Hard Money Loan Louisiana

Last updated: May 9, 2025

At OfferMarket, our goal is to help you grow your real estate wealth throughout Louisiana’s dynamic property landscape. Whether you're investing in Baton Rouge, New Orleans, Lafayette, or Shreveport, we provide a seamless platform to accelerate your journey:

💰 Flexible private lending
☂️ Competitive insurance quotes
🏚️ Access to exclusive off-market opportunities

Our Louisiana Hard Money Loan program delivers swift, reliable, and cost-effective financing to help you purchase, refinance, or renovate 1–4 unit residential investment properties throughout the Pelican State.

Whether your exit plan is to flip the property for a fast profit or refinance it into a DSCR loan to hold as a rental, we’d be honored to earn your business and support your path to success.

Let’s explore what makes OfferMarket’s Hard Money Loan Program the right fit for Louisiana investors.

What is a hard money loan?

A hard money loan is a short-term, asset-based loan secured by investment property. In Louisiana, that typically means residential real estate with 1–4 units. Investors use these loans to buy, renovate, and either sell or rent out properties.

Also known as “bridge loans” or “fix-and-flip loans,” these financing tools are popular among Louisiana real estate investors and private lenders for their flexibility and speed.

Hard money loan scenarios

Louisiana real estate investors turn to hard money loans for a variety of strategies, such as:

• Acquiring and fixing up distressed properties—ideal when you want to avoid tying up personal capital.

• Refinancing a property you bought with cash and now need funding to complete renovations.

• Paying off an existing loan while still finishing repairs on a property in New Orleans or Baton Rouge.

• Buying undervalued properties with no rehab plans—like flipping “as is” homes in Lafayette or Lake Charles.

• Tapping equity from a cash purchase to fund your next project in Shreveport or Monroe.

• Refinancing post-rehab when the improvements are done but you need extra time to sell or refinance.

How it works

Hard money loans in Louisiana come with two core funding components:

• Initial Advance: This portion goes toward the property purchase. Funds are wired to the title company at settlement.

• Construction Holdback: This is allocated for renovations and disbursed to you as work is completed.

The program is highly customizable. You can opt for just the purchase funding, just the rehab budget, or both—depending on your needs.

Most Louisiana investors leverage both to minimize their cash outlay. Some choose to handle rehab with personal funds, while others buy with cash and use a construction holdback to fund renovations without dipping into savings.

Your chosen exit strategy—whether flipping or refinancing into a DSCR loan—will shape how you use the funds. Market conditions across Louisiana may influence your direction. For instance, if you expected to BRRRR in Baton Rouge but the resale market spikes, flipping might make more sense.

Or you might have planned to flip in Metairie but instead rent the property due to a market slowdown. Having a flexible exit strategy helps you adapt and reduce risk.

Who uses hard money loans?

• Fix-and-flip investors working neighborhoods across New Orleans and the Northshore.

• BRRRR investors buying rentals in Baton Rouge, Shreveport, and beyond.

* Learn more about our Fix and Rent bundle that combines a Louisiana hard money loan with a discounted DSCR refinance option.

Many investors we work with across the state use a hybrid approach—flipping some homes and holding others, depending on the deal dynamics. This adaptive strategy is a hallmark of savvy Louisiana investors.

Hard Money Loan Program Guidelines

Project Eligibility

At OfferMarket, we are committed to empowering Louisiana investors with the tools to grow safely and strategically. Across all the loans we’ve originated, fewer than 0.5% have ever gone into foreclosure—a testament to our shared commitment to smart investing.

That’s why we focus so much on managing project risk, especially in parishes and neighborhoods where the property condition, pricing, or regulations vary widely.

Louisiana’s markets—from Ascension Parish to Orleans Parish—include everything from light cosmetic updates to deep rehabs. Projects that require extensive work often come with greater risk. They’re more likely to face delays, budget overruns, and market uncertainty.

We view our role as more than just a lender. We're also a deal advisor and risk manager. We want to help you confidently build a portfolio across Louisiana without overextending.

The following sections explain how we classify rehab scopes and determine eligibility based on your experience.

Initial Advance

Your initial advance—how much we’ll fund for the purchase—depends on both your background and the specifics of your Louisiana deal.

We assess:

• The number of similar properties you've rehabbed in the past 5 years

• How many investment properties you’ve owned over the last 24 months

• Minimum credit score of 680 (720+ preferred for full leverage)

• Increased leverage for licensed Louisiana Realtors, General Contractors, and Engineers

If your purchase price exceeds the “As Is” value from our appraisal or in-house evaluation, we’ll base the loan amount on the lower As Is value.

Your intended exit plan also plays a role. For flip scenarios, we want to see at least 30% projected gross margin and $15,000 profit. For BRRRR strategies, we look for a minimum 1.1 DSCR post-repair.

Rural properties—like those in parts of northern or western Louisiana—may require a more conservative advance and more experience (Tier 3+).

Experience-based Tiers

Initial Advance by Tier

* Exceptions to 85% possible for borrowers with strong credit and liquidity.

Adjustments to Initial Advance

Rehab Scope Classification

In Louisiana, it's common to see properties in areas like St. Bernard or Plaquemines Parishes that are undervalued due to storm damage or deferred maintenance. Categorizing your rehab scope correctly helps ensure you access the right financing terms.

Rehab Scope Eligibility

Projects in older Louisiana housing stock—especially outside city centers—often qualify as moderate or heavy. For first-time investors, we recommend starting with light cosmetic rehabs in more stable neighborhoods like Metairie or Prairieville.

LTARV Limits

If you're working on properties with strong ARV potential—like historic homes in Mid-City New Orleans or high-demand areas in Lafayette—maximizing your LTARV is essential.

LTFC Limits

These limits apply when your project cost (purchase + rehab) is outweighed by the renovation budget. This is common in deeply discounted properties often found at Louisiana sheriff’s sales or estate auctions.

Example: No Experience

• Purchase Price: $100,000

• Tier: 1 (no verifiable experience)

• 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

This might be a scenario for someone buying a vacant double shotgun home in Baton Rouge for their first flip.

Example: No Experience, Excellent Credit

• Purchase Price: $100,000

• Tier: 1 (no verifiable experience)

• 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

This is a great fit for a first-time investor in New Iberia with strong financials, seeking to get into the market with light rehab.

Example: 5 Experience

• 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 Amount: $110,000

• LTARV: 73.33%

• LTFC: 91.67%

• Interest Accrual: As Disbursed

This investor might be an experienced flipper working across Slidell or Kenner, optimizing both speed and leverage.

Refinance Using As Is Value Instead of Cost Basis

If you're refinancing a seasoned property in Louisiana—perhaps a long-term rental in Lake Charles—and the appraised As Is value exceeds your original cost, we can underwrite based on that value instead.

Requirements:

• Property must be habitable (C4 condition or better)

• At least 3 years of ownership seasoning

• Credit score of 680+

• At least Tier 3 experience (4+ rehab projects)

• Strong comps in local market

• No default interest or excessive fees in current payoff

• Must be a supportive scenario (e.g., unit was rented, now needs rehab to sell)

Transactions Involving Wholesalers or Price Run-Ups

In Louisiana’s fast-paced investment scenes—from Jefferson Parish to St. Tammany—you may encounter wholesaler deals or double closes.

We allow inclusion of assignment fees or price increases, provided they meet the following:

• Price bump is no more than 20% of original A-B contract

• Full transparency on A-B and B-C contracts

• No MLS-listed properties

• No finder/referral fees

• Must be an arm’s length transaction

Example:

• A-B Contract: $100,000

• B-C Contract: $125,000

• As Is Value: $125,000

• Advance Basis: $120,000

Construction Holdback

Your Louisiana hard money loan includes a construction holdback—funds reserved for renovation and released as work is completed.

For investors managing renovations in cities like Monroe or Bossier City, this fast and easy draw process means you stay in control of project timelines.

Appraisal and In-House Valuation

Every OfferMarket hard money loan in Louisiana requires a valuation. Depending on your scenario, this could be a full appraisal, exterior appraisal, or in-house valuation.

In-House Valuation

Even experienced Baton Rouge or Alexandria investors may still be subject to exterior or full appraisal at our discretion.

Exterior Appraisal

Exterior-only appraisals are allowed in the following scenarios:

• REO sales

• Foreclosure auctions

• Sheriff’s sales (common across many Louisiana parishes)

• Online/bankruptcy auctions

These appraisals must be no older than 120 days at settlement. If between 120 and 179 days old, recertification is required.

Interior Appraisal

For properties in New Orleans, Lafayette, or any scenario not covered under the previous sections, a full interior appraisal will be required.

We’ll manage the appraisal process. Just pay the AMC invoice, and we’ll handle the rest.

Appraisal Transfer

If you already have an appraisal from a Louisiana transaction, OfferMarket may accept it provided:

• Ordered via approved AMC

• Less than 180 days old at loan closing

• Recertification available if older than 120 days

• Transfer letter includes AIR compliance certification

• PDF + XML + paid invoice must be submitted

This flexibility benefits repeat Louisiana investors working across parishes or closing multiple properties in quick succession.

Scenario: Stabilized Hard Money Loan

If your property is move-in ready with an appraisal condition of C4 or better, we can fund up to 75% of the As Is value.

Ideal for stabilized rentals in Baton Rouge, or “clean” flips in the New Orleans suburbs.

Key Loan Details

Extensions

Though Louisiana investors typically complete projects within 12 months, extensions are available if needed.

Avoiding extensions is ideal, as they incur fees and create foreclosure risk if unpaid.

Common risk factors in Louisiana to watch out for:

• Slow permitting in historic districts (e.g., New Orleans)

• Heavy rehabs with cost overruns

• Problematic tenants in inherited properties

• Lack of dual exit strategies in smaller towns

Extension Limits

Extension Terms and Fees

Note: Builders risk insurance must be active during the extension.

Ineligible Property Types

OfferMarket cannot fund the following properties in Louisiana or any other state:

• Mixed-use

• 5+ unit multifamily

• Condotels

• Co-ops

• Mobile/manufactured homes

• Commercial buildings

• Cabins or log homes

• Properties with oil/gas leases

• Operating farms, ranches, or orchards

• Vacation rentals or seasonal use homes

• Properties on unpaved or dirt roads

• Unusual or luxury estates

Borrower and Guarantor Requirements

* Retirement accounts count at 50% value due to liquidity restrictions.

Liquidity Verification

To ensure you're financially equipped to handle your Louisiana project, we verify that you—along with any guarantors—have at least:

• Estimated cash to close

• Plus 25% of the rehab budget in liquid assets

This protects you from overleveraging, especially during unpredictable project phases or unexpected costs (e.g. permitting delays in New Orleans or labor issues in Baton Rouge).

Eligible Liquid Assets:

• Personal bank accounts

• Business bank accounts

• Brokerage accounts (personal or business)

• Retirement accounts (valued at 50%)

We verify liquidity through two most recent account statements. No seasoning required. If funds came in recently, just provide a letter of explanation for large deposits.

You are not required to transfer funds into a specific account or make changes to your structure—our goal is to confirm you can fund the project safely.

Credit and Background Items

To protect our investors and maintain a low default rate across Louisiana, our underwriting also evaluates credit and background.

Key Rules:

• Tri-merge credit reports are required.

• We use the middle score if 3 scores are returned, and the lower if 2 scores are present.

• No mortgage tradelines? → 6 months reserves required.

• <5 tradelines? → 6 months reserves required.

• Bankruptcy must be discharged >4 years ago.

• Foreclosures must be completed >4 years ago.

• Past bankruptcies/foreclosures in 4–7 year window require 3 months reserves.

• Late mortgage payments? → letter of explanation (LOE) required.

• Past due balances or liens must be resolved before closing.

• Pending lawsuits (civil or criminal) must be disclosed.

• Financial or serious crimes are not eligible. Repeat offenses require LOE.

Interest Reserves

Interest reserves are used to cover interest during your project timeline. They are collected at settlement and held in escrow.

This buffer protects your liquidity and ensures uninterrupted project progress, particularly in more complex Louisiana deals.

Financed Interest Payments

To help preserve your credit and cash flow, OfferMarket may finance your interest. That means monthly interest isn’t paid from your account—it’s added to your final payoff.

Example:

• Loan amount: $100,000

• Rate: 12%

• Duration: 9 months

• Accrued interest: $9,000

• Final payoff: $109,000

This is popular among Louisiana investors doing larger rehabs or managing multiple projects concurrently.

Property Sourcing Guidelines

Louisiana investors must provide:

• Purchase contracts

• Settlement statements

• Payoff letters (if refinancing)

• Rehab scope with budget

• Entity formation docs

• Track record documents (if applicable)

For new markets (e.g. a first-time project in Alexandria or Hammond), a GC agreement or explanation for self-managed rehab is required.

Condos, extensive rehabs, or older properties may require engineer/architect letters or permits.

Insurance Guidelines for Hard Money Loans

Louisiana’s weather risks (flooding, hurricanes) make proper insurance critical. Your policy must include:

Policy Guidelines

• AM Best rating: A- VIII or better

• Policy Type: Special Form

• Deductible: $1K–$5K

• Designation: Mortgagee & Additional Insured

• Exclusions: No windstorm/hail/named storm exclusions

• Cancellation: 30-day notice required

💡 Tip: As soon as you close, install locks, smoke detectors, and security cameras to remain compliant and avoid coverage gaps.

Frequently Asked Questions About Louisiana Hard Money Loan

What states does OfferMarket provide hard money loans in?

OfferMarket proudly serves real estate investors in Louisiana as well as nearly every other U.S. state. We directly fund in most regions; however, in the following states, where specific licensing is required or our lending is facilitated through partners, we act as a rate shopping service:
Alaska, Arizona, Hawaii, Minnesota, North Dakota, Nevada, Oregon, South Dakota, Utah, Vermont.

Is it possible to have multiple hard money loans at the same time?

Yes, absolutely. Many of our clients across Louisiana, especially those working multiple projects in cities like Baton Rouge, New Orleans, or Lafayette, maintain multiple loans simultaneously. That said, we prioritize responsible growth—if we believe your liquidity or project management bandwidth could be stretched too thin, we’ll discuss these concerns with you to help mitigate risk.

Are hard money loans considered commercial loans?

Yes. All hard money loans issued by OfferMarket are strictly business purpose loans. They are structured for entities—such as LLCs or corporations—and classified as commercial credit facilities, even though they are secured by residential real estate.

What’s the minimum loan size?

Our minimum hard money loan size is $25,000, making it accessible even for smaller investment projects in markets like Alexandria, Monroe, or Lake Charles.

Which types of properties are eligible for funding?

We finance non-owner occupied 1–4 unit residential real estate, which includes:

• Single-family homes

• Duplexes, triplexes, fourplexes

• Warrantable condominiums

• Townhomes and PUDs (Planned Unit Developments)

Note: Mixed-use properties, 5–9 unit residential buildings, and commercial properties fall outside this program but may be eligible under our other loan offerings.

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

In the context of Louisiana hard money loans, we use two LTV metrics:

• LTV (Loan-to-Value): Based on the As Is value or purchase price, whichever is lower

• LTARV (Loan-to-After-Repair Value): Based on the projected property value after rehab is completed

Example:
If your total loan (initial advance + rehab holdback) is $120,000 and the ARV is $160,000, your LTARV would be 75%.

What are the credit score requirements?

We require a minimum FICO score of 680. In select cases, we may consider borrowers in the 660–679 range with compensating strengths (e.g., strong liquidity, solid experience). We evaluate the credit score of every individual who will be personally guaranteeing the loan.

Non-guarantor members of the borrowing entity are not subject to credit review.

Is prior real estate investing experience necessary?

No. First-time investors throughout Louisiana are welcome to apply.

However, we use a tiered system to reward experience with better leverage. Investors who have successfully completed multiple rehab projects can qualify for higher loan-to-cost and loan-to-ARV ratios.

Does wholesaling experience count toward my experience tier?

No. Acting as a wholesaler—meaning you assigned or double-closed on a property without rehabbing it—does not count as verifiable experience for the purposes of our loan program.

Our underwriting focuses on hands-on experience managing construction budgets, timelines, and exit strategies.

What documentation is required?

Purchase Transaction Documentation

Refinance Transaction Documentation

Are there additional requirements for loans over $1,000,000?

Yes, loans over $1 million (up to our max of $2 million) require more stringent qualification.

This ensures borrowers taking on larger projects in Louisiana markets—especially those outside the metro core—have the experience and financial foundation to execute successfully.

Glossary of Key Terms

Instant Hard Money Loan Quote

OfferMarket Capital LLC is one of the nation’s leading private lenders for 1–4 unit residential real estate investment properties. Our specialized lending programs — including hard money loans and DSCR refinance options — are trusted by investors throughout Louisiana, from New Orleans to Shreveport, Baton Rouge to Lake Charles.

Whether you're flipping a shotgun double in Mid-City or converting a duplex in Lafayette into a rental, we’re here to help you succeed.

Why Louisiana Investors Choose OfferMarket:

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

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