Hard Money Loan Missouri

Last updated: May 13, 2025

At OfferMarket, we’re dedicated to helping you grow your real estate portfolio across the Show-Me State. Whether you're working on a duplex in Kansas City, flipping a single-family home in St. Louis, or buying rentals in Springfield, our mission is to help you build long-term wealth through real estate.

To support your investment journey in Missouri, we’ve created an all-in-one platform:

💰 Private lending
☂️ Insurance rate shopping
🏚️ Off-market property opportunities

Our Missouri Hard Money Loan program delivers fast, reliable, and competitively priced financing for 1-4 unit residential investment properties. Whether your end goal is to flip the property or hold it as a long-term rental refinanced into a DSCR loan, we’d love to be your funding partner and help you succeed.

Let’s explore what makes the OfferMarket Missouri Hard Money Loan Program a smart choice.

What is a hard money loan?

A hard money loan is a short-term, asset-backed loan secured by residential investment real estate (1-4 units). These loans are ideal for purchasing, refinancing, or renovating properties with the goal of selling or holding them as rentals.

You might hear Missouri investors refer to them as “fix and flip loans” or “bridge loans.” These terms are used interchangeably by most local real estate professionals.

Common Use Cases for Hard Money Loans in Missouri

Real estate investors across Missouri turn to hard money loans in a range of scenarios:

• You’re buying a fixer-upper in Columbia and want to finance both the purchase and the renovation—without draining your own cash reserves.

• You closed quickly on a distressed property in Independence using cash and now want to refinance to fund the rehab.

• You have a rehab project in Joplin funded with a high-interest private loan and you need to refinance to complete the work and prepare for resale or refinancing.

• You’re purchasing a below-market value property in Cape Girardeau with no intent to renovate and plan to flip it “as is.”

• You bought a house in Jefferson City for cash and need to tap your equity for another investment opportunity—without rehabbing.

• You already renovated a property in Blue Springs and just need more time to sell or refi without additional improvements.

How It Works

Every hard money loan has two key pieces:

• Initial Advance – This is the portion of the loan that goes toward the purchase price and is wired directly to the title company at closing.
• Construction Holdback – This covers renovation expenses and is reimbursed to you through draw requests.

Our loans are tailored to your needs. Some Missouri investors only need an initial advance, while others may only want a construction holdback. Most utilize both to maximize leverage and preserve their own capital.

For example:

• Some flippers in St. Louis prefer using only the purchase advance and fund renovations out-of-pocket.

• Others in Kansas City may buy properties with cash and use our 100% rehab financing to complete the project.

Most Missouri investors either:

• Flip the property post-rehab, or

• Refinance it into a DSCR rental loan.

Many shift their strategy mid-project based on the local market. For example:

• You might buy a home in Springfield intending to BRRRR it, only to discover resale demand is stronger than expected—prompting a profitable flip.

• Conversely, a flip in Columbia may become a rental due to a slow market, and you refinance into a DSCR loan with favorable terms.

It’s wise to target deals with flexible exit strategies to lower your risk exposure.

Who Uses Hard Money Loans?

Hard money loans are a go-to financing tool for two core groups of Missouri investors:

• Fix and Flip Investors – These are the entrepreneurs actively flipping homes in cities like St. Louis, Kansas City, and Springfield.
• Buy and Hold Investors – Many use the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) to build long-term rental portfolios in growing towns such as Columbia, Lee’s Summit, and O’Fallon.

(*) Be sure to check out our Fix and Rent Bundle — a combined hard money loan for acquisition and rehab, followed by a discounted DSCR loan for the refinance phase.

Hybrid strategies are common. You might flip a house in Branson and hold your next one in St. Charles depending on the market conditions. Missouri investors benefit from being agile, and our financing helps them stay that way.

Missouri Hard Money Loan Program Guidelines

Project Eligibility

At OfferMarket, our goal is to be your trusted lending partner in Missouri. With a historical default rate under 0.5%, we take your success seriously.

Newer investors in Missouri—especially those eyeing full-gut rehabs or high-risk rural flips—should proceed with caution. These complex projects are more likely to face budget overruns, permit delays, or market shocks that derail even experienced developers.

Our role as your hard money lender is to be a proactive risk partner. We'll help you identify the right projects and set you up for success—not struggle. Below, we outline our rehab scope system and how it impacts loan eligibility.

Initial Advance

Your initial advance is determined by a mix of borrower- and deal-specific factors:

• Number of investment properties you’ve owned in the past 24 months

• Number of similar projects completed in the last 5 years

• Credit score (minimum of 680 preferred; 720+ is ideal)

We also offer higher leverage to professionals like Realtors, General Contractors, and Professional Engineers—especially those licensed in Missouri.

If your purchase price is higher than our appraised As Is value, we base your loan on the lower value.

Your chosen exit strategy also affects eligibility:

• If you plan to sell, we expect a minimum 30% projected margin and $15,000 profit

• If you’re refinancing into a rental loan, your post-rehab DSCR should be at least 1.1

Note: Missouri rural properties come with stricter limits—minimum experience level of 3 and reduced loan advance.

Experience-Based Tiers

Initial Advance by Tier

(*) Borrowers in Missouri with excellent credit and strong liquidity may qualify for 85% even at Tier 1.

Adjustments to Initial Advance

These adjustments apply to Missouri investors depending on borrower profile and deal structure:

If you're working on a rural project in places like southern Missouri or the Ozarks, these adjustments ensure risk is kept in check. Similarly, licensed professionals in St. Louis or Kansas City can qualify for leverage boosts.

Rehab Scope Classification

Understanding your renovation scope is key to eligibility. Here’s how we classify projects for Missouri properties:

Missouri flippers often tackle light to moderate rehabs in places like Columbia and Independence, where timelines are tight and quick turnovers are ideal.

Rehab Scope Eligibility

Your eligibility for various rehab scopes in Missouri depends on your experience tier. In line with our approach to responsible lending and risk management, we urge Missouri investors—especially those just starting out in areas like Springfield, Columbia, and Blue Springs—to focus on cosmetic rehabs that are quick to complete.

If you're a first-time investor in Missouri and eyeing a property with major structural issues in a rural town like Lebanon or Farmington, it’s likely to fall outside the eligible range. Stick with manageable projects to stay on solid ground.

LTARV Limits

We cap your loan-to-after-repair value based on your experience and rehab complexity. These limits ensure your leverage remains in a healthy range whether you're investing in urban centers like St. Louis or smaller markets like Sedalia.

These LTARV limits are especially helpful when evaluating flips in fluctuating neighborhoods or transitioning zip codes, such as North St. Louis or emerging suburbs outside Kansas City.

LTFC Limits

When the rehab budget meets or exceeds the purchase price, we define the deal as "extensive." These high-execution-risk projects—such as full gut rehabs in Kansas City or additions in rural areas of Missouri—are subject to loan-to-full-cost (LTFC) limits. This helps protect your liquidity while ensuring aligned incentives.

Example: No Experience

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

Example: No Experience, Excellent Credit

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

Example: 5 Experience

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

Refinance Using As Is Value Instead of Cost Basis for Initial Advance

Our standard approach to underwriting in Missouri and beyond is to lend within your cost basis—the sum of your purchase price and any capital already spent (sunk costs). This ensures that you, the investor, retain equity in the project and limits over-leveraging.

However, for seasoned Missouri investors with properties that have appreciated over time, we may allow leverage based on As Is value under specific conditions.

Refinance Scenario Requirements

• Property condition: Must be habitable and meet at least C4 appraisal condition

• Seasoning: Property must be owned for at least 3 years

• Payoff statement: No late fees, extension fees, or default interest charges from your previous lender

• Credit score: Minimum 680

• Experience tier: Tier 3 or higher (minimum of 4 comparable completed projects)

• Valuation support: Comps in the area must justify current As Is value over cost basis

• Use case: Valid scenario such as previously rented property in St. Louis that is now being vacated for rehab and sale

Transactions Involving Wholesalers and Price Run-Ups

Missouri’s real estate market includes many investor-friendly opportunities through wholesalers. If your deal involves a wholesale assignment fee or double-close markup, OfferMarket may allow the marked-up value to be included in the cost basis for calculating your loan—with limitations.

Example:

• A-B Contract (original seller and wholesaler): $100,000

• B-C Contract (you and wholesaler): $125,000

• As Is value: $125,000

• Value basis allowed: $120,000 (max 20% price run-up over A-B price)

If your deal involves a higher markup, you’ll be responsible for covering the overage beyond the 20% allowance.

Wholesaler Transaction Guidelines

This policy is especially relevant in investor-heavy areas of Missouri such as St. Louis County, Jackson County, and rapidly flipping zip codes in Columbia and Springfield.

Construction Holdback

The construction holdback portion of your Missouri hard money loan is disbursed through a draw reimbursement process. This means you’ll receive funds based on verified completion milestones for the rehab work you outline in your scope.

If you have enough cash on hand to fund renovations yourself and prefer not to use a construction holdback, you can opt out of it entirely. Many experienced Missouri investors—especially those operating in lower-cost cities like St. Joseph or Cape Girardeau—choose to float their own construction and use our loan for acquisition only.

For loans of $100,000 or more, you won’t be charged interest on undrawn holdback funds. Instead, interest accrues as disbursed, helping preserve your liquidity.

OfferMarket’s Missouri clients enjoy fast draw processing and a streamlined experience through our mobile app. Whether you’re working on a townhome rehab in Kansas City or a duplex conversion in Columbia, our process is designed to keep your project moving.

Appraisal and In-House Valuation

Every OfferMarket hard money loan in Missouri requires a valuation. Depending on the nature of your deal, we’ll order either an in-house valuation, a third-party exterior appraisal, or a full interior appraisal.

In-House Valuation

You may qualify for our internal valuation process if your deal meets the following criteria:

This is a popular option for experienced investors working in Missouri’s core markets such as St. Louis, Kansas City, and Columbia, where pricing transparency is stronger and comps are more reliable.

OfferMarket reserves the right to require an exterior or interior appraisal at our discretion.

Exterior Appraisal

We accept exterior-only appraisals for certain types of discounted property acquisitions, such as:

• REO sales

• Foreclosure or sheriff’s auctions

• Online auctions

• Bankruptcy proceedings

Exterior appraisals must be dated within 120 days of settlement. If more than 120 days but less than 180, a recertification is required.

Interior Appraisal

Any scenario that doesn’t qualify for in-house or exterior appraisal requires a full interior appraisal. This is standard in most Missouri acquisitions where the property is being actively rehabbed, especially in higher-density markets like St. Charles or Independence.

OfferMarket handles ordering of all appraisals through approved appraisal management companies (AMCs). You’ll receive an invoice and your loan will be placed on hold until that invoice is paid.

Appraisal Transfer

If you’ve already commissioned an appraisal through another lender or service, OfferMarket may allow you to transfer it, provided it meets the following criteria:

• Appraisal was ordered via a recognized Appraisal Management Company (AMC)

• Report is less than 180 days old at loan closing

  • Recertification required if dated between 120–179 days before closing

• The transferring lender provides:

  • Signed transfer letter certifying compliance with Appraiser Independence Requirements (AIR)

  • PDF of the full appraisal report

  • XML version of the appraisal

  • Invoice showing appraisal has been paid

Appraisal transfers are frequently used by experienced Missouri investors who are shopping rates or comparing lenders across projects in multiple cities like Kansas City, St. Louis, and Springfield.

Scenario: Stabilized Hard Money Loan

In certain Missouri transactions, your property may already be rent-ready with no deferred maintenance. If your appraisal condition rating is C4 or better, we can fund up to 75% of the As Is value — eliminating the need for a renovation budget.

We refer to this as a stabilized hard money loan, ideal for rental-ready homes in places like Florissant, Raytown, or Jefferson City.

Key Loan Details

The following criteria apply across all Missouri hard money loan transactions:

Extensions

Hard money loans are designed to be short-term, typically repaid within 12 months. Extensions are available but should be considered a fallback — not the norm. Missouri investors should plan their projects carefully to avoid unnecessary extensions, which can lead to additional interest charges and increase the risk of foreclosure if the project timeline exceeds allowable limits.

To reduce the likelihood of needing an extension, pay attention to these risk factors:

• Hiring general contractors without solid local references

• Taking on aggressive renovation scopes without matching experience

• Investing in municipalities with slow zoning or permit processes (such as parts of St. Louis County)

• Acquiring properties where you lack immediate access (e.g., tenants under lease or eviction needed)

• Entering deals that don’t offer both flip and rental exit strategy options

Being disciplined with your planning and market selection in Missouri can significantly lower the chances of costly delays.

Extension Limits

If your loan is not paid off by the end of the term, you may request an extension. Maximum extension duration is 50% of your original loan term.

Extension Terms and Fees

When you request a loan extension, the associated fee will be added to your payoff statement. Fee amounts depend on the length of the extension requested and whether it’s your first or second request.

Extension Prerequisites

Before an extension is approved, you must confirm your Builder’s Risk insurance policy is active and covers the full duration of the extended loan period.

Ineligible Property Types

We do not fund the following property types in Missouri or any other state under this hard money loan program:

• Mixed-use properties

• Multifamily with 5+ units

• Condotels or co-ops

• Mobile or manufactured homes

• Commercial buildings (retail, office, industrial)

• Cabins or log homes

• Properties with oil or gas leases

• Working farms, orchards, or ranches

• Vacation or seasonal rentals

• Unique, exotic, or ultra-luxury properties

• Properties located on dirt or unpaved roads

This list helps ensure that our lending remains focused on Missouri’s mainstream 1–4 unit residential investment market, where asset values and exit strategies are more predictable.

Exception Scenarios

OfferMarket may approve loans outside of standard guidelines under certain circumstances. Missouri investors who demonstrate strong credit, experience, and liquidity may qualify for exceptions in these specific cases:

• Guarantor credit score between 660 – 679

• Leasehold properties with ground rent

• Single family homes between 500 – 699 square feet

• 2–4 unit properties with any unit measuring 400 – 499 square feet

• Funding an initial advance based on As Is value exceeding cost basis

• Non-arm’s length transactions

• Financed interest payments (see below)

Each of these is subject to additional review. Exceptions are more likely to be granted for experienced borrowers in stable Missouri submarkets such as Chesterfield, Raymore, or Columbia.

Borrower and Guarantor Requirements

This structure supports responsible lending for investors across Missouri, especially those acquiring multiple properties across different counties or cities.

Liquidity Verification

We verify that the guarantor(s) have sufficient liquid funds to cover both closing costs and 25% of the rehab budget. These funds must be held in verified accounts under the control of the borrower or guarantor.

Eligible Liquid Assets:

• Personal or business bank accounts

• Bank accounts in the name of the borrowing entity

• Bank accounts in affiliated business entities (with verification)

• Personal or entity-owned brokerage accounts

• Retirement accounts (subject to a 50% reduction for liquidity purposes)

Important Notes:

• You are not required to maintain a business bank account, though it’s considered best practice.

• Funds do not need to be moved or consolidated prior to closing — just verified.

• Cash to close is confirmed by the settlement statement and must be wired by you directly to the closing agent or title company.

This process is consistent across all Missouri transactions, from duplex rehabs in Independence to townhome refinances in Hazelwood.

Credit and Background Items

Our underwriting team conducts a full review of each guarantor's credit and background profile. Here's how that applies for Missouri-based borrowers:

• If your tri-merge credit report returns 3 scores, we use the middle score

• If it returns 2 scores, we use the lower score

• If no mortgage tradelines exist, we require 6 months of interest reserves

• If fewer than 5 tradelines exist, we also require 6 months of reserves

Additional credit and background guidelines:

This credit review standard applies consistently for OfferMarket borrowers in Missouri, whether you’re investing in residential rentals in Columbia or rehabbing in Springfield.

Interest Reserves

In some Missouri transactions, especially where liquidity or credit history may require it, we collect interest reserves at closing. These reserves are placed in escrow and applied toward future interest obligations.

Interest reserves help ensure cash flow stability during the rehab period and are more likely to be required for newer investors or those taking on heavier rehabs in areas such as the Ozarks or outer St. Louis suburbs.

Financed Interest Payments

To support liquidity during the renovation phase, you may qualify for financed interest. Instead of making monthly interest payments, the accrued amount is added to your payoff.

Example:

• Total loan amount: $100,000

• Interest rate: 12%

• Loan held: 9 months

• Accrued interest: $9,000

• Payoff:

  • Unpaid principal: $100,000

  • Unpaid interest: $9,000

This structure is popular among Missouri flippers seeking to maintain financial flexibility during active construction—particularly those managing multiple projects at once.

Frequently Asked Questions (FAQ)

What states does OfferMarket fund hard money loans?

OfferMarket funds hard money loans in nearly all U.S. states, including Missouri. This means investors in Kansas City, St. Louis, Springfield, Columbia, Independence, and smaller Missouri towns can all access our program.

In states that require an NMLS license or where OfferMarket does not lend directly, we operate as a rate shopping platform and refer deals to licensed lenders. Missouri is a fully supported state where we lend directly.

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

Yes. Missouri investors can hold multiple active hard money loans at once. Many of our clients run several projects simultaneously — especially in markets like St. Louis County, where they may flip a house while refinancing a rental.

That said, we assess your financial bandwidth and project management capacity. If we determine your liquidity or project pace is being stretched, we may recommend slowing down to mitigate risk.

Are hard money loans considered commercial loans?

Yes. Though they fund residential properties, hard money loans are classified as business purpose loans and issued to a business entity such as an LLC or corporation. For Missouri investors, this means:

• The property must be non-owner occupied

• The loan cannot be used for personal residences

• It must be held in a business entity, not in your personal name

What is the minimum loan amount?

Our minimum loan amount is $25,000, making our program accessible for lower-cost markets across Missouri — including cities like Joplin, Hannibal, and St. Joseph where property values may be well below coastal market levels.

Which property types are eligible?

OfferMarket funds the following non-owner occupied 1–4 unit residential properties in Missouri:

• Single-family homes

• Duplexes, triplexes, and quadplexes

• Townhomes and condominiums (must be warrantable)

• Planned Unit Developments (PUDs)

Note: Mixed-use buildings and properties with more than 4 units are not eligible under this program but may qualify for other OfferMarket loan products.

How do you calculate Loan-To-Value (LTV) and Loan-To-ARV (LTARV)?

• LTV (Loan-To-Value): Based on the lesser of As Is value or your purchase price

• LTARV (Loan-To-After-Repair Value): Calculated as the total loan amount (initial advance + construction holdback) divided by the after-repair value (ARV)

In Missouri, where ARV potential can vary block by block (especially in cities like St. Louis), our valuation team takes local comps, market conditions, and rehab plans into consideration.

What are the credit score requirements?

Minimum FICO score is 680. If you're between 660–679, we may consider you for an exception, though you may be subject to lower leverage and required to hold more reserves.

For Missouri investors, we look at the credit score of every member of the borrowing entity who is guaranteeing the loan — not non-guarantor members.

What level of real estate experience is required?

None. Experience is not required to get started. First-time Missouri investors can qualify, although experienced borrowers receive higher leverage and greater flexibility.

We score experience using our tiered system, based on completed and verifiable projects within the past 5 years. Transactions in Springfield, Columbia, or Kansas City suburbs, for example, will be reviewed based on your past rehab deals and success with similar scopes.

Does wholesaling experience count?

No. While wholesaling provides exposure to real estate, it does not count as experience under our lending criteria. Only transactions where you:

• Took title

• Completed the renovation

• Managed project execution

What documentation is required to apply?

Our application process is streamlined for speed, especially for active investors across Missouri’s growing markets. You’ll upload your documents through our secure loan file system — no unnecessary paperwork or delays.

Purchase Transaction Requirements

Refinance Transaction Requirements

Loan File Section	Required Item
Settlement Statement	Original settlement docs from purchase
Credit Report	Soft trimerge report for each guarantor
Background Report	For each member of the borrowing entity
Track Record	Verifiable project history, if applicable
ID Verification	Government-issued photo ID
Borrowing Entity	Articles of Organization, Operating Agreement, Certificate of Good Standing, W-9
Sunk Costs	Documented rehab or holding expenses to date
Scope of Work	Budget for remaining rehab to determine ARV
Appraisal Report	Ordered by OfferMarket via AMC
Bank Statements	Two most recent statements from relevant accounts
Letter of Explanation	If requested by underwriting team

Requirement	Guideline
Experience	Minimum Tier 3
Market Liquidity	At least 3 comps within 2 miles sold in the last 6 months
Credit	Minimum 680 with 5 trade lines active for 24+ months
Property	Cannot be rural (based on CFPB/USDA or appraisal)
Documentation	Track record verification for all members

Term	Definition
ADU	Accessory Dwelling Unit. A self-contained living space located on the same parcel as a primary residence — popular for increasing rental income or property value.
Arms-length	A transaction between unrelated parties acting in their own self-interest, ensuring fair pricing. Most Missouri closings fall under this category.
Non-Arms-length	A transaction involving family members, business partners, or entities under common ownership — requires additional review.
Initial Advance	The portion of the loan used to acquire the property, wired to the title company at closing.
Construction Holdback	Funds reserved for renovation costs. Released upon completion milestones through the draw process.
Interest Reserves	Pre-collected interest held in escrow and applied toward your monthly obligations. Based on credit score and number of tradelines.
LOE	Letter of Explanation. A brief statement used to clarify unusual items on credit reports, large bank deposits, or background issues.
LTC	Loan-To-Cost. The ratio of the loan amount to your project’s combined purchase price and renovation cost.
LTFC	Loan-To-Full-Cost. A variation of LTC used in extensive rehabs where renovation cost exceeds the purchase price.
LTV	Loan-To-Value. The ratio of your loan to the property's current (As Is) value.
LTARV	Loan-To-After-Repair Value. The ratio of the total loan to the estimated value of the property after renovation is complete.
As Disbursed Interest	Interest charged only on funds that have been drawn. Applies to loans $100,000 and above.
Full Boat Interest	Also called “Dutch interest,” it means interest is charged on the full loan amount regardless of how much has been disbursed.
Lopsided Deal	A situation where the rehab cost exceeds the As Is value or purchase price. Triggers stricter LTFC limits.
GC Agreement	General Contractor Agreement. Required for larger rehab scopes and often for projects in unfamiliar markets.
DSCR	Debt Service Coverage Ratio. A key underwriting metric for rental loans — calculated as Net Rent ÷ PITIA (Principal, Interest, Taxes, Insurance, and Association fees).