Hard Money Loan Montana

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 $100K loan: full boat
	$100K+ loan: as disbursed
Advanced draws	Lender discretion
Down payment (minimum)	$10,000

Initial Advance by Tier

* Tier 1 borrowers with excellent credit and liquidity may be considered for up to 85% on an exception basis.

Adjustments to Initial Advance

Rehab scope classification

A low purchase price “lopsided deal” is when the As Is value or purchase price is less than the rehab amount. See LTFC Limits section below for Tier and LTFC limits.

Rehab scope eligibility

Your rehab scope eligibility is based on your experience tier and your rehab scope classification. In line with our focus on proper risk management, we advise our clients to focus on projects with lower rehab scopes, commonly referred to in the industry as “cosmetic” rehabs that can be completed quickly.

LTARV Limits

Your maximum loan-to-after-repair value (LTARV or ARLTV) is based on your experience tier and the rehab scope classification.

LTFC Limits

LTFC or “Loan-to-Full-Cost” is imposed on rehab scopes classified as Extensive which means the rehab budget is greater than the purchase price or As Is value of the subject property. An LTFC of 85% means the lender funds 85% of the project cost (purchase price + rehab budget), and the borrower covers the remaining 15% of the project cost. This ensures the borrower has skin in the game in projects with higher execution risk.

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

At OfferMarket, we typically lend based on your cost basis — that’s the combination of your purchase price and any sunk costs like renovations already incurred. This approach ensures you maintain equity and reduces exposure.

But for Montana investors who’ve owned a property for years — say a rental in Whitefish or an inherited home in Lewistown — and are now ready to fix it up or sell, we can offer refinancing based on its As Is value, rather than your historical cost.

Requirements:

• Property must be habitable (condition C4 or better) — no major disrepair

• 3+ years seasoning (you’ve owned it for at least 3 years)

• Payoff statement from previous lender must not show late fees, default interest, or extensions

• Guarantor credit score of 680 or higher

• Experience Tier must be 3 or above (4+ similar projects)

• Strong comps to justify As Is value > cost basis

• Clear, logical narrative (e.g., held as rental, tenants moved out, now prepping to rehab/sell)

Transactions involving wholesalers, price run-ups

Montana investors who acquire deals through wholesalers or assignment contracts can still access OfferMarket funding — but there are rules around price increases between contracts.

For example:

A-B Contract (original owner and wholesaler): $100,000
B-C Contract (wholesaler assigns to you): $125,000
As Is Value: $125,000
Value basis used for your loan: $120,000 (max 20% run-up from A-B)

Wholesaler transaction guidelines:

• Assignment fees or double-close spreads up to 20% of A-B contract can be financed

• No MLS-listed properties allowed in this scenario

• Must submit full chain of contracts (A-B, B-C)

• Must provide wholesaler’s operating agreement

• OfferMarket won’t finance referral or finder’s fees

• Must be arm’s length transaction (no related parties)

Construction Holdback

This portion of your Montana hard money loan is used for renovations — whether you’re turning a duplex in Billings or updating a cabin in West Yellowstone.

Funds are released through a draw process and reimbursed upon verified progress.

You can opt out of the holdback if you plan to fund renovations with your own capital. And if your total loan amount exceeds $100,000, interest only accrues on disbursed funds.

Appraisal and In-house valuation

Every Montana hard money loan requires a property valuation. This could be:

• Third-party appraisal (interior or exterior)

• In-house valuation (if eligible)

In-house valuation

If you already have an appraisal done by another lender, OfferMarket can transfer it if:

• Ordered through an approved AMC

• Less than 180 days old at closing

• Recertified if older than 120 days

• Accompanied by:

  • Signed transfer letter (certifying AIR compliance)

  • Appraisal (PDF and XML)

  • Paid appraisal invoice

Scenario: Stabilized Hard Money Loan

If your Montana property is already in solid condition — maybe a move-in ready single-family in Missoula or a light cosmetic flip in Billings — you may qualify for a Stabilized Hard Money Loan. These deals are for properties with no deferred maintenance and an appraisal condition rating of C4 or better.

In these cases, we lend based on the As Is value, up to 75%.

Key Loan Details

Extensions

Hard money loans are designed to be fast, short-term solutions — 12 to 24 months max — with most Montana investors paying off early. That said, life happens. If you need more time to complete or sell a project in Bozeman or Kalispell, extensions are available but not ideal.

Delays increase risk and costs, so we recommend avoiding them by steering clear of:

• GCs with light resumes

• Overly ambitious renovations

• Areas with sluggish zoning (like smaller municipalities)

• Properties with difficult tenant situations or delayed access

• Projects with no dual exit strategy (sell or refinance)

Extension Limits

Extension Terms and Fees

Extension Prerequisites

You must confirm that your builder’s risk insurance is active for the entire extension period.

Ineligible Property Types

To protect borrowers and ensure strong underwriting, the following property types are not eligible for funding through our Montana hard money program:

• Mixed-use

• 5+ unit multifamily

• Condotels

• Co-ops

• Mobile/manufactured housing

• Commercial properties

• Cabins/Log homes

• Properties with oil/gas leases

• Operating farms, ranches, orchards

• Vacation/seasonal rentals

• Unique/exotic/luxury properties

• Unpaved or dirt roads

Borrower and Guarantor Requirements

Liquidity verification

To ensure Montana borrowers are well-capitalized, we require that guarantors verify liquidity equal to the estimated cash to close + 25% of rehab budget.

Eligible liquid assets:

• Bank account(s) in personal name

• Bank account(s) in borrowing entity name

• Bank account(s) in other business entity name (need to verify operating agreement)

• Brokerage account(s) in personal name

• Brokerage account(s) in borrowing entity name

• Brokerage account(s) in other business entity name (need to verify operating agreement)

• Retirement account(s) in personal name (50% reduction applied due to restricted nature of account)

You don’t need to move your funds. We just verify what’s already in your accounts.

Credit and Background Items

Interest Reserves

These are collected at closing (if required), placed in escrow, and used to cover interest payments before monthly ACH payments kick in.

Financed Interest Payments

If you’re investing in Montana with limited liquidity and want to preserve working capital for your project, you may be eligible to finance interest payments.

Instead of monthly payments, interest is deferred and added to your payoff.

Example:
Loan amount: $100,000
Interest rate: 12%
Held for: 9 months
Interest: $9,000
Payoff = $109,000

Property Sourcing Guidelines

Key Points:

• New markets require a GC agreement or LOE if no GC is used

• Wholesales, resale run-ups, or non-arm’s length deals need additional documentation

• Condo conversions or major rehabs require permits or engineer letters

• Must include all contracts, formation docs, statements, etc.

Insurance Guidelines for Hard Money Loans

Montana fix and flip investors need Builder’s Risk insurance. This is non-negotiable — it covers the structure during renovation, plus protects against liability claims.

Coverages and Limits

Coverage Details

💡 Montana Pro Tip: As soon as you acquire the property, install locks, smoke detectors, and security cameras. This helps ensure compliance and avoids claim denial.

Frequently Asked Questions

What states does OfferMarket fund hard money loans?

OfferMarket actively provides hard money loans in nearly all 50 states, and Montana is one of them. Unlike certain states where we must operate through a referral or rate shopping model due to licensing requirements (like Nevada or Oregon), Montana falls squarely within our direct lending footprint.

That means real estate investors in Billings, Bozeman, Missoula, and beyond can work directly with OfferMarket Capital LLC to get fast, reliable financing tailored to 1-4 unit residential investment properties.

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

Yes, you can. Many of our Montana clients operate multiple deals simultaneously — for instance, flipping a duplex in Helena while refinancing a triplex in Kalispell.

However, we carefully assess your liquidity, credit, and execution track record before approving concurrent loans. If our underwriters determine that taking on additional projects would compromise your financial safety or cause execution delays, we will work with you to prioritize risk management rather than pushing volume.

Our number one priority is ensuring your success — not overleveraging you.

Are hard money loans commercial?

Yes. Hard money loans are considered commercial or business-purpose loans. That means:

• Loans are issued to business entities (LLCs or Corporations)

• Borrowers must use the funds for investment, not personal use

• These loans are not subject to consumer protection laws like TILA or RESPA

Whether you’re building a BRRRR portfolio in Great Falls or flipping in Livingston, these loans are structured for professional investors — not for primary residences or personal use.

What is the minimum loan amount?

The minimum amount you can borrow through our Montana hard money loan program is $25,000.

This makes it especially accessible for investors working on affordable properties in smaller towns like Havre or Miles City — areas with excellent margins but lower price points.

Which property types are eligible?

OfferMarket provides hard money loans for non-owner occupied, 1–4 unit residential properties. Eligible types include:

• Single-family homes

• 2–4 unit multifamily buildings

• Townhomes

• Warrantable condominiums

• Planned Unit Developments (PUDs)

However, we do not fund:

• 5+ unit multifamily buildings (except through our multifamily lending programs)

• Commercial retail, industrial, or office

• Mixed-use properties

• Mobile homes, cabins, or manufactured housing

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

In hard money lending, LTV usually refers to Loan-to-After-Repair Value (LTARV), not just the As Is value.

We calculate LTARV by adding your initial advance and your construction holdback, then dividing that total by the after-repair value (ARV) based on our appraisal or in-house valuation.

For refinance transactions, the initial advance is based on the lesser of:

• Your property’s current As Is market value

• Your cost basis (what you paid plus improvement expenses)

What are the credit requirements?

You must have a minimum FICO score of 680 to qualify for a Montana hard money loan through OfferMarket.

That said, borrowers with scores between 660–679 may be considered on an exception basis, especially if:

• Liquidity is strong

• The deal structure is low-risk

• There is a strong guarantor involved

We assess each guarantor of the borrowing entity — only those guaranteeing the loan need to meet the credit threshold.

What are the experience requirements?

No experience? No problem.

OfferMarket does not require experience to qualify for funding — even if you’re pursuing your very first flip in Montana. However, experience unlocks better leverage, especially if you’re pursuing complex or high-budget renovations.

Our system uses verifiable track record data to assign your borrower tier:

As your tier increases, so does your potential leverage and project flexibility.

Does being a wholesaler count toward experience?

No. Acting as a wholesaler does not count toward your verifiable experience tier, because:

• You were not responsible for funding the deal

• You didn’t complete the renovation

• You didn’t manage the risk or disposition

We only consider completed rehab projects where you were financially and operationally responsible for the execution.

What documentation is required?

We make documentation easy through our online Loan File system, which allows you to upload, track, and reuse verified docs for future projects.

Purchase Transaction Requirements

Refinance Transaction Requirements

Are there special requirements for loans over $1M?

Yes. If you’re seeking a hard money loan of $1,000,000 or more in Montana, these enhanced guidelines apply:

Glossary of Key Terms

Ready To Fund Your Next Montana Deal?

Whether you're flipping a fixer-upper in Butte, scaling your BRRRR portfolio in Missoula, or cashing out equity in Billings, OfferMarket is your trusted Montana hard money lender.

We offer fast approvals, zero prepayment penalties, and flexible loan structures designed to keep you moving — not waiting.

Join thousands of investors who rely on OfferMarket for:

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

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