allow lending based on As Is value—subject to specific criteria:

Requirements:

• Property must be in habitable condition (C4 or better)

• Minimum 3 years of ownership (seasoned)

• No default interest, late fees, or extensions in payoff letter

• Minimum credit score of 680

• Minimum Experience Tier: 3 (at least 4 similar projects completed)

• Neighborhood comps must support the As Is value

• Strong narrative (e.g., property was rented for 3 years and now needs upgrades)

If your project in Kansas City or a college town like Lawrence meets these guidelines, we’ll work with you to structure a fair and safe refinance solution.

Transactions Involving Wholesalers or Price Run-Ups

We frequently support Kansas investors purchasing through wholesalers or at marked-up prices—as long as the deal meets our underwriting rules.

Key Example:

• A-B Contract (Seller to Wholesaler): $100,000

• B-C Contract (Wholesaler to You): $125,000

• As Is Value: $125,000

• Maximum Value Basis: $120,000 (20% cap on price increase over A-B)

Wholesaler Transaction Guidelines in Kansas:

• Assignment/double-close fee may be included in value (up to 20%)

• Fee over 20% must be paid out-of-pocket

• Full contract chain (A-B and B-C) is required

• Must be an arm’s length transaction

• MLS-listed properties typically cannot have fee financed

• Finder’s fees and referral fees are not financeable

• Wholesaler’s operating agreement must be provided

This applies to deals across the state—whether you’re picking up a Wichita property from a wholesaler or flipping a single-family home in suburban Lenexa.

Construction Holdback

The construction holdback portion of your Kansas hard money loan is disbursed via draws—based on verified completion of your scope of work.

If you’ve got the liquidity to front rehab costs and prefer to avoid draws, you may opt out of the holdback.

For loan amounts under $100,000, you will accrue interest on the full loan amount (“full boat”). For loans $100,000 and up, interest accrues only on disbursed amounts (“as disbursed”).

From the Flint Hills to Johnson County, we’ve designed our construction funding process to be fast, simple, and contractor-friendly—so your Kansas rehab can stay on track.

Appraisal and In-House Valuation

Every hard money loan in Kansas requires a valuation. Depending on the property and your profile, OfferMarket may require:

• 3rd party interior appraisal

• 3rd party exterior appraisal

• In-house valuation

In-House Valuation

Even if you qualify for in-house valuation, OfferMarket may still require a third-party appraisal for properties in areas like Kansas City or Shawnee—at our sole discretion.

Exterior Appraisal

Exterior-only appraisals are allowed for these Kansas scenarios:

• REO (Real Estate Owned) sales

• Foreclosure or sheriff’s auction purchases

• Bankruptcy sales

Must be dated within 120 days of settlement (or recertified if between 120–179 days old).

Interior Appraisal

If your property doesn’t qualify for in-house or exterior valuation, an interior appraisal is required.

OfferMarket orders all appraisals via AMC. You’ll pay the invoice directly before we proceed. Unpaid appraisal fees will put your Kansas deal on hold.

Appraisal Transfer

Already have an appraisal done through a qualified AMC? You can transfer it to us if:

• It's under 180 days old

• Re-certified if between 120–179 days old

• Comes with a signed transfer letter confirming AIR compliance

• Includes appraisal PDF, XML file, and paid invoice

Scenario: Stabilized Hard Money Loan

If your Kansas property has no deferred maintenance and earns a C4 or better condition rating, it qualifies as “stabilized.” That means:

• We can lend based on the As Is value

• You can receive up to 75% LTV

• Ideal for finished or turnkey properties ready to rent or list

Whether you’ve finished a flip in Olathe or have a move-in-ready rental in Manhattan, KS—this structure lets you tap equity without waiting to sell or refinance through DSCR.

Key Loan Details

Extensions

Hard money loans are intended to be short-term—typically paid off within 12 months. Extending your Kansas hard money loan should be viewed as a backup plan, not your primary strategy. Extensions add cost, increase interest owed, and if mishandled, may put you at risk of foreclosure.

To avoid needing an extension in Kansas:

• Avoid unreliable general contractors

• Keep your rehab scope aligned with your experience

• Choose metro areas like Wichita or Overland Park for quicker permits and inspections

• Avoid delays due to tenant issues, evictions, or slow lease turnovers

• Always have both a flip and refi path to exit

Extension Terms and Fees

Extension Prerequisites

To qualify for an extension, your builder’s risk insurance must remain in effect through the new end date.

Ineligible Property Types

The following property types are not eligible for Kansas hard money loans under this program:

• Mixed use

• 5+ unit multifamily

• Condotels

• Co-ops

• Mobile/manufactured homes

• Commercial properties

• Cabins/log homes

• Properties with oil/gas leases

• Operating farms, ranches, orchards

• Vacation or seasonal rentals

• Unique/exotic/luxury homes

• Properties on dirt or unpaved roads

Exception Scenarios

We may still consider your Kansas loan under the following exceptions:

• Guarantor credit score between 660–679

• Leasehold land

• SFR with 500–699 SQFT

• 2–4 unit with any unit 400–499 SQFT

• Lending based on As Is value > cost basis

• Non-arm’s length transactions

• Financed interest payments

Borrower and Guarantor Requirements

Liquidity Verification

To ensure you have sufficient funds to safely execute your Kansas real estate project, we verify that the guarantor(s) have cash to close plus 25% of the rehab budget in liquid assets.

Eligible liquid assets include:

• Bank accounts (personal name)

• Bank accounts (borrowing entity name)

• Bank accounts (other business entity name — with operating agreement verification)

• Brokerage accounts (personal name)

• Brokerage accounts (borrowing entity name)

• Brokerage accounts (other business entity name — with operating agreement verification)

• Retirement accounts (personal name — 50% haircut applied due to restricted access)

Important guidelines for Kansas borrowers:

• You do not need a business bank account, though it is recommended for accounting clarity.

• You are not required to move funds; we only verify that your accounts meet the requirement.

• Cash to close will be confirmed in your settlement statement and wired by you to the title company or attorney.

Having liquidity verified upfront helps avoid mid-project cash flow issues and positions you for faster, smoother closings—especially in fast-moving Kansas markets like Johnson County or Sedgwick County.

Credit and Background Items

• If 3 credit scores returned: we use the middle score

• If 2 scores returned: we use the lower

• No mortgage tradelines: 6 months interest reserves required

• Fewer than 5 tradelines: 6 months reserves

• Bankruptcy: must be discharged 4+ years

• Foreclosure: must be completed 4+ years

• If bankruptcy/foreclosure is 4–7 years old: 3 months reserves required

• Late mortgage payments: may trigger ineligibility or require LOE

• Any past-due tradelines must be paid off

• Involuntary liens/judgments must be cleared

• Pending civil lawsuits: LOE required

• Criminal history: financial/repeat/serious crimes are ineligible or subject to review

Interest Reserves

Financed Interest Payments

To protect your liquidity during rehab in Kansas, you may be eligible for financed interest—where payments are deferred and added to your payoff.

Example:

• Loan Amount: $100,000

• Interest Rate: 12%

• Duration: 9 months

• Accrued Interest: $9,000

• Payoff: $109,000 ($100K principal + $9K interest)

This feature is ideal for active investors in markets like Kansas City, KS, or Salina who need to preserve cash for labor and materials.

Property Sourcing Guidelines

Kansas real estate investors should keep in mind:

• New market deals need a GC agreement or LOE for why it’s not needed

• Wholesale transactions and non-arm’s length deals require extra scrutiny

• Significant rehab projects, conversions, or condos need architect/engineer letters

• Submissions must include contracts, payoffs, track record, and entity docs

Insurance Guidelines for Kansas Hard Money Loans

It’s essential to protect both the structure and your liability.

Coverage Types & Limits

Policy Details:

💡 Pro tip for Kansas investors: Install smoke detectors and security systems as soon as you close to stay compliant with insurance terms and avoid denied claims.

Frequently Asked Questions

What states does OfferMarket lend in?

Kansas is fully supported! We also lend in nearly all other states except AK, AZ, HI, MN, ND, NV, OR, SD, UT, VT.

Can I have more than one hard money loan?

Yes! Many Kansas clients have multiple active loans. We’ll help assess your risk exposure to ensure sustainability.

Are hard money loans commercial?

Yes. Because they’re made to a business entity and for investment purposes, they’re considered commercial loans.

What’s the minimum loan amount?

$25,000.

Which property types are eligible?

Non-owner occupied: SFRs, 2–4 unit multifamily, townhomes, warrantable condos.

How is LTV calculated?

Initial advance is based on lower of As Is value or purchase price. LTARV = total loan ÷ After Repair Value.

What are credit requirements?

Minimum 680 FICO; 660–679 considered case-by-case.

What is “experience”?

Experience = completed rehab projects. Wholesaling does not count.

What Documentation Is Required?

Our Loan File system is designed to make it fast and seamless for Kansas investors to complete their application and move to funding. Documents required for the purchase or refinance of your Kansas investment property are uploaded once and securely stored in your OfferMarket account, so future deals move even faster.

Purchase Transaction Requirements

Refinance Transaction Requirements

Are there special rules for $1M+ loans?

Glossary of Key Terms

Instant Hard Money Loan Quote — Kansas

OfferMarket Capital LLC is proud to support Kansas real estate investors with competitive private lending and DSCR loans. Join thousands of active investors nationwide—membership is free and includes:

💰 Private lending
☂️ Insurance rate shopping
🏚️ Off market properties
💡 Market insights

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