Hard Money Loan Mississippi

Last updated: May 13, 2025

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Our Mississippi Hard Money Loan program gives you a dependable and fast financing solution tailored to 1-4 unit residential investment properties across the state. Whether your exit plan is to flip for a gain or refinance into a long-term DSCR loan, we’re ready to be your lending partner.

Let’s walk through what the OfferMarket Mississippi Hard Money Loan Program has to offer.

What is a hard money loan?

A hard money loan is a short-term asset-based loan that uses real property as collateral — specifically 1 to 4 unit residential real estate. Investors in Mississippi often use this financing to purchase, refinance, or renovate properties quickly.

In the Magnolia State, these loans are commonly used by investors in areas like Southaven, Jackson, and Hattiesburg where competitive bidding and short timelines are common. These loans are often referred to as “fix and flip” or “bridge” loans — terms that real estate investors and private lenders use interchangeably.

Hard money loan scenarios

Across Mississippi, real estate investors tap into hard money loans in the following scenarios:

• Buying and rehabbing distressed properties: Maybe you’re eyeing a worn-down home in Meridian and need capital for both acquisition and renovation — a hard money loan allows you to preserve your liquidity.

• Refinancing a cash purchase and funding the rehab: If you snagged a property in Biloxi with cash for speed, you can refinance with a hard money loan to fund the renovation phase.

• Paying off an existing loan and finishing renovations: Say you already financed a property in Tupelo but need more time and funding to complete the project — our hard money loan can help you transition.

• Purchasing without plans to rehab: In Mississippi, below-market opportunities pop up in cities like Olive Branch — if you plan to resell them as-is, this loan supports that strategy.

• Cashing out of a previous purchase (no rehab): Let’s say you grabbed a discounted deal in Laurel and want to use the equity to fund another project — this structure works well.

• Refinancing post-renovation for more time: After finishing your work on a property in Vicksburg, you might need additional time to sell or refi — a hard money loan extension buys you breathing room.

Hard Money Loan Program Guidelines

Here’s a detailed overview of our Mississippi hard money loan program:

Whether you're tackling a light rehab in Jackson’s Fondren district or a more extensive flip in a rural county, our program is engineered to fit the needs of Mississippi investors at every experience level.

Project Eligibility

Our mission is to help Mississippi real estate investors succeed while minimizing risk. Across all the loans we’ve issued nationwide, fewer than 0.5% have resulted in foreclosure — a record we’re proud of and committed to upholding in the Magnolia State.

That’s why we closely evaluate projects based on borrower experience and rehab scope.

Inexperienced borrowers who take on extensive renovations — like full-gut jobs in the Delta region — may be exposed to budget overruns, delays, and shifting market conditions. This is particularly true during periods of economic uncertainty or rising material costs.

At OfferMarket, we aren’t just lenders — we’re your strategic partners. That means helping you plan smart, avoid pitfalls, and scale safely.

To accomplish this, we use a structured classification system to evaluate the scope of your rehab project and determine eligibility.

Initial Advance

We calculate your initial advance based on a mix of borrower profile and deal specifics:

• Experience: Have you completed rehab projects in the past 5 years? How many properties have you owned in the past 2 years?

• Credit Score: The minimum is 680, but a score of 720+ unlocks more favorable leverage.

• Professional Status: Are you a licensed Realtor, General Contractor, or Professional Engineer in Mississippi? If so, you may qualify for increased leverage.

We base the initial advance on either the contract purchase price or the As Is value from appraisal — whichever is lower. So, if your property in Oxford appraises lower than the purchase price, your loan will be based on the appraised value.

Additionally:

• If your exit strategy is to sell the property, you’ll need at least a 30% projected gross margin and $15,000 profit.

• If you plan to refi into a DSCR loan, your post-repair DSCR must be at least 1.1.

• If the property is rural, your initial advance will be limited and you’ll need a minimum experience level of 3.

These rules help ensure you’re not overleveraged — especially critical when working in more volatile markets like rural Mississippi or areas with lower property turnover.

Experience-based Tiers

To tailor your leverage, we evaluate your verifiable real estate investing experience — especially prior projects in Mississippi or similar markets.

Initial Advance by Tier

*Borrowers in Mississippi with Tier 1 status may qualify for 85% with excellent credit and strong liquidity.

Adjustments to Initial Advance

Rehab Scope Classification

In Mississippi, “extensive” projects are common in undervalued rural areas — proceed with caution.

Rehab Scope Eligibility

Your rehab scope eligibility is based on your experience tier and the rehab scope classification. In line with our focus on proper risk management, we advise our clients — especially first-time Mississippi investors — to focus on projects with lower rehab scopes. These “cosmetic” renovations are quicker to complete and less exposed to market shifts.

For example, if you're just starting out and looking to flip a house in Southaven or Laurel, focus on light rehab opportunities. Mississippi’s permitting timelines, contractor availability, and small-town zoning delays make heavier rehab risky for inexperienced investors. As your track record grows, you’ll unlock eligibility for deeper, more ambitious renovations across the state.

LTARV Limits

Your maximum Loan-To-After-Repair Value (LTARV) — sometimes called ARLTV — is determined by both your experience tier and the scope of your rehab project. In Mississippi, where market liquidity can vary widely from DeSoto County to the Delta, these thresholds help manage your exposure and keep your deals conservative.

These LTARV caps ensure you're not overleveraged, particularly in regions of Mississippi where ARV comps are thinner or slower to move.

LTFC Limits

Loan-To-Full-Cost (LTFC) becomes especially relevant in “lopsided” deals — where the rehab budget exceeds the purchase price or the As Is value. These limits ensure that you, as the borrower, have sufficient capital at stake to reduce default risk.

This is especially important in low-priced markets like parts of the Mississippi Delta, where properties may sell for under $40,000 and require six-figure rehabs. In such cases, our LTFC framework ensures the deal structure is sustainable for all parties involved.

Example: No Experience

• Purchase price: $100,000

• Tier: 1

• 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: Full boat

Example: No Experience, Excellent Credit

• Purchase price: $100,000

• Tier: 1

• Credit score: 750

• Rehab budget: $24,000

• ARV: $150,000

• Initial advance: $80,000 (80%)

• Construction holdback: $24,000

• Total loan: $104,000

• LTARV: 69.3%

• LTFC: 83.9%

• Interest: As disbursed

Example: 5 Experience

• Purchase price: $100,000

• Tier: 4

• Credit score: 750

• Rehab budget: $20,000

• ARV: $150,000

• Initial advance: $90,000 (90%)

• Construction holdback: $20,000

• Total loan: $110,000

• LTARV: 73.3%

• LTFC: 91.6%

• Interest: As disbursed

Refinance Using As Is Value

Sometimes, your Mississippi rental might appreciate beyond its original cost basis. If you're looking to refinance against a higher As Is value, here’s what we require:

• Property must be habitable (C4 or better)

• Seasoned for at least 3 years

• 680+ credit score

• Tier 3+ (minimum 4 similar completed rehabs)

• Strong As Is comp support (especially critical in low-turnover rural areas)

• Clean payoff statement (no excessive fees or penalties)

Wholesaler Transactions

If you acquired your property through a wholesaler in Mississippi, we can still fund it — with limits:

• Up to 20% markup allowed between seller and buyer (A-B to B-C)

• Must be arm’s length

• Must provide both contracts and wholesaler’s operating agreement

• Assignment fee above 20% will not be financed

Example:

• A-B Contract: $100K

• B-C Contract: $125K

• Max value basis: $120K

MLS-listed wholesales may be excluded from financing.

Construction Holdback

This component is designed for verified reimbursement draws. Ideal for Mississippi investors funding rehab stages over time.

Appraisal and In-house Valuation

A valuation is required for every hard money loan. Depending on the scenario and borrower profile, we use one of three options:

In-house Valuation

OfferMarket reserves the right to override in-house valuations with full appraisals as needed.

Exterior Appraisal

Exterior-only appraisals are acceptable for:

• REO purchases

• Foreclosure/sheriff sales

• Bankruptcy deals

• Online auctions

Valid for 120 days; if 120–179 days old, re-certification is required.

Interior Appraisal

All other scenarios require full interior appraisals:

Appraisals are ordered and managed via an AMC; borrower must pay invoice before loan moves forward.

Appraisal Transfer

You can transfer an existing appraisal if:

• It was ordered by an approved AMC

• It’s less than 180 days old

• It includes AIR compliance letter

• You provide the PDF, XML, and paid invoice

Scenario: Stabilized Hard Money Loan

If you're working with a rental-ready property in Mississippi — say a well-maintained unit in Madison or a recently updated duplex in Gulfport — and it has no deferred maintenance, we can fund based on the As Is value. This setup is known as a stabilized hard money loan.

This option is ideal for Mississippi investors who want fast access to liquidity without waiting for lengthy rehabs.

Key Loan Details

Extensions

Hard money loans are designed for short-term strategies — typically 12 to 24 months. While Mississippi investors can request an extension, it’s best to avoid this scenario due to added cost and risk.

Common causes for delay:

• Unreliable general contractors

• Overly aggressive rehab plans relative to your experience

• Local permitting issues (particularly in older cities like Vicksburg or Natchez)

• Tenant holdovers that require eviction

• Lack of dual exit strategy (no viable refinance or sale option)

Being proactive helps reduce the chance you’ll need an extension.

Extension Limits

Extension Terms and Fees

Extension Prerequisites

You must confirm that your builder’s risk insurance policy covers the full extension period.

Ineligible Property Types

We do not fund the following property types in Mississippi or any other state:

• Mixed use

• 5+ unit multifamily

• Condotels

• Co-ops

• Mobile/manufactured housing

• Commercial buildings

• Cabins / log homes

• Oil/gas lease properties

• Operating farms, ranches, or orchards

• Vacation or seasonal rentals

• Unique, exotic, or luxury properties

• Properties on unpaved or dirt roads

Exception Scenarios

We may approve the following on a case-by-case basis:

• Credit score 660–679

• Leasehold land (ground rent)

• Single family properties: 500–699 SqFt

• 2–4 unit properties: one or more units 400–499 SqFt

• As Is value-based funding higher than Cost Basis

• Non-arm’s length transactions

• Financed interest payments

Borrower and Guarantor Requirements

Liquidity verification

To protect your financial health and deal success, we verify liquidity for every Mississippi investor based on this formula:

Minimum verified liquidity = Estimated cash to close + 25% of rehab budget

We’ll collect two recent statements for each account. New accounts are fine — no seasoning required. Large deposits will require a brief letter of explanation (LOE).

You don’t need a business bank account, but it’s recommended for clean bookkeeping and tax purposes. Also, you are not required to move funds around after we verify them.

Credit and Background Items

We review your full financial profile to ensure project success:

• For 3 credit scores: we use the middle score

• For 2 scores: we use the lower score

• No mortgage tradelines = 6 months of interest reserves

• Fewer than 5 tradelines = 6 months of interest reserves

• Bankruptcy or foreclosure: must be at least 4 years old

• Late payments or unresolved balances: must be addressed before funding

• Judgments, tax liens, civil/criminal lawsuits: reviewed case by case

• Financial or violent crime: not eligible

Interest Reserves

Some Mississippi borrowers will have interest reserves withheld at closing — used to cover interest payments.

Financed Interest Payments

To help preserve your liquidity — especially during high-rehab periods — we allow financed interest payments in certain scenarios.

Example:

• Loan: $100,000

• Rate: 12%

• Hold time: 9 months

• Accrued interest: $9,000

Instead of making monthly interest payments, that $9,000 is added to your final payoff. It improves cash flow and shields your credit from strain.

Property Sourcing Guidelines

If you’re sourcing deals in Mississippi — from off-market sellers in Tupelo to courthouse auction properties in Yazoo City — it’s important to understand our documentation and eligibility process.

Key Points:

• New market transactions: Must include a General Contractor agreement or an LOE explaining why a GC isn’t necessary

• Wholesale deals or price run-ups: Require chain of title, contracts, and detailed cost basis breakdowns

• Condo conversions and structural rehabs: May require permits or letters from licensed professionals

• All deals must include:

  • Executed purchase contracts

  • Settlement statements

  • Payoff letters (for refis)

  • Track record and entity formation docs

Having clean documentation ensures your deal flows through underwriting without unnecessary delays.

Insurance Guidelines for Hard Money Loans

It’s essential to protect your Mississippi property — especially vacant or under-rehab assets — from physical damage and liability risk. We require all properties financed with hard money loans to carry Builders Risk Insurance, also called Fix and Flip Insurance.

Coverages and Limits

Coverage Details

💡 Mississippi tip: As soon as you take possession, install locks, smoke detectors, and security cameras. This helps ensure insurance compliance and reduces the chance of denied claims in case of an incident.

Frequently Asked Questions

What states does OfferMarket fund hard money loans?

OfferMarket funds hard money loans in nearly every U.S. state, including Mississippi. That means whether you're investing in a Jackson duplex, a Gulf Coast fixer-upper, or a rental property in Tupelo, you can access our program.

Note: In certain states — such as Arizona, Minnesota, Nevada, North Dakota, Oregon, South Dakota, Utah, and Vermont — where a state-issued NMLS license is required for business-purpose lending, or where OfferMarket does not directly originate loans, we operate as a rate shopping service. That means we will refer your deal to a licensed capital provider within our network.

In Mississippi, OfferMarket is fully able to offer its lending services directly.

Can I do more than one hard money loan at a time?

Yes, absolutely. It’s quite common for OfferMarket clients to have multiple hard money loans active at the same time. For example, a real estate investor in Mississippi may be renovating a property in Southaven while simultaneously acquiring another deal in Biloxi.

There is no formal limit to the number of concurrent loans. However, our top priority is always risk management — both for your safety and the strength of our lending platform. If we determine that taking on another loan may jeopardize your liquidity or your ability to manage existing projects, we will flag it and work collaboratively with you to either slow the pace or ensure adequate support is in place.

Our team actively monitors your deal flow, liquidity, and execution speed to help ensure that every project stays on track and you’re not stretched too thin.

Are hard money loans commercial?

Yes. All OfferMarket hard money loans are considered commercial loans because they are for business purposes. Even though the underlying collateral is 1–4 unit residential real estate, the loan is made to your business entity — such as an LLC or corporation — and not to you personally.

Because of this, hard money loans are not subject to consumer lending laws, TRID disclosures, or owner-occupant underwriting standards. They’re designed specifically for real estate investors like you, not homeowners looking for a primary residence mortgage.

In Mississippi, these loans are ideal for investors buying, flipping, or renting non-owner-occupied properties.

What is the minimum loan amount?

The minimum loan amount offered under the OfferMarket hard money loan program is $25,000.

This is particularly helpful for investors in Mississippi where property prices in smaller towns or rural counties can be significantly lower than in more urban markets. Whether you're picking up a house in Clarksdale for $35,000 or renovating a $60,000 duplex in Greenwood, you're still eligible to apply.

Which property types are eligible?

OfferMarket hard money loans are available for the following non-owner occupied property types:

• Single family residences (SFRs)

• Townhomes

• 2–4 unit multifamily properties

• Warrantable condominiums

• Planned Unit Developments (PUDs)

All properties must be residential and not occupied by the borrower. The program is designed for investment use only.

🛑 The following property types are not eligible under the hard money loan program:

• 5–9 unit residential multifamily properties (separate program available)

• 2–4 unit or 5–9 unit mixed use (separate program)

• 10+ unit multifamily (available via our commercial division)

• Condotels

• Co-ops

• Mobile or manufactured homes

• Commercial/retail buildings (strip malls, office buildings, warehouses, etc.)

• Unique/exotic properties, cabins, log homes

• Operating farms, ranches, orchards

• Properties with dirt or unpaved road access

• Vacation or seasonal rentals

How do you calculate Loan-to-Value (LTV)?

In hard money lending, OfferMarket uses both LTV and LTARV depending on the situation:

• LTV (Loan-To-Value) typically refers to the ratio of your loan amount to the As Is value of the property.

• LTARV (Loan-To-After-Repair-Value) — also called ARLTV — is calculated by dividing your total loan amount (initial advance + construction holdback) by the property’s projected after-repair value as determined by our appraisal or in-house valuation.

For purchase transactions:

Your initial advance is based on the lower of the purchase price or the As Is appraised value. This ensures you're not overleveraging on an overpriced asset.

For refinance transactions:

The same logic applies — we lend based on either your cost basis (purchase + improvements) or the As Is value, whichever is lower, unless special conditions apply.

What are the credit requirements?

To qualify for a Mississippi hard money loan, the minimum required FICO score is 680.

Borrowers with FICO scores between 660 and 679 may still be considered on an exception basis, but such approvals often come with stricter terms, such as higher interest reserves or lower leverage.

Important Notes:

• We require a tri-merge credit report (soft pull) that shows your full credit history across all three major bureaus.

• We evaluate the credit score of each guarantor in your borrowing entity. Members who are not guaranteeing the loan do not need to meet credit standards.

What are the experience requirements?

There is no experience requirement to qualify for a hard money loan.

That said, experience plays a big role in determining your leverage tier. OfferMarket uses a tiered system that adjusts your loan-to-value (LTV), loan-to-cost (LTC), and overall loan structure based on how many comparable rehab projects you’ve successfully completed over the past 5 years.

For example:

• A new investor flipping a property in Hattiesburg may qualify for 80% LTV, while…

• An experienced operator with 10+ successful rehabs in Mississippi may qualify for 90%+ LTV and 100% rehab financing

Once I complete the Track Record section, what happens?

Once you enter your track record into your Loan File, our underwriting team will:

• Research and verify each property listed

• Request supplemental documents, such as:

  • HUD-1/ALTA settlement statements

  • Operating agreements

  • Rehab budgets or scopes of work

This helps us validate your experience tier and determine the most favorable terms possible.

Does being a wholesaler count towards experience?

No. Wholesaling does not count toward your verifiable experience.

Even though you may have transacted dozens of properties as a wholesaler, OfferMarket defines experience as being financially responsible for the completion of a rehab project. In other words, you must have closed on the purchase and overseen the renovation — not simply assigned the contract.

What documentation is required?

Our Loan File system makes it easy for Mississippi real estate investors to upload, store, and reuse documents for faster approvals and repeat financing.

We break down documentation requirements into two main categories depending on the type of transaction: Purchase and Refinance.

Purchase Transaction Requirements

Refinance Transaction Requirements

Are there special requirements for loans over $1M?

Yes. For Mississippi hard money loans exceeding $1 million, we apply stricter underwriting guidelines to ensure project and market suitability:

These safeguards are in place to help you scale responsibly, particularly in Mississippi submarkets with less price velocity or thinner comp pools.

Glossary of Key Terms

Instant Hard Money Loan Quote

OfferMarket Capital LLC is a leading private lending partner for real estate investors in Mississippi and across the United States. We specialize in hard money loans and DSCR loans for 1–4 unit residential investment properties — including single family, duplex, triplex, and quadplex homes.

Our mission is simple:
Empower real estate investors to build long-term wealth safely and efficiently.

Thousands of investors rely on OfferMarket every month to power their deals with:

💰 Private lending
☂️ Insurance rate shopping
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