Hard Money Loan Maine
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Last updated: May 9, 2025
At OfferMarket, we’re on a mission to empower Mainers to build long-term wealth through smart real estate investments. Whether you're tackling distressed properties in Bangor or taking on rentals in Portland, we’re here to support your journey. With our all-in-one investor platform, you get access to:
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Our Hard Money Loan Maine program is crafted for speed, dependability, and affordability. Whether you’re buying, rehabbing, or refinancing a 1-4 unit residential investment property, we make sure your financing is seamless and aligned with your goals.
Whether you plan to flip the property for a quick return or transform it into a cash-flowing rental and refinance into a DSCR loan, our team is ready to help you close deals and grow your portfolio across the Pine Tree State.
Let’s walk through what makes OfferMarket’s Hard Money Loan Maine program stand out.
What is a hard money loan?
A hard money loan is a short-term, asset-based loan secured by real property—typically used for 1-4 unit residential homes. In Maine, where charming but aged properties are common, these loans are a game-changer for investors seeking to buy, renovate, and resell—or rent and hold.
Also known as “bridge loans” or “fix and flip loans,” these financing tools offer real estate investors in Maine the speed and flexibility traditional bank loans can’t match.
Hard money loan scenarios
Real estate investors in Maine utilize hard money loans in a wide variety of situations. Some common examples include:
- Purchase and renovate an outdated or distressed property – for instance, picking up a weathered duplex in Lewiston and transforming it into a profitable flip without exhausting your own cash reserves
- Refinance a cash purchase and rehab the property – if you landed a fast deal in Auburn that required cash upfront, now you can leverage a hard money loan to complete the renovation
- Refinance an existing high-interest loan and finish the renovation – say your current lender wants repayment, but you're not done rehabbing your Biddeford investment—this loan can give you the time and funds you need
- Purchase a property below market value without rehabbing – scoop up a deal in Augusta and sell it as-is for a margin
- Refinance a cash deal without renovations – tap into equity from a Bangor buy to reinvest elsewhere
refinance an existing loan post-rehab – completed your Rockland flip? Use our hard money loan to buy more time before selling or refinancing
How it works
Hard money loans in Maine are structured with two distinct parts to provide flexibility and control over your project financing:
- Initial Advance – This portion of the loan is used to fund the purchase of the property. The funds are wired directly to the title company at the time of closing.
- Construction Holdback – This is the part of the loan reserved for rehab costs. It’s released to you through draw reimbursements once you show progress on the renovation.
Hard money loans are intentionally designed to fit your specific needs. You don’t need to use both parts. If you only need rehab funding for a fixer-upper in Waterville, you can skip the initial advance. Likewise, if you’ve got your own cash for the rehab, you can opt to take only the initial advance.
Many Maine investors opt to use both components to maximize leverage and reduce the use of their own capital. Some prefer to self-fund renovations and just use the loan to purchase properties. Others buy with cash and only utilize the construction holdback to cover their rehab in places like Saco or Sanford.
Your exit plan will determine how you wrap up the project—either with a flip for profit or a refinance into a long-term DSCR loan to create a rental portfolio. In Maine’s unpredictable market, flexibility is vital. You might enter thinking BRRRR (buy, rehab, rent, refinance, repeat), but discover better resale opportunities once the work is done.
Consider this: You plan to rent out a renovated multi-unit in Portland, but when you finish, the resale value surprises you. Selling becomes a smarter move. Alternatively, you intend to flip a single-family in Brunswick but pivot to renting it when the market cools. With a low prepayment penalty DSCR loan, you can rent now and sell later.
The key is focusing on deals in Maine that give you two strong exit options—so you stay in control, no matter how things unfold.
Who uses hard money loans?
Across Maine, hard money loans power the ambitions of two main groups:
- Fix and flip investors (“flippers”) – They specialize in acquiring and quickly renovating undervalued homes, especially in markets like Biddeford and Westbrook.
- Buy and hold investors using the BRRRR Method – These investors rehab, rent, and refinance properties to generate long-term cash flow in growing rental markets like Bangor, Lewiston, and beyond.
(*) Learn about our Fix and Rent bundle—a dual-loan solution that combines a Maine hard money loan for purchase and rehab with a discounted DSCR loan for your refinance.
Many OfferMarket clients in Maine don’t follow just one strategy. They adapt as needed—sometimes flipping, sometimes renting—depending on each project’s numbers and the local market’s pulse. That kind of flexible thinking is exactly what we encourage and support.
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
At OfferMarket, we take pride in supporting Maine’s real estate investors with risk-aware lending. Our default rate is under 0.5%—among the best in the business.
To help maintain this performance, we prioritize smart project selection. Inexperienced borrowers tackling “heavy” or “extensive” rehabs—like a full gut job on an old Victorian in Bath—face heightened risk, especially during economic slowdowns.
As your hard money lender, we’re more than a capital source—we’re your strategic partner. We'll guide you through risk analysis and deal viability.
Below is our framework for evaluating project eligibility based on rehab scope.
Initial Advance
How much we lend upfront depends on your experience and deal strength.
We look at:
Properties owned in the past 24 months
Completed rehab projects in the past 5 years
Minimum credit score: 680 (preferred 720+)
Bonus leverage for Realtors, General Contractors, and Professional Engineers
If your contract purchase price exceeds the As Is valuation, we base our advance on the lower of the two.
Your chosen exit strategy also matters. A planned sale should project a minimum 30% gross margin and $15,000 profit. Planning to rent and refinance? Your post-rehab DSCR should be at least 1.1.
Rural projects—say, a cabin in the woods of Aroostook County—require experience Tier 3+ and will receive lower advance amounts.
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% is possible for Tier 1 borrowers with excellent 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% (requires Tier 3+ experience) |
Rehab scope classification
| Rehab Scope | Definition |
|---|---|
| Light | Rehab budget < 25% of purchase price |
| Moderate | Rehab budget = 25%–49.99% of purchase price |
| Heavy | Rehab budget = 50%–99.99% of purchase price |
| Extensive | Rehab budget = 100%+ of purchase price (includes additions, ADUs, or low purchase price scenarios) |
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 |
| Extensive | Ineligible | Ineligible | Eligible | Eligible | Eligible |
LTARV Limits
| Tier | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Experience | 0 | 1-2 | 3-4 | 5-9 | 10+ |
| Light | 70% | 70% | 75% | 75% | 75% |
| Moderate | Ineligible | 70% | 75% | 75%< | 75% |
| Heavy | Ineligible | 70% | 75% | 75%< | 75% |
| Extensive | Ineligible | Ineligible | 70% | 70% | 70% |
LTFC Limits
| Tier | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Experience | 0 | 1-2 | 3-4 | 5-9 | 10+ |
| Light | 70% | 70% | 75% | 75% | 75% |
| Moderate | Ineligible | 70% | 75% | 75%< | 75% |
| Heavy | Ineligible | 70% | 75% | 75%< | 75% |
| Extensive | Ineligible | Ineligible | 70% | 70% | 70% |
Example: No Experience
Let’s say you’re an aspiring real estate investor in Waterville, Maine. You find a distressed single-family home listed off-market for $100,000. You plan to complete $24,000 in renovations and expect the After Repair Value (ARV) to reach $150,000. This is your first project—no prior fix and flip or BRRRR activity. Your credit score is a solid 695.
Because you have no verifiable experience (Tier 1), and your credit score is below 720, your initial advance is limited to 75%. Your construction holdback can still cover 100% of the rehab budget.
| Item | Value |
|---|---|
| Purchase price | $100,000 |
| Tier | 1 (0 similar 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 (interest on full amount from day 1) |
This approach minimizes upfront cash out of pocket while giving you the capital to complete your project, provided you stay within budget and schedule.
Example: No Experience, Excellent Credit
In this scenario, let’s say you’re still new to real estate investing in Maine, but your credit score is significantly higher—750. You’re working on a similar project in Bangor, with the same purchase price and renovation budget.
With a strong credit profile and Tier 1 status, you’re eligible for 80% leverage on the purchase. This increases your initial advance while maintaining 100% coverage of the renovation via construction holdback. Your interest is “as disbursed,” which means you're only paying interest on drawn funds, preserving liquidity early in the project.
| Item | Value |
|---|---|
| Purchase price | $100,000 |
| Tier | 1 (0 similar 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 (only on drawn funds) |
This configuration works well for risk-conscious borrowers who want to leverage great credit without overextending early in their investing career.
Example: 5 Experience
Let’s assume you’re a seasoned investor in Portland, Maine, with five similar fix-and-flip projects under your belt in the last five years. You’re targeting a new property acquisition priced at $100,000, and your renovation budget is relatively light at $20,000. You expect a strong resale value of $150,000.
With verified experience (Tier 4) and a credit score of 750, you qualify for our highest leverage tier—90% on the purchase and 100% on the renovation.
| Item | Value |
|---|---|
| Purchase price | $100,000 |
| Tier | 4 (5 similar verifiable experience) |
| 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 setup reflects the type of high-leverage deal experienced Maine investors pursue to maximize returns while maintaining capital efficiency.
Refinance Using As Is Value Instead of Cost Basis for Initial Advance
Our default policy when underwriting Maine hard money loan refinance requests is to use your total cost basis—which includes your purchase price and any capital expenditures made to date—as the reference for calculating your initial advance. This approach ensures you retain equity in the deal and demonstrates “skin in the game.”
However, there are strategic cases—especially with well-maintained properties in places like Westbrook, Auburn, or Brunswick—where the current As Is value exceeds your cost basis. In these scenarios, we may be able to provide a loan based on the As Is value instead.
To qualify, the following must be true:
The property is habitable and in at least C4 condition (meaning no deferred maintenance that would disqualify it from being rent-ready or listed for sale).
Minimum of 3 years of ownership or seasoning—typically with tenant occupancy or passive holding period.
Payoff statements must show no late fees, default interest, or extension charges from your prior lender.
Minimum credit score of 680 is required.
You must be Tier 3 or higher, with a track record of at least 4 similar, successfully completed rehab projects.
We require strong local comps to support the valuation exceeding your cost basis.
The use case must make sense—such as a property that was rented for several years, recently vacated, and now being renovated for resale.
This strategy allows experienced investors to unlock equity in seasoned Maine properties, particularly in neighborhoods where values have risen sharply but capital expenditures have been modest.
Transactions Involving Wholesalers, Price Run-Ups
If your Maine investment project involves a wholesaler, we can consider the assignment fee or double-close price markup in your loan amount—but within reason.
Here’s an example:
A-B contract (seller to wholesaler): $100,000
B-C contract (wholesaler to you): $125,000
As Is valuation: $125,000
In this scenario, we will treat $120,000 as the value basis—capping the price run-up at 20%.
To proceed with a wholesale deal, we need the following:
A full chain of contracts (A-B and B-C)
The wholesaler’s operating agreement
The property must be off-market—if it was listed on the MLS, we won’t finance the markup
The transaction must be arm’s length—no family ties, hidden ownership, or side agreements
We do not finance referral or finder’s fees
This ensures fair value while protecting both parties in non-traditional acquisitions—especially common in Maine’s rural and off-market pockets.
Construction Holdback
The construction holdback is a vital piece of the puzzle for many Maine real estate investors. It allows you to access funding in stages, based on the progress of your renovation work. This keeps your project moving while minimizing interest on unused funds.
When you request a draw, we verify the work completed through our self-service inspection app, then wire the appropriate funds. This process is designed to be quick and investor-friendly.
If you prefer to float your own rehab costs and don’t want this component in your loan, that’s completely acceptable.
Draw Processing Guidelines
| Criteria | Guideline |
|---|---|
| Minimum draw amount | None |
| Maximum draw amount | 100% of remaining construction holdback |
| Minimum number of draws | 0 |
| Maximum number of draws | None |
| Materials delivered but not installed | Up to 50% of value reimbursed (requires receipt/invoice) |
| Draw inspection | App-based, self-serve |
| Draw turnaround | 0 to 2 business days |
| Draw fee | $270 |
| Wire fee | $30 |
This structure makes it easy for Maine investors to focus on project execution without worrying about financial bottlenecks.
Appraisal and In-house Valuation
Every Maine hard money loan we originate requires a valuation. This ensures that both the lender and borrower have an accurate understanding of the property’s current and future worth. Depending on your borrower profile, property type, and loan details, we’ll determine which appraisal route best applies:
In-house valuation — available for experienced borrowers with strong credit and qualifying property types.
Exterior appraisal — used in specific auction or distressed sale scenarios.
Interior appraisal — required for most transactions not covered above.
Each method follows rigorous underwriting standards, and your assigned loan officer will guide you through what’s needed for your specific deal.
In-house Valuation
Our in-house valuation is a faster, cost-effective method of property valuation. It’s available to experienced Maine investors operating in familiar markets who meet the following criteria:
| Criteria | Eligibility Requirement |
|---|---|
| Property type | Single-family, duplex, triplex, or quadplex |
| Tier | 4 or higher |
| Credit score | 720+ |
| Rural location | Not eligible |
| New market | Not eligible |
| LTARV | Maximum 70% |
Even if you qualify for an in-house valuation, OfferMarket retains the right to order a third-party appraisal if risk indicators or documentation warrant further analysis.
Exterior Appraisal
An exterior-only appraisal may be used in certain acquisition scenarios, which are common in more competitive or distressed Maine markets. If your property falls into one of the categories below, we may be able to proceed with this streamlined method:
REO (Real Estate Owned) sale
Foreclosure auction
Sheriff’s sale
Online auction
Bankruptcy sale
To qualify, the appraisal must be no older than 120 days from the anticipated settlement date. If the appraisal is between 120 and 179 days old at time of settlement, a recertification is required. Beyond 180 days, a new appraisal will be needed.
Interior Appraisal
Any Maine property that does not meet the above criteria will require a full interior appraisal. This is especially important for properties with interior rehab plans, where the As Is value and After Repair Value (ARV) need careful verification.
| Property Type | Required Appraisal Forms |
|---|---|
| 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 will order the appraisal through our approved Appraisal Management Company (AMC) and provide you with the invoice. Your file will be marked on HOLD until this invoice is paid.
Appraisal Transfer
If you already ordered an appraisal through another lender and want to transfer it to OfferMarket, we’ll consider it as long as:
It was ordered via an approved AMC
It is less than 180 days old at closing
If older than 120 but under 180 days, it has been recertified
The transferring lender provides:
A signed transfer letter including the required AIR (Appraiser Independence Requirements) certification
A PDF of the appraisal report
An XML version of the report
Proof of payment for the appraisal invoice
This flexibility can help you speed up the process if you've already invested in third-party valuation services.
Scenario: Stabilized Hard Money Loan
If you're purchasing or refinancing a Maine property that’s already in good condition—with no deferred maintenance—you may qualify for our stabilized loan scenario. This is ideal for rental-ready homes or turn-key flips.
We use the As Is value for loan sizing and can fund up to 75% of that value depending on your experience tier. This scenario is commonly used by seasoned investors refinancing a property after light cosmetic improvements or a tenant turnover.
| Criteria | Guideline |
|---|---|
| LTV (maximum) | Tier 1: 70% Tier 2: 70% Tier 3–5: 75% |
| LTFC (maximum) | Tier 1: 80% Tier 2: 80% Tier 3–5: 90% |
| Appraisal condition rating | C1, C2, C3, or C4 |
| Loan term (maximum) | 12 months |
If your Portland property was rented for 3 years and is now being listed, this program might be the perfect fit.
Key Loan Details
This section summarizes the hard money loan program details that apply across the board for Maine investors, from Bar Harbor to Biddeford:
| Criteria | Details |
|---|---|
| Loan Amount | $25,000 to $2,000,000 |
| Units per Property | 1 – 4 |
| Eligible Property Types | Non-owner occupied residential: SFRs, 2–4 unit multifamily, condos, townhomes, PUDs |
| Property Minimum Size | SFR: ≥700 sq ft Condo/2–4 Unit: ≥500 sq ft 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 properties priced under $100K |
| Loan Term | 12 months standard; 18–24 months for select projects |
| Extensions | Up to 50% of original term (fees apply) |
| Points | 1.5 to 2 points (minimum $2,000) |
| Prepayment Penalty | None (no minimum interest earned) |
| Occupancy | Non-owner occupied only |
| Transaction Types | Arms-length purchase, refinance |
| Geographic Availability | 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 | Full boat (<$100K) or as disbursed (≥$100K) |
This table is your snapshot of how our program supports Maine real estate investors of all experience level
Extensions
Hard money loans are intended to be short-term, typically ranging from 12 to 24 months. At OfferMarket, most of our Maine clients close out their loans within 12 months—especially when managing flips or BRRRR projects in places like Portland, Augusta, or Lewiston.
That said, we understand that things don’t always go according to plan. Unexpected delays in permitting, slow contractors, or shifts in market conditions can impact your timeline. If needed, we offer loan extensions. However, this is not a strategy we recommend unless absolutely necessary, as extensions come with fees, added interest, and an elevated risk of foreclosure if the loan isn’t paid off once the extension cap is reached.
To avoid needing an extension on your Maine hard money loan, here are the most common red flags to steer clear of:
Hiring inexperienced general contractors with no verified track record
Taking on large-scale rehab projects without prior experience or adequate liquidity
Buying in municipalities with slow zoning, inspections, or permit processes
Acquiring properties with tenant holdovers or inherited leases that delay access
Pursuing projects that don’t offer a dual exit strategy (flip or refinance)
Mitigating these risks will dramatically reduce the chances of delays and maximize your returns.
Extension Limits
| Initial Loan Term | Max Extension Period |
|---|---|
| 12 months | 6 months |
| 18 months | 9 months |
| 24 months | 12 months |
You may request an extension in 3-month or 6-month increments. Your eligibility will be evaluated based on loan performance, project status, and insurance coverage.
Extension Terms and Fees
| 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 |
All extension fees will appear on your payoff statement and must be paid prior to approval of the extended term.
Extension Prerequisites
Before you can request a loan extension on your Maine project, we’ll confirm that:
Your builder’s risk insurance policy is active and will remain in force throughout the extension period.
Your draw history and progress are sufficient to justify more time.
You remain in good standing with all contractual terms.
Ineligible Property Types
While OfferMarket’s hard money loans are available for a wide range of Maine residential investment properties, the following property types are not eligible under this program:
Mixed-use buildings (residential + commercial)
5+ unit multifamily
Condotels (condo-hotels)
Co-ops
Mobile or manufactured homes
Commercial real estate (retail, office, industrial)
Cabins and log homes
Properties with oil or gas leases
Operating farms, orchards, or ranches
Vacation or seasonal rentals
Exotic or luxury properties with unconventional features
Properties located on unpaved or dirt roads
These exclusions are in place due to valuation difficulty, resale limitations, and lending risk. If you’re targeting a Maine property that falls outside these restrictions, we may be able to assist through a different loan program.
Exception Scenarios
In some cases, we make exception-based approvals for scenarios that fall just outside standard guidelines. If you’re an experienced investor with strong documentation and liquidity, we may consider:
Guarantor credit score between 660–679
Leasehold (ground rent) properties
Small single-family homes between 500–699 sq ft
2–4 unit properties where one or more units are 400–499 sq ft
Funding based on As Is value above cost basis (requires 3+ years of seasoning and Tier 3+ experience)
Non-arm’s-length transactions (requires full disclosure and justification)
Financed interest payments (see below)
Each exception is reviewed individually by our loan committee and must include a compelling rationale.
Borrower and Guarantor Requirements
Before we can fund your Maine hard money loan, we must verify that both your borrowing entity and your guarantor(s) meet minimum eligibility requirements. This ensures sound underwriting and safeguards both parties during the project lifecycle.
| Requirement | Details |
|---|---|
| Structure | LLC or Corporation |
| Ineligible Entities | Nonprofits are not eligible |
| Eligible Borrowers | U.S. Citizens, U.S. Permanent Residents, and qualified Foreign Nationals |
Foreign nationals must provide:
Valid Passport
Valid U.S. Visa (excluding travel/student visas unless part of a Visa Waiver Program)
U.S. FICO score (if serving as guarantor)
| Criteria | Details |
|---|---|
| Minimum Credit Score | 680 (exceptions down to 660) |
| Credit Report Type | Tri-merge credit report (must be <120 days old) |
| Limited Tradelines (fewer than 5) | Requires additional interest reserves |
| No mortgage tradelines | Requires 6 months of interest reserves |
We use the middle score of 3 scores, or the lower score if only two are available.
Liquidity Requirements
We verify that guarantors control liquid assets equal to at least the estimated cash to close + 25% of the rehab budget. Liquidity can come from:
Personal or business checking/savings accounts
Brokerage accounts (personal or business)
Retirement accounts (subject to 50% reduction due to access limitations)
You’ll need to provide:
Two most recent statements for each account
Letter of Explanation (LOE) for large deposits
No need to consolidate funds or open a business account—though having one is strongly encouraged for best accounting practices.
Interest Reserves
Interest reserves refer to prepaid interest payments collected at settlement and held in servicing escrow. These funds are drawn down before the borrower starts making out-of-pocket monthly interest payments.
This feature is particularly useful for Maine investors who want to maintain liquidity during the early phases of renovation or during periods of lower rental income.
| Interest Reserve | Scenario |
|---|---|
| 0 month | At lender’s discretion |
| 1 month | Guarantor FICO 700+ |
| 3 months | Guarantor FICO between 660–699 |
| 6 months | FICO 660–699 AND/OR red flags on credit or background |
The more risk your file presents, the more months of reserves we may require to protect your loan and your credit profile.
Financed Interest Payments
As a Maine investor, your liquidity is critical. For certain borrowers, we offer the ability to finance monthly interest payments, which means they are added to your payoff statement rather than being paid monthly out-of-pocket.
This feature is beneficial when you want to:
Avoid high utilization on personal credit cards during rehab
Reduce the risk of missed payments
Retain capital for materials, contractors, or additional acquisitions
Example:
| Details | Calculation |
|---|---|
| Total loan amount | $100,000 |
| Interest rate | 12% |
| Months held | 9 |
| Accrued interest | $9,000 |
| Payoff total | $109,000 (principal + financed interest) |
This structure enables smoother project execution, especially for flips with short timelines or rentals nearing stabilization.
Property Sourcing Guidelines
We support real estate investors across Maine—whether you’re acquiring properties in traditional sale channels, auctions, or through wholesaling. To ensure transparency and loan quality, we follow detailed sourcing protocols:
New Market Rule: If you’re buying in a Maine town where you have no track record, a General Contractor agreement or Letter of Explanation is required.
Wholesale/Assignment Deals: Additional documentation is required, including assignment agreements and full contract chains.
Permits: For large-scale renovations or additions, permits or professional letters from an architect or engineer may be required.
Condos or conversions: Similar rules apply for unit conversions or value-add condo deals.
Always submit:
Purchase contracts and assignments
Track record details
Entity documents (Operating Agreement, Articles, etc.)
Proof of funds
Payoff letters (if applicable)
Our Maine team will guide you through these documents to avoid delays and surprises.
Insurance Guidelines for Hard Money Loans
Your project isn’t just an investment—it’s a physical asset that needs to be protected. We require that you carry appropriate Builders Risk insurance, also known as “Fix and Flip Insurance,” throughout the life of the loan.
This specialized coverage protects your property from:
Fire and weather damage
Theft or vandalism during rehab
Liability if someone is injured onsite
Coverages and Limits
| Coverage Type | Limit | Required |
|---|---|---|
| Dwelling | Replacement Cost or Loan Amount | Yes |
| Liability | $1M per occurrence / $2M aggregate | Yes |
| Builders Risk | Included in policy | Yes |
| Flood | Greater of $250,000 or loan balance (if in FEMA Flood Zone) | Conditional |
Coverage Details
| Coverage Item | Requirement |
|---|---|
| AM Best Rating | A- VIII or greater |
| Policy Type | Special Form (broad coverage) |
| Deductible | Between $1,000 and $5,000 |
| Lender’s Designation | Mortgagee and Additional Insured |
| Exclusions | No exclusions for windstorm, hail, or named storms |
| Cancellation Notice | 30-day notice required to cancel |
💡 Pro Tip: As soon as you take title to your property in Maine, install smoke detectors, locks, and security cameras. These small steps ensure compliance with your policy and prevent denied claims.
Frequently Asked Questions
Does OfferMarket fund hard money loans in Maine?
We fund hard money loans in nearly every U.S. state—including Maine. In states where licensing or regulatory constraints apply (e.g. Nevada, Minnesota, Utah), we partner with licensed local lenders through our rate shopping service.
Can I have more than one hard money loan?
Yes! Many of our Maine clients have multiple loans in progress. However, we prioritize risk management. If your liquidity or deal flow doesn’t support another loan safely, we’ll work with you to create a sustainable growth plan.
Are hard money loans considered commercial?
Yes. All hard money loans are classified as business-purpose, commercial loans. They are issued to your LLC or Corporation, not to you as an individual.
What is the minimum loan amount?
Our minimum is $25,000, which makes the program accessible for even the smallest fix-and-flip deals in Maine’s more rural counties.
Which property types are eligible?
We fund:
Non-owner occupied 1–4 unit residential
Single-family homes
Townhomes
2–4 unit multifamily
Warrantable condominiums
We do not fund:
Mixed-use properties
Properties with 5+ units
Hotels, co-ops, or manufactured homes
How do you calculate Loan-To-Value (LTV)?
LTV is based on the As Is value
LTARV is based on the After Repair Value (ARV) from your appraisal or in-house valuation
Initial advances are determined by the lesser of the As Is value or contract purchase price.
What are the credit requirements?
Minimum credit score is 680
Exceptions may be made for scores between 660–679
We look only at members of the borrowing entity who will personally guarantee the loan
What are the experience requirements?
Experience is not required, but having it increases your borrowing power. Once you submit your Track Record, we’ll verify past projects, settlement statements, and rehab scopes.
Does wholesaling count as experience?
No. Because wholesalers don’t take on financial risk or rehab responsibilities, these deals do not count toward your experience score.
What documentation is required?
We’ve streamlined the loan process for Maine real estate investors with our digital Loan File system, designed to minimize friction and expedite your path to funding. Whether you’re purchasing a distressed duplex in Bangor or refinancing a rental in Auburn, our portal organizes all requirements into clearly defined sections.
The documentation required depends on whether your hard money loan is a purchase or refinance. Here’s what we need for each scenario:
Purchase Transaction Requirements
| Loan File Section | Requirement |
|---|---|
| Purchase Contract | Fully executed by both buyer and seller |
| Credit Report | Soft tri-merge report for each borrowing entity guarantor |
| Background Report | Required for every guarantor |
| Track Record | Rehab history for each guarantor |
| ID Verification | Valid government-issued photo ID (driver’s license, passport, green card) |
| Borrowing Entity Docs | Articles of Organization or Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9 |
| Scope of Work | Detailed budget used to evaluate ARV and draw requests |
| Appraisal Report | Link provided for invoice payment; report uploaded to your file |
| Bank Statements | Two most recent statements per guarantor (personal or business) |
| Letter of Explanation | If requested (e.g. large deposits, past delinquencies, background items) |
Refinance Transaction Requirements
| Loan File Section | Requirement |
|---|---|
| Settlement Statement | Executed closing document from previous purchase |
| Credit Report | Soft tri-merge report for each borrowing entity guarantor |
| Background Report | Required for every guarantor |
| Track Record | Details of prior rehab projects completed by each guarantor |
| ID Verification | Government-issued ID (driver’s license, passport, etc.) |
| Borrowing Entity Docs | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9 |
| Sunk Costs | List of all expenses to date including purchase and rehab work |
| Scope of Work | Detailed plan for future renovation used to establish ARV |
| Appraisal Report | Appraisal invoice and report uploaded to loan file |
| Bank Statements | Two most recent personal or business statements per guarantor |
| Letter of Explanation | Required when underwriting identifies anomalies or concerns |
OfferMarket stores reusable documents in your borrower portal to speed up future applications, making repeat projects across Maine faster and easier to fund.
Are there special requirements for loans over $1 million?
Yes. If your hard money loan in Maine exceeds $1 million—up to our maximum of $2 million—you’ll need to meet more stringent criteria. Larger loans carry higher risk, so we apply stricter underwriting standards.
| Criteria | Requirement |
|---|---|
| Experience | Minimum of 3 similar projects; ideally at comparable price points |
| Market Liquidity | At least 3 recent comparable sales (within 2-mile radius, closed in past 6 months) must exist in the MLS |
| Credit Score | 680+ with a minimum of 5 active tradelines, each with 24-month history |
| Rural Properties | Not eligible if designated rural by CFPB, USDA, or appraisal |
| Track Record | Required for every guarantor in the borrowing entity |
This ensures that borrowers taking on seven-figure hard money loans in Maine are well-qualified and operating in sufficiently liquid markets.
Glossary of Key Terms
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit—a secondary unit on the same property |
| Arms-length | A deal between unrelated, independent parties |
| Non-arms-length | A deal between parties with a close relationship |
| Initial Advance | Portion of loan used to fund the purchase |
| Construction Holdback | Portion of loan used for renovation; paid via draws |
| Interest Reserves | Prepaid interest held in escrow |
| LOE | Letter of Explanation—for clarifying irregularities in your file |
| LTC | Loan-to-Cost: loan vs. (purchase + rehab cost) |
| LTFC | Loan-to-Full-Cost: relevant for extensive rehab projects |
| LTV | Loan-to-As-Is-Value |
| LTARV | Loan-to-After-Repair-Value (ARV) |
| Full Boat Interest | Interest charged on total loan amount, regardless of draw schedule |
| As Disbursed Interest | Interest charged only on drawn funds |
| Lopsided Deal | When rehab budget exceeds purchase price or As Is value |
| GC Agreement | General Contractor agreement for project execution |
| DSCR | Debt Service Coverage Ratio: Rent ÷ Monthly debt obligations |
Instant Hard Money Loan Quote
At OfferMarket Capital LLC, we specialize in private lending for 1–4 unit residential investment properties in Maine. Whether you're flipping historic homes in Portland or building out a rental portfolio in Lewiston, we’d love to be your financing partner.
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