Hard Money Loan North Carolina

Last updated: May 19, 2025

At OfferMarket, we’re committed to helping North Carolina real estate investors thrive. From the historic neighborhoods of Wilmington to the up-and-coming communities of Greensboro, our mission is to provide everything you need to build long-term wealth through real estate. Our platform brings together:

💰 Private lending
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🏚️ Access to off-market investment properties

With our North Carolina Hard Money Loan program, you’ll have access to quick, affordable capital to purchase, refinance, or renovate 1-4 unit residential investment properties across the state.

Whether your goal is to renovate and flip a property in the Triangle, or hold and refinance a duplex in the Piedmont Triad, we’re ready to back your vision and help you scale your portfolio.

Let’s explore the North Carolina Hard Money Loan Program from OfferMarket.

What is a hard money loan?

A hard money loan is a short-term real estate loan secured by the asset itself—typically a 1-4 unit residential property. In North Carolina, these loans are ideal for investors looking to purchase, rehab, and resell properties, or refinance and retain them as rentals.

Commonly referred to as “bridge loans” or “fix and flip loans,” hard money loans offer a flexible solution for investors working on fast timelines in active markets like Charlotte, Raleigh, and beyond.

Hard money loan scenarios

Hard money loans are an essential financing tool for North Carolina real estate investors. Whether you’re investing in rental-heavy areas like Fayetteville or targeting flips in fast-appreciating cities like Raleigh or Asheville, these loans are tailored for flexibility. Here's how investors across the state are using them:

• purchase and renovate an outdated or neglected home – maybe it’s a fixer-upper in Salisbury or a dated duplex in Durham that you want to bring back to life without draining your personal funds
• Refinance a property bought with cash, then renovate – you landed a cash-only off-market deal in Jacksonville or High Point and now need to cash out and fund the renovation
• Refinance an existing loan and finish the renovation – you started a project in Winston-Salem with a different lender but need more time and money to complete the rehab before selling or refinancing into a long-term loan
• Purchase a property with no rehab plans – this might be an undervalued listing in Kannapolis or a pocket deal in Goldsboro that you plan to resell as-is for a fast profit
• Refinance a cash purchase with no rehab – you found a bargain in Rocky Mount and now want to access your equity to pursue your next opportunity
• Refinance an existing loan without a rehab plan – maybe your renovation in Burlington is done, but you need more time to list and sell or refi into a DSCR loan

How it works

Hard money loans for North Carolina investors consist of two key parts, offering the kind of flexibility required in competitive markets like Charlotte, Durham, and beyond:

• Initial Advance – This is the portion of your loan used to fund the property purchase. It’s wired directly to the closing attorney or title company at settlement.
• Construction Holdback – This portion covers your rehab budget and is disbursed to you through draw reimbursements as the project progresses.

What makes our North Carolina hard money loans so effective is their flexibility. You don’t have to use both components—some investors only take the initial advance, while others only use the construction holdback, depending on their strategy.

For example, investors buying homes in Greensboro with cash may only need construction financing. Meanwhile, those acquiring fix-and-flip properties in Raleigh may leverage both components to minimize personal cash outlay. Whether you're doing a light cosmetic upgrade or a full renovation, our structure allows you to tailor the loan to your project’s unique needs.

Project Eligibility

At OfferMarket, we’re dedicated to helping you build lasting wealth through real estate in North Carolina—and that starts with smart, strategic lending. With a default rate of under 0.5%, we’re proud to operate one of the safest lending portfolios in the private lending industry.

From Raleigh to Winston-Salem, we partner with real estate investors as both lenders and advisors. Our priority is not just to fund your projects, but to help you manage risk and maximize your success.

We’ve seen firsthand how lower-experience investors can run into trouble when they take on heavy rehab projects—think older properties in Eastern NC or major overhauls in rural counties. Delays, budget overruns, and shifting market dynamics can put even seasoned investors in a tough position. That’s why we put a strong emphasis on scope-based eligibility.

Our structured approach to classifying renovation projects by complexity helps keep your investments on track. Whether you’re tackling cosmetic updates in Cary or a full rehab in Rocky Mount, you’ll benefit from clear guidance based on your experience level and the scope of work.

Initial Advance

The amount of your initial advance in North Carolina is determined by both your experience and the details of the deal itself. We evaluate how many investment properties you’ve owned in the last 24 months and how many comparable rehab projects you’ve completed in the past five years.

To qualify, you’ll need a minimum credit score of 680. For optimal leverage, a credit score of 720+ from the personal guarantor is strongly preferred. If you're a licensed North Carolina Realtor, General Contractor, or Professional Engineer, you may qualify for additional leverage.

If your purchase price exceeds our appraisal’s “As Is” value, your loan will be calculated based on that As Is valuation, not the contract price. This helps ensure every transaction is based on real market value—not overinflated offers.

Exit strategy plays a role too. Planning to sell? We’ll look for at least a 30% projected return and $15,000 profit. Planning to rent and refinance? Your after-repair DSCR should be at least 1.1.

If you're targeting rural areas—such as properties outside Greenville or Boone—you’ll need to have completed at least three similar projects to qualify for a limited advance.

Experience-Based Tiers

Your experience level plays a major role in determining loan terms. We’ve created a simple tiered structure to define experience based on the number of completed rehab projects. Here's how we classify it for North Carolina investors:

Whether you’re new to real estate in cities like Rocky Mount or you’ve done ten flips in Raleigh, your tier gives us a framework to customize your funding.

Initial Advance by Tier

Depending on your experience tier, your maximum initial advance will vary. This allows us to appropriately manage risk while empowering experienced investors to scale faster in hot North Carolina markets.

Adjustments to Initial Advance

Your loan amount may be adjusted depending on certain risk factors or credentials. This ensures fairness and proper capital structuring—especially in markets like Wilmington, where rehab complexity or borrower profile might differ.

Rehab scope classification

(*) A lopsided deal occurs when the As Is value or purchase price is lower than the rehab budget. Refer to LTFC Limits for experience tier and leverage caps.

In North Carolina, from full home additions in Asheville to light cosmetic rehabs in Greensboro, classifying your rehab scope correctly is key to funding approval and risk mitigation.

Rehab scope eligibility

For North Carolina investors, especially those newer to the game, we strongly advise focusing on "light" or "moderate" rehab projects—like kitchen refreshes in Chapel Hill or flooring upgrades in Wilmington. These projects tend to finish faster and present fewer surprises.

LTARV Limits

Your loan-to-after-repair value (LTARV) limit depends on your experience tier and the rehab complexity. In North Carolina, this framework ensures safer lending practices in both urban areas like Raleigh and more rural towns.

LTFC Limits

When the renovation budget exceeds the purchase price or As Is value—common in deep rehab projects in older North Carolina properties—we apply loan-to-full-cost (LTFC) limits to control risk and ensure investor commitment.

This structure is especially relevant for projects in areas like High Point or Rocky Mount where purchase prices may be low and renovation costs high.

Example Scenarios

Here’s how our North Carolina hard money loans look in practice, based on different experience and credit profiles.

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

This is typical for a first-time investor in Greensboro or Fayetteville where lower property values allow manageable rehab scope and equity.

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

Higher credit scores increase leverage. This model is ideal for professionals entering the North Carolina investment space with strong financial footing.

Example: 5 Completed Projects 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

Experienced investors in Raleigh or Charlotte benefit from top-tier leverage and streamlined approval processes.

Refinance using As Is value instead of cost basis

In North Carolina, our standard underwriting process follows a cost basis model—meaning we lend based on what you’ve already spent, including purchase price and capital expenditures. This approach ensures you retain equity in the project.

However, if you’ve held a property long enough and its current market value (As Is) has outpaced your investment, we may be able to structure your loan based on that As Is value, provided certain criteria are met.

To qualify for this type of refinance structure in cities like Charlotte, Durham, or Greensboro:

• The property must be habitable (condition rating of C4 or better)

• It must have been owned for at least 3 years

• Your payoff letter should not reflect default interest, late fees, or extension charges

• You must have a minimum credit score of 680

• You should be in Experience Tier 3 or higher (4+ verifiable similar rehab projects)

• Sale comps in the neighborhood must strongly support the As Is value exceeding your cost basis

• The scenario must be logical—e.g., the property was rented for several years, is now vacant, and you’re planning renovations to sell or re-rent

This option is commonly used by long-term investors in established markets like Winston-Salem or Cary looking to reposition a well-seasoned asset for the next phase.

Wholesaler Transactions and Price Run-Ups

For North Carolina investors sourcing deals through wholesalers, we allow flexibility—within reason—when calculating the value basis of a transaction.

If your deal includes a markup due to a wholesaler assignment or double close, we can include the increase in the valuation as long as it doesn't exceed 20% of the original seller’s contract price.

Example:
A-B Contract (owner to wholesaler): $100,000
B-C Contract (wholesaler to buyer): $125,000
As Is Value: $125,000
Value basis used: $120,000 (capped at 20% over A-B)

Wholesaler transaction rules:

• We allow assignment fees or double-close markups up to 20% of the original A-B contract.

• If the property was listed on the MLS, that assignment fee may not be eligible for financing.

• You must provide the full chain of contracts (A-B and B-C) and the wholesaler’s operating agreement.

• Finder’s fees and referral fees are not financeable.

• All wholesaler transactions must be arm’s length.

This applies across North Carolina—whether you're working a wholesale flip in Fayetteville or navigating a double close in Greensboro.

Construction Holdback

Our hard money loans include a construction holdback feature, reimbursing you for progress made on renovations as outlined in your scope of work.

You can choose to forego the construction holdback if you prefer to self-fund the rehab. For loans over $100,000, you won’t pay interest on undrawn funds—interest is charged only on disbursed amounts.

This structure helps investors across North Carolina—from Raleigh to Asheville—efficiently manage rehab funding and maintain liquidity throughout the project.

Scenario: Stabilized Hard Money Loan

For properties across North Carolina that are already in good condition (C4 or better), we offer stabilized hard money loans. This structure is ideal for rental-ready homes or turn-key flips in places like Raleigh, Cary, or Winston-Salem.

Instead of funding against a projected ARV, we fund based on the current As Is value. The property must show no deferred maintenance, and the maximum loan term is 12 months.

Key Loan Details

Extensions

Hard money loans in North Carolina are intended to be short-term—typically 12 to 24 months. Most investors repay well before maturity. However, when delays occur, extensions are possible.

Still, extending your loan is not ideal. It adds fees, incurs more interest, and increases the risk of foreclosure if the term expires without payoff.

To reduce the risk of needing an extension, avoid:

• Working with underqualified general contractors

• Overly ambitious rehab scopes given your experience or liquidity

• Markets like Durham or Asheville with slow permitting or zoning

• Situations where access is delayed due to tenants or legal issues

• Projects without dual exit strategies (sell or refi)

Managing these variables increases your chances of completing the project on schedule.

Extension Limits

Extensions can be requested in 3-month or 6-month increments.

Extension Terms and Fees

Extension fees are added to your loan’s payoff statement:

Extension Prerequisites

To qualify for an extension, your builder’s risk insurance policy must remain active for the entire extension period. This applies to all North Carolina properties, whether you’re rehabbing in Charlotte or Goldsboro.

Ineligible Property Types

While our program supports a wide range of residential investment properties across North Carolina, certain asset types are excluded from eligibility:

• Mixed use properties

• Multifamily buildings with 5+ units

• Condotels and co-ops

• Mobile or manufactured homes

• Commercial real estate

• Log homes and cabins

• Properties with oil or gas leases

• Operational farms, ranches, or orchards

• Vacation and seasonal rentals

• Luxury or exotic homes

• Properties on unpaved or dirt roads

These exclusions help us maintain underwriting consistency across various North Carolina markets—from Charlotte to rural counties.

Exception Scenarios

OfferMarket may make exceptions in the following situations, pending full underwriting review:

• Guarantor credit score between 660–679

• Leasehold ownership (ground rent)

• Single-family homes between 500–699 SQFT

• 2–4 unit properties where one or more units are between 400–499 SQFT

• Loans using As Is value exceeding cost basis

• Non-arm’s length transactions

• Financed interest payments to protect borrower liquidity

These cases are handled individually and may apply to nuanced situations, particularly in cities like Durham or Wilmington.

Borrower and Guarantor Requirements

Liquidity Verification

To ensure responsible lending and project completion, we require proof that guarantors hold enough liquidity to cover:

• All expected closing costs

• Plus 25% of the total rehab budget

Acceptable liquid assets include:

• Personal or business bank accounts

• Entity bank accounts (with operating agreement verification)

• Personal or entity brokerage accounts

• Retirement accounts (valued at 50% of balance due to restrictions)

Important notes:

• A business account is not mandatory but is strongly recommended for clean recordkeeping.

• You don’t need to transfer funds. We simply verify the balances and documentation.

This applies across all markets, whether you're investing in Raleigh, Fayetteville, or smaller towns throughout the state.

Credit and Background Items

Our underwriting process takes into account both credit scores and background factors:

• If 3 credit scores are reported: we use the middle (second highest)

• If 2 scores are reported: we use the lower of the two

• If no mortgage tradelines: 6 months of interest reserves required

• If fewer than 5 total tradelines: 6 months of interest reserves required

• Bankruptcy: must be discharged for 4+ years

• Foreclosure: must have completed 4+ years ago

• Bankruptcy or foreclosure between 4–7 years: 3 months of interest reserves required

• Late mortgage payments (past 12 months): subject to review, LOE required

• Past due tradelines: must be paid before funding

• Liens/judgments: must be cleared before funding

• Civil lawsuits: LOE required, subject to committee discretion

• Criminal lawsuits: ineligible if pending

• Financial crimes or serious crimes: ineligible

• Repeated crimes: LOE required and subject to discretion

Interest Reserves

When applicable, interest reserves are collected at closing and drawn down automatically before monthly interest payments begin.

This policy helps North Carolina investors avoid payment disruptions during active rehab periods.

Financed Interest Payments

North Carolina investors may be eligible for financed interest payments. This option adds your interest charges to the payoff balance rather than requiring monthly payments. It’s ideal for preserving liquidity during the rehab phase, particularly when you're juggling multiple projects.

Example:

• Loan Amount: $100,000

• Interest Rate: 12%

• Duration: 9 months

• Accrued Interest: $9,000

Payoff Statement:

• Unpaid Principal Balance: $100,000

• Unpaid Interest: $9,000

This structure helps investors in markets like Raleigh, Greensboro, and Durham stay flexible with capital and avoid overreliance on credit.

Property Sourcing Guidelines

We require the following when sourcing properties in North Carolina:

• For new markets (where you haven’t yet done a deal), include either a General Contractor agreement or a Letter of Explanation (LOE) for why one is unnecessary

• If the property has seen rapid value increases, is part of a wholesale deal, or is a non-arm’s length transaction, we’ll need additional documentation

• Condos, conversions, and complex renovations may require permits or letters from an architect or engineer

• Standard submission documents include purchase contracts, settlement statements, payoff letters (if applicable), your track record, and LLC formation docs

These checks help ensure transparency and mitigate risk on transactions statewide.

Insurance Guidelines for Hard Money Loans

To protect your investment in North Carolina, Builder’s Risk or Fix and Flip insurance is required. This policy bundle ensures protection during the rehab period when properties are often vacant or under construction.

Coverages and Limits

Coverage Details

Tip: Immediately after closing, install smoke detectors, locks, and security cameras. This ensures compliance with your policy and prevents denied claims.

Frequently Asked Questions

What states does OfferMarket fund hard money loans?

OfferMarket directly lends or offers rate shopping for private capital in nearly every U.S. state, including North Carolina. Other eligible states include:

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 Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, Washington DC, West Virginia, Wisconsin, Wyoming

(*) In states like Arizona, Minnesota, Nevada, North Dakota, South Dakota, Utah, and Vermont, where licensing or regulatory restrictions apply, we may serve you through a licensed capital partner.

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

Yes. Many North Carolina investors work on multiple projects at once. We support this model but take your liquidity and project capacity into account to help manage your risk.

Are hard money loans considered commercial?

Yes. These loans are made to your business entity (LLC or Corporation), not to you personally. As such, they’re classified as business-purpose commercial loans, even if the underlying property is residential.

What is the minimum loan amount?

$25,000 is the minimum loan amount available under this program—ideal for entry-level projects and smaller markets across North Carolina.

Which property types are eligible?

We fund non-owner occupied, 1–4 unit residential properties such as:

• Single-family homes

• Duplexes, triplexes, fourplexes

• Warrantable condominiums

• Townhomes and planned unit developments

Note: Mixed-use, large multifamily (5+ units), and commercial properties like retail or office spaces are not eligible under this specific loan product.

How is LTV calculated?

Loan-to-Value (LTV) in hard money lending typically means:

• LTV: Loan amount divided by the As Is value

• LTARV: Total loan (initial advance + rehab holdback) divided by the After Repair Value

For example, if you're investing in Durham and the As Is value of a property is $120,000 and your purchase price is $125,000, your loan would be based on the lower of those two. If your ARV is $180,000, then we calculate your LTARV based on that future value post-rehab.

What documentation is required?

Purchase Transactions

Refinance Transactions

Are there special requirements for loans over $1M?

Yes. For hard money loans between $1,000,001 and $2,000,000, OfferMarket applies enhanced eligibility criteria. These measures help ensure risk is properly managed for higher-dollar projects—especially in active real estate markets like Charlotte and Raleigh.

This structure ensures that high-balance loans in North Carolina are supported by credible experience, strong resale comps, and adequate borrower capacity.

Glossary of Key Terms

Instant Hard Money Loan Quote

OfferMarket Capital LLC is a top-tier private lender for real estate investors in North Carolina, specializing in fast, flexible hard money and DSCR loans for 1–4 unit residential properties.

Our mission is to help you build wealth through real estate—and we’re ready to partner with you on your next flip, BRRRR project, or refinance.

Membership is completely free and gives you access to:

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