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Last updated: May 13, 2025
OfferMarket is not NMLS licensed in Minnesota. To serve real estate investor clients in Minnesota, we operate as a rate shopping service and process your loan with the most competitive licensed capital provider on our platform.
At OfferMarket, we’re dedicated to helping Minnesotans unlock wealth-building opportunities through real estate. Whether you’re flipping properties in Minneapolis, building rental portfolios in St. Paul, or renovating distressed homes across the Land of 10,000 Lakes, we offer an all-in-one platform to support your journey:
💰 Private lending
☂️ Insurance rate shopping
🏚️ Off-market properties
Our Minnesota Hard Money Loan program is tailored for fast, reliable, and competitively priced financing to acquire, refinance, and upgrade 1-4 unit residential investment properties throughout the North Star State.
Whether your end game is to fix and flip for a quick return or hold and refinance into a DSCR loan for passive income, we’re excited to be a strategic partner in your investment success.
Let’s explore the OfferMarket Hard Money Loan program in Minnesota!
A hard money loan is a short-term financing solution secured by residential real estate (1-4 units). It’s commonly used in Minnesota to purchase, renovate, or refinance investment properties — particularly those needing rehab — to either resell for profit or convert into long-term rentals.
These loans are frequently known by other names like “bridge loans” or “fix and flip loans,” especially among Minnesota’s active real estate investing community and private lending circles.
Across Minnesota, real estate investors rely on hard money loans for the following situations:
Buying and renovating a distressed or outdated home — say a fixer-upper in Duluth or Rochester — using leverage rather than all cash.
Refinancing a cash-purchased home to pull out equity and begin renovations — for instance, a fast-close deal in Mankato that now needs funds for upgrades.
Refinancing an existing loan on a partially rehabbed property — when your current lender needs to be repaid but you still have work to finish before selling or renting.
Purchasing a property with no planned rehab — such as buying below-market properties in Saint Cloud to resell as-is.
Refinancing an as-is cash purchase — allowing you to extract equity for your next investment.
Refinancing a completed rehab to extend your timeline — giving you more breathing room to sell or transition to a rental loan.
Minnesota hard money loans are built with two key components:
You have the flexibility to use both components together, or just one — depending on your needs. Most Minnesota investors opt for both to stretch their capital further. However, some prefer to fund their own renovations or aren’t planning improvements, using only the initial advance.
Others who buy properties outright with cash might only use a construction holdback to fund a full rehab — up to 100% of their budget.
Your strategy might be to flip for profit or refinance into a long-term DSCR loan. It’s normal to pivot once you’re into the project. For example:
You might plan a BRRRR in Bloomington, but after the rehab, realize that market demand makes a quick sale more profitable.
Or perhaps you bought with plans to flip in Eden Prairie, but the market cools. Renting and refinancing into a low-prepay DSCR loan gives you time to wait for better sales conditions.
That’s why we emphasize picking properties with dual exit strategies — it gives you flexibility and helps manage risk.
Our Minnesota Hard Money Loan Program offers flexible, performance-driven financing to support your real estate investments across the Twin Cities and beyond. Whether you're flipping a house in Edina or renovating a triplex in Moorhead, our loan terms are designed to accommodate your needs.
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 |
Our mission is to help you build long-term wealth through smart real estate investing in Minnesota. That means our top priority is helping you manage risk effectively. With fewer than 0.5% of our loans ever requiring foreclosure, our track record is a testament to our rigorous standards and investor-first approach.
In cities like Burnsville, Maplewood, and Bemidji, less experienced borrowers can sometimes take on high-risk rehab projects without realizing the hidden challenges. These "heavy" or "extensive" rehabs often encounter setbacks, unexpected costs, or unfavorable market shifts — even seasoned investors in Minnesota markets like Duluth or Rochester can run into issues during periods of economic uncertainty.
That’s why we function not just as your capital provider, but as your deal partner — helping you analyze risk and structure a winning strategy. We’ve created a structured rehab scope classification system, and your eligibility for certain loan amounts is based on this system, along with your experience.
Your initial advance is based on both borrower-specific and deal-specific criteria. If you're investing in Minneapolis or a rural part of southern Minnesota, we assess your track record to determine how much of the purchase price we’ll cover.
Here’s what we evaluate:
Number of investment properties owned in the past 24 months
Number of comparable verified rehab projects completed in the past 5 years
Minimum credit score of 680 (720+ preferred)
Professional qualifications (we offer increased leverage to Realtors, General Contractors, and Licensed Engineers)
If the purchase price exceeds the appraised As Is value, we’ll base our advance on the valuation, not the contract.
Exit strategy affects advance limits too. For a sale exit:
For a refinance exit (or if your flip scenario doesn’t qualify for your preferred amount):
Rural properties (such as those in Northern Minnesota) require a minimum Tier 3 experience and will receive a limited advance.
Tier | Verifiable experience |
---|---|
1 | 0 |
2 | 1 to 2 |
3 | 3 to 4 |
4 | 5 to 9 |
5 | 10+ |
Tier | Initial advance (% of purchase price) |
---|---|
1 | 80%* |
2 | 85% |
3 | 85% |
4 | 90% |
5 | 90% |
(*Exception: 85% available for Tier 1 borrowers with excellent credit and liquidity.)
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% (Tier 3+ required) |
Rehab Scope | Definition |
---|---|
Light | Rehab budget is less than 25% of purchase price |
Moderate | Rehab budget is 25% to 49.99% of purchase price |
Heavy | Rehab budget is 50% to 99.99% of purchase price |
Extensive | Rehab budget is 100%+ of purchase price — additions, expansions, ADUs, or lopsided deals* |
(*“Lopsided” means the As Is value or purchase price is less than the rehab budget.)
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 |
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% |
Tier | 1 | 2 | 3 | 4 | 5 |
---|---|---|---|---|---|
Experience | 0 | 1–2 | 3–4 | 5–9 | 10+ |
Light | N/A | N/A | N/A | N/A | N/A |
Moderate | Ineligible | N/A | N/A | N/A | N/A |
Heavy | Ineligible | N/A | N/A | N/A | N/A |
Extensive | Ineligible | Ineligible | 85% | 90% | 90% |
An LTFC of 85% means that for high-risk projects (i.e. when the rehab budget is higher than the purchase price), we’ll cover 85% of the project cost and the borrower contributes 15%.
Purchase price: $100,000
Tier: 1 (no rehab experience)
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
Purchase price: $100,000
Tier: 1 (no rehab experience)
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
Purchase price: $100,000
Tier: 4 (5 verifiable rehab projects completed)
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 scenario is quite common for experienced Minnesota investors operating in higher-demand neighborhoods in Minneapolis, Minnetonka, or Woodbury, where solid ARV projections and smooth rehabs are the norm.
While we typically structure our loans around your cost basis (purchase price + rehab costs), there are Minnesota-specific situations — particularly with long-held rentals in cities like Bloomington or Duluth — where the As Is value exceeds the cost basis.
If you're looking to refinance and the property meets certain conditions, we may allow the initial advance to be based on the As Is value. Here’s what we require:
Property must be habitable (C4 condition or better)
Seasoning of 3+ years (i.e., you've owned the property for at least three years)
No default interest, extensions, or late fees on payoff statement
Minimum credit score: 680
Experience Tier: 3 or higher (4+ verifiable rehabs)
Strong neighborhood comps to justify the As Is value
Clear and supportive investment story (e.g., unit was rented for 3 years, tenant moved out, now needs renovation for resale)
This scenario is ideal for seasoned Minnesota landlords with properties in stable markets like Eagan or Plymouth who are preparing their rentals for resale or refinancing.
If you’re purchasing a property via a wholesaler in Minnesota — a common approach in suburban markets like Maplewood or Inver Grove Heights — we’ll consider including the assignment fee in your value basis for the initial advance. However, we enforce specific guidelines:
Example:
A-B Contract (seller to wholesaler): $100,000
B-C Contract (assignment): $25,000
As Is Value: $125,000
Value basis for initial advance: $120,000
Wholesaler Transaction Guidelines:
We include the assignment fee or double-close markup in your cost basis up to 20% of the A-B price.
If the property was listed on the MLS, we may exclude the fee from financing.
Full contract chain (A-B and B-C) is required, along with the wholesaler's operating agreement.
Finder’s fees and referral fees are not eligible for financing.
Transaction must be arm’s length.
The construction holdback is the part of your loan set aside for the rehab phase and disbursed through draws as you complete the work. For example, if you’re flipping a fourplex in Saint Cloud or rehabbing a lakeside cabin near Brainerd, you’ll be reimbursed for progress based on your submitted scope of work.
If you prefer to self-fund the renovation and want to avoid a holdback altogether, you can opt out — particularly useful for investors with strong liquidity.
For loan amounts above $100,000, you’ll only pay interest on drawn funds (as disbursed).
Criteria | Draw Processing 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 | 50% (receipt or invoice required) |
Draw inspection | App-based (self-serve) |
Draw turnaround | 0 to 2 business days |
Draw fee | $270 |
Wire fee | $30 |
This streamlined process is ideal for Minnesota investors who want quick access to funds to keep their projects moving on schedule.
Every hard money loan in Minnesota requires a valuation. Depending on the property type and scenario, we may require a third-party interior appraisal, exterior appraisal, or an in-house valuation — particularly for properties in core markets like Minneapolis, Saint Paul, or Rochester.
Criteria | Eligibility requirement |
---|---|
Property type | Single family, Duplex, Triplex, Quadplex |
Tier | 4 or higher |
Credit score | 720+ |
Rural | No |
New market | No |
LTARV | 70% maximum |
We may still require an exterior or interior appraisal at our discretion, even if you meet these in-house valuation criteria.
Allowed in situations such as:
REO sale
Foreclosure auction
Sheriff’s sale
Online auction
Bankruptcy sale
Appraisals must be dated within 120 days of closing. If dated between 120 and 179 days, a recertification is required.
All other scenarios will require a full interior appraisal with specific form requirements:
Property type | Appraisal forms |
---|---|
Single family | 1004 + 1007 ARV with As Is value included (non-gridded) |
2-4 Unit | 1025 + 216 ARV with As Is value included (non-gridded) |
Condo | 1073 + 1007 ARV with As Is value included (non-gridded) |
We handle appraisal ordering via our preferred AMC and will provide the invoice link. The loan process will be paused if the invoice isn’t paid.
If you've already had an appraisal ordered through a licensed AMC (within 180 days), we can transfer it, provided you submit:
A signed transfer letter certifying AIR compliance
The PDF and XML of the report
The appraisal invoice marked as paid
In Minnesota, if your property is already in strong shape — with no deferred maintenance and a condition rating of C4 or better — we can fund up to 75% of the current As Is value. This is what we refer to as a stabilized hard money loan, ideal for properties in turnkey condition, such as those ready to rent or list on the market immediately.
This option is especially beneficial for investors holding recently renovated units in cities like Richfield or Golden Valley who want quick access to liquidity or need bridge financing.
Criteria | Guideline |
---|---|
LTV (maximum) | Tier 1: 70% Tier 2: 70% Tier 3: 75% Tier 4: 75% Tier 5: 75% |
LTFC (maximum) | Tier 1: 80% Tier 2: 80% Tier 3: 90% Tier 4: 90% Tier 5: 90% |
Appraisal condition rating | C1, C2, C3, or C4 |
Loan Term (maximum) | 12 months |
We fund a wide variety of non-owner-occupied residential investment properties across Minnesota, from suburban duplexes to urban fourplexes. Here are the essential program criteria:
Criteria | Details |
---|---|
Loan Amount | $25,000 to $2,000,000* |
Units per Property | 1 – 4 |
Eligible Property Types | Non-owner occupied 1‑4 unit residential Single family residences, 2‑4 unit multifamily Condominiums, Townhomes, Planned Unit Developments |
Property Minimum Size | Single Family: ≥700 SQFT Condo and 2‑4 Unit: ≥500 SQFT 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 purchase price under $100K |
Loan Term | 12 months standard; 18–24 months available for certain projects |
Extensions | Up to 50% of original term (fee applies) |
Points | 1.5 to 2 points ($2,000 minimum) |
Prepayment Penalty | None. No minimum interest earned. |
Occupancy | Non-owner occupied – business purpose only |
Transaction Types | Arms-length purchase, refinance |
Geographic Region | All US states except AK, AZ, HI, MN, ND, NV, OR, SD, UT, VT |
Amortization | Interest-only with balloon payment at maturity |
Interest Accrual Method | Loan Amount < $100K: Full Boat Loan Amount ≥ $100K: As Disbursed |
Note: While Minnesota is currently a referral state for us (see geographic restrictions above), we help investors secure funding through licensed capital providers and offer rate shopping services for hard money loan Minnesota requests.
Hard money loans are designed to be short-term solutions — typically 12 to 24 months. Most Minnesota borrowers repay their loans well before maturity. However, life happens — delays, unexpected costs, or shifting market conditions may cause you to need more time.
We recommend avoiding extensions whenever possible because:
Extension fees apply
Interest continues to accrue
Risk of foreclosure increases if the loan is unpaid after the extension limit
To help you avoid these pitfalls, we encourage you to steer clear of:
Hiring underqualified contractors
Taking on large rehab scopes beyond your experience
Investing in markets with slow permitting (like certain areas of rural Minnesota)
Properties with tenant access issues or leasehold restrictions
Projects without flexible exit strategies
Being proactive in managing these risks will help keep your loan on schedule and profitable.
Initial Loan Term | Max Extension |
---|---|
12 months | 6 months |
18 months | 9 months |
24 months | 12 months |
Extension Term | Fee |
---|---|
3 months (1st request) | 1% of the total loan amount |
3 months (2nd request) | 1.5% of the total loan amount |
6 months (1st request) | 2.5% of the total loan amount |
To extend your loan, your builder’s risk insurance policy must be active through the full extension period.
For the Minnesota hard money loan program, certain types of properties are not eligible for financing:
Mixed-use buildings
Multifamily buildings with 5+ units
Condotels and co-ops
Mobile or manufactured housing
Commercial real estate (retail, office, etc.)
Cabins or log homes
Properties with oil or gas leases
Active farms, orchards, or ranches
Vacation or seasonal rental homes
Luxury or exotic properties
Properties accessible only by dirt roads or unpaved terrain
These exclusions help us maintain a low default rate and better manage project risk, especially in rural areas or non-standard asset types.
In some cases, OfferMarket offers exceptions to standard guidelines — particularly relevant for experienced Minnesota investors working within unique project constraints. These include:
Guarantor credit score between 660 – 679
Leasehold properties (ground rent)
Smaller single-family homes (500 to 699 sq ft)
2–4 unit properties with a unit as small as 400–499 sq ft
Initial advance based on As Is value exceeding cost basis
Non–arm’s length transactions
Financed interest payments
Each of these situations is assessed case-by-case, and approval is at the discretion of our underwriting team.
To qualify for a Minnesota hard money loan, you must meet specific eligibility criteria. Here’s a complete breakdown of the borrower and guarantor requirements:
Item | Requirements / Eligibility |
---|---|
Borrowing Entities | LLC or Corporation (nonprofits are not eligible) |
Eligible Borrowers | U.S. Citizens, Permanent Residents, and qualifying Foreign Nationals |
Foreign Nationals | Valid passport + U.S. Visa (excluding travel/student visas if not on Visa Waiver Program); U.S. FICO required if serving as guarantor |
Credit Requirements | Minimum FICO: 680 (660–679 on exception); Tri-Merge Credit Report (≤120 days old); additional reserves required if <5 tradelines |
Liquidity Requirements | Guarantors must show minimum of cash to close + 25% of rehab budget in liquid assets |
Eligible Liquid Assets | Personal or business bank accounts, brokerage accounts, 401(k)/IRA (50% value applied) |
Verification | 2 most recent statements, no seasoning for new accounts, LOE for large deposits |
Guaranty Structure | Purchase: ≥51% of entity must guarantee Cash-out refinance: 100% must guarantee Full recourse required |
Net Worth | Combined guarantor net worth must be ≥50% of the loan amount |
To safeguard your financial position and ensure you’re well-prepared for project execution, we verify that you — or one or more guarantors — have enough liquid assets to meet:
Your estimated cash to close, plus
At least 25% of your rehab budget
These liquidity requirements apply across the board, from urban Minneapolis duplex rehabs to rural Minnesota fix-and-flips.
Eligible liquid assets include:
Bank accounts in personal name
Bank accounts in the borrowing entity’s name
Bank accounts in other business entities (requires operating agreement)
Brokerage accounts in personal or entity name
Retirement accounts (IRAs, 401(k)s — subject to a 50% haircut)
Verification process:
Provide two (2) most recent account statements
No seasoning required for newly opened accounts
For large deposits, submit a brief Letter of Explanation (LOE)
You are not required to move funds around or maintain a business bank account — though we recommend it as a best practice for accounting and risk management. The key is simply having verifiable access to liquid capital.
We use the following credit analysis guidelines to determine eligibility and reserve requirements:
For 3 credit scores, we use the middle score
For 2 scores, we use the lower
No mortgage tradelines or <5 tradelines: 6 months of reserves required
Bankruptcy must be discharged 4+ years prior to closing
Foreclosure must be completed 4+ years prior
For bankruptcy/foreclosure between 4–7 years, a minimum of 3 months reserves is required
Recent mortgage late payments: LOE required; approval at loan committee’s discretion
Past due balances on any tradeline must be paid before funding
Involuntary liens or judgments (e.g., tax liens, child support) must be resolved pre-funding
Pending civil lawsuits: LOE required; subject to review
Pending or past criminal cases involving financial crime or serious/repeat offenses are not eligible
Interest reserves may be required depending on credit score and background. These reserves are applied to your monthly interest payments and held in escrow at closing. This ensures liquidity throughout your project and reduces the risk of default due to missed payments.
Interest Reserve | Scenario |
---|---|
0 month | Lender discretion |
1 month | Guarantor FICO ≥ 700 |
3 months | Guarantor FICO 660–699 |
6 months | Guarantor FICO 660–699 and/or adverse credit/background item |
To help Minnesota investors maintain liquidity — especially during intensive rehab phases — you may qualify for financed interest payments. This means instead of paying interest monthly, the accrued interest is rolled into your final payoff amount.
Example:
Loan amount: $100,000
Interest rate: 12%
Loan held for: 9 months
Accrued interest: $9,000
Payoff total:
Principal: $100,000
Interest: $9,000
This structure is ideal for borrowers who prefer to focus on renovations or cash-flow strategy during the project and repay interest at exit.
When sourcing properties for your Minnesota real estate projects — whether it's a classic four-square in Saint Paul or a single-family in Blaine — it’s important to follow OfferMarket’s submission and documentation standards. This ensures fast and seamless funding.
Key Points:
If your deal is in a new market (e.g., first time investing in Duluth), submit a General Contractor agreement or LOE explaining why a GC isn’t required.
For wholesale transactions, previous price increases or non-arm’s length transactions require additional documentation and internal review.
For condo conversions or projects needing structural work, submit engineering or architectural documentation (or permits, where applicable).
All submissions must include:
Executed purchase contract
Settlement statement or payoff letter (for refinance)
Rehab track record
Operating agreements or formation documents
Being prepared with these documents will keep your loan moving swiftly through our underwriting system.
Real estate investors in Minnesota know that property protection is non-negotiable. Whether you’re renovating a lakeside property in Brainerd or a duplex in Richfield, you need comprehensive coverage.
This includes Builder’s Risk Insurance, which protects both your structure and liability exposure during construction or vacancy.
Coverage Type | Limit | Required |
---|---|---|
Dwelling | Replacement Cost or Loan Amount (no coinsurance) | Yes |
Liability | $1M per occurrence / $2M annual aggregate | Yes |
Builders Risk | Included | Yes |
Flood | Greater of $250,000 or loan balance | Only if in FEMA-designated Special Flood Hazard Area |
Coverage Item | Requirement |
---|---|
AM Best Rating | A- VIII or better |
Policy Type | Special Form |
Deductible | $1,000 to $5,000 |
Lender's Designation | Mortgagee and Additional Insured |
Exclusions | No exclusion for windstorm, hail, or named storms |
Cancellation Notice | 30-day notice required |
💡 Pro tip: After acquiring a Minnesota property, immediately install smoke detectors, secure entry locks, and set up security cameras. This ensures compliance with insurance terms and protects your investment from preventable loss.
We fund in nearly every U.S. state, including Minnesota. In certain states (like MN), we operate as a referral and rate-shopping service, matching you with licensed local capital providers.
Your OfferMarket membership is still free, and we provide unmatched value through transparent rates, underwritten quotes, and fast loan processing.
Absolutely. It’s common for active Minnesota investors to have multiple projects across cities like Minneapolis, Brooklyn Park, and Eden Prairie. While we support scale, we also help manage your liquidity and execution pace to prevent overextension.
Yes. All hard money loans are business-purpose loans and are issued to entities (LLCs, corporations). These are treated as commercial loans, not consumer financing.
The minimum loan amount is $25,000.
We fund non-owner occupied 1–4 unit residential properties:
Single-family homes
Townhomes
Duplexes, Triplexes, Quadplexes
Warrantable condominiums
5+ unit multifamily and mixed-use properties are not eligible in this program but may be financed through other OfferMarket channels.
LTV = Loan ÷ As Is Value
LTARV = (Initial Advance + Construction Holdback) ÷ After Repair Value (ARV)
We base the initial advance on the lower of the As Is value or the contract purchase price. For refinances, we compare the As Is value to your prior closing price plus documented improvements.
We require a minimum FICO of 680. Scores between 660–679 may be accepted on an exception basis. Only those guaranteeing the loan are evaluated.
Not at all. Whether you’re purchasing your first flip in Coon Rapids or your 20th rental in Rochester, we offer experience-based tiering that adjusts leverage and eligibility based on verified track record.
No. Since wholesalers are not responsible for project completion, wholesaling does not count toward your experience tier.
At OfferMarket, we’ve streamlined the documentation process to support real estate investors across Minnesota — from first-time flippers in St. Cloud to seasoned BRRRR buyers in Rochester. Our Loan File system makes it easy to submit, manage, and reuse documents for future transactions.
Once submitted, your documents are securely stored and reusable across multiple loan requests.
Loan File Section | Documentation |
---|---|
Purchase Contract | Fully executed by buyer and seller |
Credit Report | Soft tri-merge credit report for each guarantor |
Background Report | Required for each guarantor |
Track Record | Rehab project history for each guarantor |
ID Verification | Government-issued ID (driver’s license, passport, or green card) |
Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9 |
Scope of Work | Detailed rehab budget to determine ARV |
Appraisal Report | Ordered through OfferMarket; invoice must be paid |
Bank Statements | 2 most recent statements per guarantor (can be personal, business, or retirement) |
Letter of Explanation | If requested (e.g. for large deposits or credit issues) |
Loan File Section | Documentation |
---|---|
Settlement Statement | From original purchase; fully executed |
Credit Report | Soft tri-merge credit report for each guarantor |
Background Report | Required for each guarantor |
Track Record | Rehab project history for each guarantor |
ID Verification | Government-issued ID (driver’s license, passport, or green card) |
Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9 |
Sunk Costs | Line items for expenses already incurred |
Scope of Work | Updated rehab budget for remaining work and ARV projection |
Appraisal Report | Ordered via OfferMarket; invoice payment required |
Bank Statements | 2 most recent statements per guarantor (personal, business, or retirement accounts accepted) |
Letter of Explanation | If requested by underwriting |
Yes. For projects over $1M, especially in high-value markets like Edina or Wayzata, we require:
Criteria | Explanation |
---|---|
Experience | Minimum Tier 3 (3+ similar projects) |
Market Liquidity | At least 3 MLS comps within 2 miles, sold within 6 months |
Credit Score | 680+, with 5+ tradelines (24-month history) |
Rural Designation | Not eligible if property is CFPB/USDA designated rural |
Track Record | Verified documentation of past deals |
Term | Definition |
---|---|
ADU | Accessory Dwelling Unit – secondary residential unit on the same parcel |
Arms-length | Deal between unrelated parties at fair market value |
Non-arms-length | Transaction involving related parties (personal or business ties) |
Initial Advance | Portion of loan for purchase price; wired at closing |
Construction Holdback | Rehab funds disbursed in draws as work progresses |
Interest Reserves | Pre-collected interest funds held in escrow, applied toward payments |
LOE | Letter of Explanation (e.g. large deposits, credit issues) |
LTC | Loan to Cost (loan ÷ purchase + rehab budget) |
LTFC | Loan to Full Cost (loan ÷ total project cost) |
LTV | Loan to Value (loan ÷ As Is property value) |
LTARV / ARLTV | Loan to After Repair Value (loan ÷ projected ARV) |
Full Boat Interest | Interest charged on total loan from day 1 |
As Disbursed Interest | Interest charged only on drawn loan amount |
Lopsided Deal | Rehab budget exceeds property value or purchase price |
GC Agreement | Contract with general contractor outlining scope and payment |
DSCR | Debt Service Coverage Ratio = Rent ÷ PITIA (Principal + Interest + Taxes + Insurance + Association fees) |
OfferMarket Capital LLC is your go-to partner for hard money loans in Minnesota — whether you’re targeting cash-flow rentals in Saint Paul or value-add flips in the suburbs.
By becoming a free member of OfferMarket, you’ll unlock:
💰 Private lending ☂️ Insurance rate shopping 🏚️ Off market properties 💡 Market insights