Hard Money Loan New York
All steps completed - you're finished
Last updated: May 19, 2025
At OfferMarket, our mission is to help you grow your wealth through strategic real estate investment in New York. Whether you’re working a fix and flip in the Hudson Valley or pursuing a BRRRR project in Brooklyn, our all-in-one platform is built for your success:
💰 Private lending in New York
☂️ Insurance rate comparison
🏚️ Access to off-market properties across NYC, Long Island, and beyond
Our Hard Money Loan program is tailored to New York investors needing reliable, fast, and competitively priced financing for 1-4 unit residential investment properties. Whether you aim to flip a brownstone in Bed-Stuy or refinance a duplex upstate, we’re here to help you close with confidence.
Let’s take a closer look at how the OfferMarket Hard Money Loan Program can power your New York real estate goals.
What is a hard money loan?
A hard money loan is a short-term financing option backed by tangible real estate—in our case, 1-4 unit residential properties across the state of New York. These loans are ideal for acquiring, rehabbing, and either reselling or renting investment properties.
In New York, where inventory is tight and competition is high, hard money loans (sometimes called bridge loans or fix and flip loans) enable investors to move quickly, secure deals, and build value.
Hard money loan scenarios in New York
In the Empire State, savvy investors often use hard money loans in these common scenarios:
Acquiring distressed or dated properties in places like Rochester or Queens — when you prefer not to tie up your own capital in both purchase and renovation
Refinancing a property bought with cash — ideal for off-market buys in neighborhoods like the Bronx or Buffalo where cash speaks loudest
Paying off an existing lender while you finish rehab — especially common in high-demand, fast-moving boroughs like Brooklyn
Purchasing without plans to renovate — buying undervalued units in cities like Syracuse or Albany to resell "as is"
Refinancing a cash purchase without rehab — tapping into equity to move on the next opportunity
Refinancing after renovation — once the project is complete and you're ready to hold or sell
How it works
Every OfferMarket hard money loan includes two components:
- Initial Advance – This is the portion of the loan used to fund the purchase of the property. It's wired to the title company at settlement.
- Construction Holdback – This funds the renovation budget. We reimburse you based on progress made.
Many New York investors use both components to conserve cash and enhance ROI. Some opt for just the purchase advance or rehab holdback, depending on the deal.
Whether you’re rehabbing a triplex in Yonkers or flipping a cape cod in Suffolk County, your strategy may shift—what matters is optionality. You might start with a BRRRR plan and end up selling, or vice versa. The flexibility of our hard money structure means you’re always in control.
Who uses hard money loans in New York?
Flippers focused on fast equity gains in competitive markets like Brooklyn or Westchester
BRRRR investors building rental portfolios in areas like Albany, Binghamton, or Long Island
Hybrid investors who pivot between holding and selling based on market trends
We offer a bundled approach: a hard money loan for acquisition and rehab, followed by a discounted DSCR refinance to help you scale smart.
Hard Money Loan Program Guidelines (New York)
| 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: full boat; $100,000+: as disbursed |
| Advanced draws | Lender discretion |
| Down payment (minimum) | $10,000 |
Project Eligibility
Real estate in New York is high-stakes, and we’re committed to helping you navigate it safely. With one of the lowest default rates in the private lending industry—less than 0.5%—we take pride in responsible lending that empowers success.
Newer investors tackling complex properties in boroughs like the Bronx or neighborhoods with permitting friction, such as those in Westchester, face real risks. Extensive rehabs and unpredictable zoning can delay projects, spike costs, and reduce ROI.
We act as your capital partner and risk manager, advising you every step of the way. To that end, we follow a structured rehab classification and eligibility system based on experience and project scope.
Initial Advance
The initial advance is based on your experience and the deal’s fundamentals. Here’s what we consider:
Number of investment properties held in the last 24 months
Verifiable rehab completions in the past 5 years
Minimum credit score: 680 (preferred: 720+ for best terms)
Extra leverage for New York-based professionals: Licensed Realtors, GCs, and PEs
💡 If your contract price exceeds the As Is valuation, we base our initial advance on the lower value.
Exit strategy matters too. If you plan to sell, your projected ROI must be 30%+ with at least $15K profit. For refinances, the after-repair DSCR should be 1.1 or higher.
Experience-Based Tiers
| Tier | Verifiable experience |
|---|---|
| 1 | 0 |
| 2 | 1 to 2 |
| 3 | 3 to 4 |
| 4 | 5 to 9 |
| 5 | 10+ |
Initial Advance by Tier
| Tier | Initial advance (% of purchase price) |
|---|---|
| 1 | 80%* |
| 2 | 85% |
| 3 | 85% |
| 4 | 90% |
| 5 | 90% |
*85% possible with strong credit and liquidity.
Adjustments to Initial Advance
| Scenario | Adjustments |
|---|---|
| Credit score < 720 | -5% |
| Full gut rehab | -5% |
| New York market unfamiliarity | -5% |
| Licensed Realtor | +5% |
| Licensed General Contractor | +10% |
| Licensed Professional Engineer | +10% |
| Rural (NY Upstate) | -20% (Tier 3+ only) |
Rehab Scope Classification
| Rehab Scope | Definition |
|---|---|
| Light | < 25% of purchase price |
| Moderate | 25% to 49.99% of purchase price |
| Heavy | 50% to 99.99% of purchase price |
| Extensive | 100%+ of purchase price, additions, ADUs, etc. |
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 in New York to focus on projects with lower rehab scopes, commonly referred to in the industry as “cosmetic” rehabs that can be completed quickly.
| Tier | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Experience | 0 | 1-2 | 3-4 | 5-9 | 10+ |
| Light | Eligible | Eligible | Eligible | Eligible | Eligible |
| Moderate | Ineligible | Eligible | Eligible | Eligible | Eligible |
| Heavy | Ineligible | Eligible | Eligible | Eligible | Eligible |
| Extensive | Ineligible | Ineligible | Eligible | Eligible | Eligible |
LTARV Limits
Your maximum loan-to-after-repair value (LTARV or ARLTV) is based on your experience tier and the rehab scope classification. This structure is designed to ensure that your leverage is appropriate for your skill level and the project’s complexity, particularly in the unique and often unpredictable New York market.
| Tier | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Experience | 0 | 1-2 | 3-4 | 5-9 | 10+ |
| Light | 70% | 70% | 75% | 75% | 75% |
| Moderate | Ineligible | 70% | 75% | 75% | 75% |
| Heavy | Ineligible | 70% | 75% | 75% | 75% |
| Extensive | Ineligible | Ineligible | 70% | 70% | 70% |
LTFC Limits
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.
| 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% |
Example: No Experience
Scenario:
Purchase price: $100,000
Tier: 1
Credit: 695
Rehab: $24,000
ARV: $150,000
Terms:
Initial advance: $75,000 (75%)
Holdback: $24,000
Total loan: $99,000
LTARV: 66%
LTFC: 79.8%
Interest: Full boat
Example: No Experience, Excellent Credit
Scenario:
Credit: 750
Initial advance: $80,000 (80%)
Holdback: $24,000
Total loan: $104,000
LTARV: 69.3%
LTFC: 83.9%
Interest: As disbursed
Example: 5 Experience
Scenario:
Tier: 4
Credit: 750
Initial advance: $90,000 (90%)
Holdback: $20,000
Total loan: $110,000
LTARV: 73.3%
LTFC: 91.67%
Interest: As disbursed
Refinance Using As Is Value
New York investors who’ve owned and improved a property (3+ years seasoned, habitable) may qualify for refinance using the higher As Is value rather than cost basis. Ideal for seasoned BRRRR operators in markets like Albany or Queens.
Requirements:
3+ years seasoned
Property in C4 condition or better
Credit 680+
Tier 3+
Proof of value (comps, rents, etc.)
Transactions involving wholesalers, price run-ups
If the transaction involves a wholesaler, then the entire assignment fee or double-close price run-up can be included in the value basis as long as the price run-up is not more than 20% of the purchase price between the wholesaler and the seller (owner of record). You will be responsible for any additional component of the price run-up above this limit.
This is especially relevant in New York’s fast-paced real estate market, where wholesale transactions are common in both urban and suburban neighborhoods—from Brooklyn walk-ups to undervalued properties in places like Yonkers or Poughkeepsie.
For example:
A-B Contract (original owner of record and wholesaler): $100,000
B-C Contract (assignment fee): $25,000
As Is Value: $125,000
Value basis for initial advance: $120,000
| Wholesaler transaction guidelines |
|---|
| OfferMarket can include the assignment fee or double-close price run-up in your cost basis for your initial advance, up to 20% of A-B purchase price |
| OfferMarket may decide to not allow the assignment fee or double close price run-up to be financed if the property was listed on the MLS |
| OfferMarket requires full chain of contracts/assignments (A-B, B-C) and wholesaler’s operating agreement |
| OfferMarket will not finance finders fees or referral fees |
| Must be arm’s length transaction |
Construction Holdback
The construction holdback component of your loan is provided via draw request and reimbursement for verified progress against your scope of work. Learn more about Draw Processing.
If you have sufficient liquidity to float the rehab with your own capital and you do not want a construction holdback component of your loan, you can elect to have no construction holdback.
Note that if your total loan amount is $100,000 or higher, then you will not be charged interest on undrawn construction holdback funds (see “As Disbursed” interest accrual).
| 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 |
Appraisal and In-house valuation
A valuation is required for all OfferMarket hard money loans. Depending on the scenario, we will require a 3rd party interior appraisal, 3rd party exterior appraisal, or in-house valuation.
In-house valuation
| 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 |
For borrowers that meet the above criteria, OfferMarket reserves the right to require an interior appraisal or exterior appraisal per the below sections at its sole discretion.
Exterior appraisal
Exterior appraisals are acceptable in the following scenarios:
REO sale
Foreclosure auction
Sheriff’s sale
Online auction
Bankruptcy sale
Exterior appraisal must be dated within 120 days of settlement date. If 120 but less than 180 days, then recertification of exterior appraisal is required.
Interior appraisal
Any scenario not mentioned in the above ‘Exterior appraisal’ or ‘In-house valuation’ sections will require a full interior appraisal:
| 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) |
Unless in the case of appraisal transfer (see below), OfferMarket will be responsible for ordering the appraisal via appraisal management company (AMC). You will be responsible for completing the AMC’s invoice. Loan requests with unpaid appraisal invoices will be moved to HOLD status until the invoice is paid.
Appraisal transfer
Appraisals not ordered by OfferMarket are eligible to be transferred to OfferMarket so long as the following conditions are met:
Appraisal was ordered via an approved appraisal management company
Appraisal is less than 180 days old at closing of our loan
Appraisal is re-certified if 120 to 179 days old at closing of our loan
Transferring lender has provided OfferMarket with:
Signed transfer letter including the following certification:
"Lender certifies that the Appraisal was ordered and processed in compliance with the Appraiser Independence Requirements (AIR).”Appraisal report (pdf)
Appraisal report (xml)
Appraisal invoice showing the appraisal has been paid for
Scenario: Stabilized Hard Money Loan
If the subject property has no deferred maintenance with an appraisal condition rating of C4 or better, then we will appraise the property on an As Is basis and fund up to 75% of the As Is value. This scenario is referred to as “stabilized” because the property is stabilized and ready for rent or sale.
| 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 |
Key Loan Details
| 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 specific projects |
| Extensions | Up to 50% of original term (fee applies) |
| Points | 1.5 to 2 points ($2,000 minimum) |
| Prepayment Penalty | None. There is 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 loan amount ("Full Boat"); Loan Amount ≥ $100K: funds disbursed ("As Disbursed") |
Extensions
Hard money loans are intended to be short-term: 12 to 24 months where most loans are paid off well within 12 months. Extending your hard money loan is not ideal and should be avoided as a matter of best practice because extensions incur fees, additional interest, and place you at risk of foreclosure if the loan is not paid off after the extension limit is reached.
To avoid extending your hard money loan, it’s important to focus on avoiding the following:
General contractors with limited experience and references
Aggressive rehab scope relative to experience and liquidity
Markets with slow zoning and permitting
Scenarios where you do not have immediate access to the property (i.e. inherit a tenant with remaining lease term, or holdover requiring eviction)
Scenarios where there is not a dual exit strategy to sell or refinance
Controlling for the above factors will dramatically reduce the risk that your project is delayed and needs to be extended.
Extension Limits
| Initial Loan Term | Max Extension |
|---|---|
| 12 months | 6 months |
| 18 months | 9 months |
| 24 months | 12 months |
Extension Terms and Fees
Extension fees will be added to your payoff statement per the following fee schedule:
| 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 |
Extension Prerequisites
In order to extend your loan, you will need to confirm that your builders risk insurance policy is in effect for the duration of the extension period.
Ineligible Property Types
The following property types are not eligible for funding in this 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
Exception scenarios
| Scenario | Notes |
|---|---|
| 660 - 679 guarantor credit score | May be considered on exception basis |
| Leasehold (ground rent) | Eligible, subject to terms |
| Single family property 500 to 699 SqFt | Eligible, subject to tier and scope |
| 2-4 unit property with one or more unit 400 to 499 SqFt | Eligible, subject to tier and scope |
| Funding initial advance based on As Is value that is higher than Cost Basis | Eligible, subject to underwriting approval |
| Non-arms length transactions | Eligible, subject to disclosure and justification |
| Financed interest payments | Available based on liquidity and credit factors |
Borrower and Guarantor Requirements
| Item | Requirements / Eligibility |
|---|---|
| Borrowing Entities | Limited Liability Company (LLC) or Corporation; nonprofits are not eligible. |
| Eligible Borrowers | US Citizens, US Permanent Residents, and qualified Foreign Nationals |
| Foreign Nationals | Valid Passport; Valid US Visa (excludes Travel/Student Visas if not on Visa Waiver Program); US FICO score required if serving as Guarantor |
| Credit Requirements | Minimum 680 FICO (exceptions between 660–679); Tri-Merge Credit Report (not older than 120 days) |
| Liquidity Requirements | Minimum of estimated cash to close + 25% rehab budget among guarantor(s) |
| Eligible liquid assets | Bank account (personal or business), brokerage account, retirement account (50% haircut) |
| Verification | 2 most recent statements, no seasoning required for new accounts, LOE for large deposits |
| Guaranty Structure | Purchase: at least 51% of the borrowing entity must guarantee; Cash out refinance: 100% of the borrowing entity must guarantee; Full Recourse required |
| Net Worth | Aggregate guarantor net worth must be at least 50% of loan amount |
Credit and Background Items
| Criteria | Requirement |
|---|---|
| 3 credit scores | Use the middle score (2nd highest) |
| 2 credit scores | Use the lowest score |
| No mortgage tradelines | Require 6 months of interest reserves |
| Fewer than 5 tradelines | Require 6 months of interest reserves |
| Bankruptcy | Must be discharged >4 years from settlement |
| Foreclosure | Must be completed >4 years from settlement |
| BK or foreclosure 4–7 years | Minimum 3 months of interest reserves required |
| Late mortgage payments | LOE required; may be ineligible at loan committee discretion |
| Past due tradelines | Must be paid in full prior to funding |
| Involuntary liens/judgments | Must be paid in full prior to funding |
| Pending civil lawsuits | LOE required; subject to loan committee discretion |
| Pending criminal lawsuits | Not eligible for funding |
| Financial crime | Not eligible for funding |
| Serious crime | Not eligible for funding |
| Repeat crime | LOE required; subject to loan committee discretion |
Interest Reserves
Interest reserves refer to interest payments collected on the settlement statement and held in servicing escrow. Interest reserves, if applicable to your loan, are applied to your accrued interest and drawn down before you start making your monthly interest payment from your bank account.
| Interest Reserve | Scenario |
|---|---|
| 0 month | Lender discretion |
| 1 month | Guarantor FICO 700+ |
| 3 months | Guarantor FICO of 660 - 699 |
| 6 months | Guarantor FICO of 660 - 699 AND/OR concerning item on credit or background report |
Financed Interest Payments
To protect your liquidity and avoid compromising your credit score due to excessive usage of credit cards during your rehab, you may be eligible for financed interest payments. This means that, instead of making monthly interest payments, your interest will be added to your payoff statement.
For example:
Total loan amount: $100,000
Interest rate: 12%
Months held to payoff: 9
Accrued interest: $9,000 ($100,000 × 12% ÷ 12 × 9 months)
Payoff statement:
Unpaid principal balance: $100,000
Unpaid interest: $9,000
This structure is particularly helpful for New York investors who are managing multiple projects or working with tight cash flow in high-cost boroughs like Manhattan or Queens, where preserving capital during construction is critical.
Property Sourcing Guidelines
| Key Points |
|---|
| New market transactions require a General Contractor agreement or Letter of Explanation for why a GC is not required. |
| Properties with previous sale price increases, wholesale deals, and non‑arms length transactions require additional documentation and review. |
| For condos, conversions, and projects requiring significant renovation, architect or engineer letters (or permits) are required. |
| All submissions should include purchase contracts, settlement statements, payoff letters (if applicable), track record, and necessary formation documents. |
Insurance Guidelines for Hard Money Loans
It’s critical to insure your physical property including the dwelling from the risk of damage and loss, and insure yourself and your company from liability in the event of accident at the subject property. Hard money loan insurance is commonly referred to as Builders Risk insurance or Fix and Flip insurance and it’s a specialized bundle of coverages for properties under construction, in poor condition, and/or vacant.
Coverages and Limits
| Coverage type | Limit | Required |
|---|---|---|
| Dwelling | Replacement Cost or Loan Amount (zero coinsurance) | Yes |
| Liability | $1M per occurrence / $2M annual aggregate | Yes |
| Builders Risk | Included | Yes |
| Flood | Greater of $250,000 or the loan balance | Only if in FEMA Special Flood Hazard Area |
Coverage Details
| Coverage item | Requirement |
|---|---|
| AM Best Rating | A- VIII or greater |
| Policy type | Special Form |
| Deductible | $1,000 to $5,000 |
| Lender's Designation | Mortgagee and Additional Insured |
| Exclusions | No windstorm, hail or named storm exclusion |
| Cancellation | 30-day notice |
As part of best practices in New York, especially in regions with higher property crime or extreme weather vulnerability (such as coastal Long Island), you should ensure your property is secured with smoke detectors, locks, and active surveillance as soon as you take ownership. This not only satisfies insurance requirements but also protects your asset and prevents claim denials.
Frequently Asked Questions
What states does OfferMarket fund hard money loans?
We fund hard money loans in the following states:
Alabama
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Mississippi
Missouri
Montana
Nebraska
New Hampshire
New Jersey
New York
North Carolina
Ohio
Oklahoma
Pennsylvania
Rhode Island
South Carolina
Tennessee
Texas
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming
In states lwhere NMLS licensure is required or where OfferMarket does not lend directly, we operate as a private capital marketplace and refer loans to qualified licensed lending partners.
Can I do more than one hard money loan at a time?
Yes, you can have more than one hard money loan at a time. It is common for OfferMarket clients to have multiple hard money loans outstanding at any given point in time. This said, our number one priority is assisting you with risk management and if we feel as though your liquidity or pace of project execution does not support additional loans, we will raise this concern and work with you to safely manage your risk.
Are hard money loans commercial?
Yes. Hard money loans are considered “business purpose” loans and accordingly, because they are issued to your business entity (“borrowing entity”), they are classified as commercial loans.
What is the minimum loan amount?
The minimum loan amount is $25,000.
Which property types are eligible?
We finance non‑owner occupied 1‑4 unit residential properties including single-family residences, townhomes, small multifamily (2‑4 units), and warrantable condos.
Note:
2-4 unit mixed use, 5-9 unit mixed use, and 5-9 unit multifamily properties are not eligible in this program but are available via their respective loan programs here at OfferMarket.
10+ unit residential and non-residential commercial (i.e. retail, office, industrial) are not eligible
How do you calculate Loan-to-Value (LTV)?
For hard money loans, LTV most commonly refers to loan-to-after-repair-value (LTARV). LTV is loan-to-as-is-value. Our initial advance is based on the lower of the As Is value and the purchase price in your contract or the purchase price in your previous closing if this is a refinance transaction. LTARV is the total loan amount (initial advance + construction holdback) divided by the after-repair value determined in our appraisal report or in-house valuation.
What are the credit requirements?
A minimum FICO score of 680 is required. Borrowers with scores between 660 and 680 may be considered on an exception basis. We look at the credit score of each member of the borrowing entity that will be personally guaranteeing the loan. We do not look at the credit score of members who will not be personally guaranteeing the loan.
What are the experience requirements?
Experience is not required. Experience, based on verifiable completed projects with rehab scopes similar or greater than the requested loan, allows for greater leverage based on our experience Tier system detailed above.
Once you complete the Track Record section of your Loan File, our underwriting team will research each subject property. We may ask for supplemental documentation such as settlement statement(s), and operating agreement(s) so we can verify your involvement with the project.
Does being a wholesaler count towards experience?
Being a wholesaler in a transaction does not count towards your experience score because you were not financially responsible for successful completion of the rehab of the associated subject property.
What documentation is required?
Our Loan File system is designed to make it easy to complete processing items and expedite loan approval and funding. Documentation that can be used for future transactions will be securely stored in your OfferMarket account to expedite future loan applications.
Purchase Transaction Requirements
| Loan File sections | Requirements |
|---|---|
| Purchase Contract | Fully executed by buyer and seller |
| Credit Report | Soft trimerge credit report for each member of the borrowing entity that will be a guarantor |
| Background Report | Required for each member of the borrowing entity |
| Track Record | Required for each member of the borrowing entity |
| ID Verification | Government-issued ID (i.e. driver’s license, passport, Green Card) |
| Borrowing entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9 |
| Scope of Work | A detailed rehab budget that will be used to determine ARV |
| Appraisal Report | You will be provided with a link to pay your appraisal invoice. Your appraisal will be uploaded to your loan file |
| Bank Statements | Two (2) most recent statements for each guarantor. Account(s) can be personal (i.e. bank, brokerage, retirement); do not need to be in the name of the borrowing entity |
| Letter of Explanation | If requested by our underwriting team (i.e. large deposits, late payments, background items) |
Refinance Transaction Requirements
| Loan File sections | Requirements |
|---|---|
| Settlement Statement | Fully executed by buyer, settlement agent |
| Credit Report | Soft trimerge credit report for each member of the borrowing entity that will be a guarantor |
| Background Report | Required for each member of the borrowing entity |
| Track Record | Required for each member of the borrowing entity |
| ID Verification | Government-issued ID (i.e. driver’s license, passport, Green Card) |
| Borrowing entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9 |
| Sunk Costs | The line items and associated costs that have already been incurred |
| Scope of Work | Your detailed budget that will be used to determine ARV and guide your rehab of the property |
| Appraisal Report | You will be provided with a link to pay your appraisal invoice. Your appraisal will be uploaded to your loan file |
| Bank Statements | Two (2) most recent statements for each guarantor. Account(s) can be personal (i.e. bank, brokerage, retirement); do not need to be in the name of the borrowing entity |
| Letter of Explanation | If requested by our underwriting team (i.e. large deposits, late payments, background items) |
Are there special requirements for loans over $1M?
Loans over $1M (up to our $2M maximum) are subjected to the following adjusted guidelines:
| Criteria | Explanation |
|---|---|
| Experience | Minimum experience of 3; similar or greater price point strongly preferred |
| Market liquidity | Minimum of 3 comps within a 2-mile radius sold on the MLS in the last 6 months |
| Credit score | Minimum 680 with a minimum of 5 trade lines with 24-month history |
| Rural designation | Not eligible if designated rural by CFPB and USDA or appraisal report |
| Track Record | Required for each member of the borrowing entity |
Glossary of Key Terms
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit. A secondary, self-contained, housing unit located on the same tax parcel as a main single family home. |
| Arms-length | A deal between independent parties with no special relationship, ensuring fair market value. |
| Non Arms-length | A transaction where a personal, financial, or business connection between the parties may affect fairness, pricing, or terms. |
| Initial Advance | The component of the total loan that will go towards the purchase price. This amount is wired to the title company at closing. |
| Construction Holdback | The portion of the loan that is disbursed to fund renovations based on completion draws. |
| Interest Reserves | Interest collected at settlement and held in escrow to pay accrued interest before the borrower begins making monthly payments. |
| LOE | Letter of explanation. A document that provides clarification on financial, credit, or legal matters. |
| LTC | Loan to Cost. Loan amount divided by (purchase price + rehab costs). |
| LTFC | Loan to Full Cost. Loan amount divided by total project cost, used in extensive rehabs. |
| LTV | Loan to As-Is Value. Loan amount divided by current property value. |
| LTARV | Loan to After Repair Value. Total loan divided by projected after-repair value. |
| As Disbursed Interest | Interest accrued only on loan funds that have been drawn. |
| Full Boat Interest | Interest charged on the full loan amount regardless of draw status. |
| Lopsided deal | When the rehab budget exceeds purchase price or As Is value. |
| GC Agreement | A general contractor contract detailing project execution. |
| DSCR | Debt Service Coverage Ratio. Rental income ÷ PITIA (principal, interest, taxes, insurance, and association dues). |
Instant Hard Money Loan Quote
Our private lending division, OfferMarket Capital LLC, is a leading private lender for 1–4 unit residential real estate investors and we specialize in hard money loans and DSCR loans. Our mission is to help you build wealth through real estate and we would love the opportunity to partner with you on your next transaction.
Thousands of real estate investors get value from OfferMarket every month. Membership is entirely free and includes the following benefits:
💰 Private lending ☂️ Insurance rate shopping 🏚️ Off market properties 💡 Market insights
