Hard Money Loan North Dakota

Last updated: May 9, 2025

At OfferMarket, we’re committed to helping you grow your real estate portfolio across the Peace Garden State. For investors in North Dakota—from Fargo to Bismarck, Grand Forks to Minot—we provide a full-suite platform built for your real estate ambitions:

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

Our Hard Money Loan North Dakota program is structured to give you quick, reliable, and cost-efficient funding to acquire, refinance, or renovate 1-4 unit residential investment properties throughout the state.

Whether your exit plan is to flip for fast profit or to rent and refinance using a DSCR loan, we’re here to support your North Dakota real estate journey and earn your trust as your capital partner.

Let’s explore the OfferMarket Hard Money Loan Program—tailored for North Dakota real estate investors.

What is a hard money loan?

A hard money loan is a short-term real estate loan secured by a physical asset—in this case, a residential investment property (1 to 4 units). It's a popular option in North Dakota for investors looking to purchase, refinance, or renovate homes and convert them into profitable rental units or flip opportunities.

Commonly called “bridge loans” or “fix and flip loans,” hard money loans help investors across North Dakota make competitive cash offers, close quickly, and access rehab capital without tying up personal funds.

Hard money loan scenarios

Real estate investors across North Dakota often utilize hard money loans for the following use cases:

• Purchasing distressed or dated homes to renovate and flip or rent

• Refinancing cash purchases to pull out equity for renovations

• Paying off existing loans on fix-and-flip projects while continuing renovations

• Buying properties at a discount without plans to rehab—then selling as-is

• Refinancing discounted acquisitions to unlock equity for further investments

• Refinancing completed rehabs while preparing for resale or long-term rental

How it works

Every hard money loan has two core parts:

Initial Advance – Funds used toward purchasing the property. This is wired directly to the title company at closing.
Construction Holdback – Funds set aside for your renovation budget. These are reimbursed in stages based on project progress.

Hard money loans are built to be flexible. If you only need purchase funding or only need funds for rehab, we tailor the structure to fit your project.

In North Dakota, most investors prefer a mix of initial advance and construction holdback to maximize leverage and reduce upfront capital outlay. However, some prefer using their own rehab funds or acquiring without improving the property.

Whether you’re flipping a duplex in Dickinson or rehabbing a fourplex in Williston, our hard money loans give you the optionality you need.

Your exit plan can include:

• Flipping for resale profits

• Renting and refinancing into a long-term DSCR loan

Sometimes your strategy will evolve. For instance, you may intend to BRRRR but find a hot resale market in Fargo. Or, perhaps you wanted to flip a house in Bismarck, but the rental numbers work too well to ignore.

Having dual exit options is a hallmark of smart investing—especially in dynamic housing markets like North Dakota.

Who uses hard money loans?

Real estate investors across North Dakota leverage hard money loans for a variety of strategies. These include:

• Fix and flip investors ("flippers") – Renovating undervalued or outdated properties across cities like Fargo, Bismarck, and Grand Forks and reselling for profit.
• Buy and hold investors ("BRRRR method") – Buying, rehabbing, renting out, and refinancing into a long-term DSCR loan. This strategy is popular in stable rental markets like Minot and Jamestown.

💡 Learn about our Fix and Rent bundle—designed for investors who want both the hard money loan and a discounted DSCR refinance all in one place.

Many North Dakota investors adopt a flexible approach—flipping some properties and holding onto others, depending on local market dynamics and return expectations.

Hard Money Loan Program Guidelines

Project Eligibility

At OfferMarket, our goal is to help North Dakota investors grow their portfolios while managing risk. We maintain a foreclosure rate under 0.5%—among the lowest in the industry.

Borrowers in cities like Fargo or Bismarck with limited experience must be especially cautious with high-difficulty projects. Full gut rehabs or projects with structural issues can create execution risks, especially during volatile market conditions.

As your lending partner, we act not just as a capital provider—but also as your risk advisor. Our eligibility process is designed to evaluate each project based on scope and borrower experience to ensure sustainable success.

Initial Advance

The initial advance depends on both the borrower’s profile and the deal specifics. We evaluate:

• Credit score (minimum 680, ideal 720+)

• Past rehab experience (verified projects in the last 5 years)

• Number of properties owned in last 24 months

• Projected profit or DSCR depending on exit strategy

In North Dakota’s smaller markets or rural towns, initial advances may be more conservative. For example, a rural project outside Devils Lake may require a borrower with Tier 3 experience or higher.

If your purchase price is higher than our appraised "As Is" value, we base our initial advance on the lower of the two.

Exit strategy impacts your leverage:

Use our Fix and Flip Calculator or DSCR Calculator to analyze your North Dakota projects before committing.

If your project is in a rural designated area, expect lower leverage and a requirement of 3+ verified rehabs.

Experience-Based Tiers

OfferMarket’s lending program for North Dakota hard money loans uses a tier system to assess your experience and determine your leverage.

Initial Advance by Tier

If you're a licensed Realtor, General Contractor, or Professional Engineer based in North Dakota, you may qualify for increased leverage.

Adjustments to Initial Advance

Rehab Scope Classification

This framework helps us evaluate North Dakota projects—from cosmetic touch-ups in West Fargo to full-scale rebuilds in rural areas near Rugby or Garrison.

Rehab scope eligibility

Your rehab scope eligibility for hard money loans in North Dakota is determined by your verified experience tier and the classification of your project. We emphasize risk management, especially for newer investors, by encouraging manageable cosmetic rehab projects that can be completed swiftly and predictably.

In regions of North Dakota with limited contractor availability or longer permit cycles, we recommend focusing on light to moderate rehab projects unless you have verified experience handling more complex scopes.

LTARV Limits

The maximum Loan-To-After-Repair Value (LTARV) for your North Dakota hard money loan is based on your experience tier and the project’s rehab scope. LTARV is the ratio of your total loan amount to the projected after-repair value.

Projects with heavy or extensive rehab in smaller North Dakota towns should be evaluated carefully to ensure your LTARV supports a profitable and realistic exit.

LTFC Limits

Loan-To-Full-Cost (LTFC) applies only to extensive rehab projects—where the rehab budget exceeds the purchase price or As Is value. This ensures adequate borrower equity in high-risk projects.

This requirement is especially relevant for investors operating in North Dakota’s rural counties where property values are lower and extensive rehabs can exceed initial purchase prices.

Rehab scope eligibility

Your rehab scope eligibility for hard money loans in North Dakota is determined by your verified experience tier and the classification of your project. We emphasize risk management, especially for newer investors, by encouraging manageable cosmetic rehab projects that can be completed swiftly and predictably.

In regions of North Dakota with limited contractor availability or longer permit cycles, we recommend focusing on light to moderate rehab projects unless you have verified experience handling more complex scopes.

LTARV Limits

The maximum Loan-To-After-Repair Value (LTARV) for your North Dakota hard money loan is based on your experience tier and the project’s rehab scope. LTARV is the ratio of your total loan amount to the projected after-repair value.

Projects with heavy or extensive rehab in smaller North Dakota towns should be evaluated carefully to ensure your LTARV supports a profitable and realistic exit.

LTFC Limits

Loan-To-Full-Cost (LTFC) applies only to extensive rehab projects—where the rehab budget exceeds the purchase price or As Is value. This ensures adequate borrower equity in high-risk projects.

This requirement is especially relevant for investors operating in North Dakota’s rural counties where property values are lower and extensive rehabs can exceed initial purchase prices.

Refinance using As Is value instead of Cost Basis for Initial Advance

Our standard underwriting approach for hard money loans in North Dakota follows the principle of lending within your cost basis—that is, the purchase price and the capital already invested in the property. This ensures borrowers retain equity and have meaningful “skin in the game.”

In refinance scenarios where the subject property is already seasoned and its As Is value exceeds the cost basis, and you are seeking leverage for renovation, we will conduct a case-by-case review and require the following:

• Property must be habitable (≥ C4 condition) and not in a state of major disrepair

• Property must be seasoned for 3+ years

• Payoff statement must not include default interest, late fees, or extension fees

• Credit score must be 680+

• Experience Tier must be 3 or higher (at least 4 similar completed rehab projects)

• Comps must support that As Is value is greater than cost basis

• Scenario must be supportable (i.e. property was rented and now being updated for resale)

Transactions involving wholesalers, price run-ups

For North Dakota deals involving wholesalers, we allow inclusion of the assignment fee or double-close markup in the valuation—subject to limits and documentation.

For example:

Wholesaler transaction guidelines:

• OfferMarket may include the assignment fee/double-close markup up to 20% of A-B price

• The markup must not exceed 20% of A-B purchase price

• Not eligible if the property was listed on the MLS

• Full contract chain (A-B and B-C) and wholesaler’s operating agreement required

• No financing of referral or finder’s fees

• Must be an arm’s length transaction

Construction Holdback

The construction holdback portion of your North Dakota hard money loan is disbursed through a draw process. Funds are reimbursed for completed work that aligns with your submitted Scope of Work.

You may opt out of the construction holdback if you have sufficient capital to fund your own rehab.

If your total loan exceeds $100,000, interest is only charged on disbursed funds, not the full holdback.

Appraisal and In-house valuation

A valuation is required for all OfferMarket hard money loans in North Dakota. Based on the specifics of the deal, we may require a 3rd party interior appraisal, 3rd party exterior appraisal, or in-house valuation.

In-house valuation

If your deal in North Dakota meets these conditions, we may allow an in-house valuation. However, OfferMarket may still require an interior or exterior appraisal at its discretion.

Exterior appraisal

Exterior appraisals are permitted in the following North Dakota scenarios:

• REO sales

• Foreclosure auctions

• Sheriff’s sales

• Online auctions

• Bankruptcy sales

Note: The appraisal must be dated within 120 days of your settlement date. If it is between 120 and 179 days old, a recertification is required.

Interior appraisal

If your loan scenario does not fall within the criteria listed for exterior or in-house appraisals, a full interior appraisal is required.

OfferMarket will order the appraisal through a licensed Appraisal Management Company (AMC). The borrower is responsible for paying the appraisal invoice before the loan can proceed. Loans with unpaid appraisal invoices will be moved to HOLD status.

Appraisal transfer

Appraisals not ordered directly by OfferMarket may be transferred if the following conditions are met:

• Ordered via an approved AMC

• Less than 180 days old at time of closing

• Recertification required if 120–179 days old

• Transferring lender must provide:

  • Signed transfer letter with this certification:
    "Lender certifies that the Appraisal was ordered and processed in compliance with the Appraiser Independence Requirements (AIR)."

  • PDF appraisal report

  • XML appraisal report

  • Appraisal invoice confirming payment

Scenario: Stabilized Hard Money Loan

If your North Dakota property is already in good condition (C4 or better), we may treat it as a stabilized asset and fund up to 75% of the As Is value.

Key Loan Details

Extensions

Hard money loans are designed as short-term financing tools, typically 12 to 24 months. Most North Dakota projects funded through OfferMarket are completed and paid off well before term expiration.

We recommend avoiding extensions whenever possible, as they involve additional interest, fees, and may increase the risk of foreclosure if the loan remains unpaid beyond the extension limit.

Focus on reducing extension risk by avoiding:

• Underqualified general contractors

• Aggressive rehab scopes without adequate liquidity

• Markets with lengthy permitting or zoning delays

• Properties with limited access (e.g., inherited tenants, eviction situations)

• Lack of dual exit strategies (refinance and sell flexibility)

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

The following property types are not eligible for hard money loan funding in North Dakota under this program:

• Mixed-use

• 5+ unit multifamily

• Condotels

• Co-ops

• Mobile/manufactured housing

• Commercial properties

• Cabins or log homes

• Properties with oil/gas leases

• Operating farms, ranches, or orchards

• Vacation or seasonal rentals

• Unique, exotic, or luxury properties

• Properties on unpaved or dirt roads

Exception scenarios

The following scenarios may be approved on a case-by-case basis, typically with compensating factors such as high liquidity, experience, or strong deal economics:

• Guarantor credit score between 660–679

• Leasehold properties (ground rent)

• Single family properties between 500–699 SqFt

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

• Funding based on As Is value higher than cost basis

• Non-arms-length transactions

• Financed interest payments

Each of these exceptions requires additional underwriting scrutiny and may involve changes to leverage, reserves, or valuation method—especially for transactions in smaller or rural North Dakota markets.

Borrower and Guarantor Requirements

Liquidity Verification

To ensure a safe level of financial readiness, OfferMarket verifies that borrowers and guarantors have sufficient liquidity before funding a hard money loan in North Dakota.

Requirements:

• Minimum liquidity must cover:

  • The estimated cash to close, plus

  • At least 25% of the rehab budget

Eligible Liquid Assets:

• Bank accounts in the name of the guarantor (personal or business)

• Bank accounts in the name of the borrowing entity

• Bank accounts in other business entities (must include operating agreement for verification)

• Brokerage accounts in the name of the guarantor or entity

• Retirement accounts (valued at 50% of their total due to restricted access)

Verification Process:

• Provide the two most recent statements for each account used to verify liquidity

• No seasoning is required — new accounts are acceptable

• If there are large or unusual deposits, a Letter of Explanation (LOE) will be required

Notes:

• You are not required to transfer or consolidate funds into a business account

• Cash to close will be verified through your final settlement statement

• All verified funds must be under the control of a guarantor listed on the loan

Extensions

Hard money loans are intended to be short-term. Most projects in North Dakota are completed and paid off well before the loan term expires. However, if your loan reaches maturity and has not been paid off, you may request an extension.

While extensions are available, they should be avoided when possible, as they involve additional fees and interest, and may increase the risk of default and foreclosure if the loan remains unpaid after the extension period.

Common causes for delays:

• Hiring inexperienced general contractors

• Taking on aggressive rehab scopes with limited liquidity

• Investing in areas with slow permitting and zoning departments

• Delayed access to the property (i.e., inherited tenants, holdovers)

• Projects that lack a clear dual exit strategy (refinance or sell)

Managing these risk factors is essential for keeping your project on track.

Extension Limits

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

Extension Terms and Fees

The applicable extension fee will be added to your payoff statement.

Extension Prerequisites

To be eligible for an extension, you must ensure that your builder’s risk insurance policy is valid and active for the entire extension period.

Ineligible Property Types

OfferMarket does not provide hard money loans in North Dakota for the following types of properties:

• Mixed-use properties

• 5+ unit multifamily

• Condotels

• Co-ops

• Mobile or manufactured homes

• Commercial properties

• Cabins or log homes

• Properties with oil or gas leases

• Operating farms, ranches, or orchards

• Vacation or seasonal rentals

• Unique, exotic, or luxury properties

• Properties located on unpaved or dirt roads

These property types fall outside of our underwriting guidelines due to added complexity, valuation uncertainty, and increased risk.

Exception Scenarios

Certain scenarios fall outside standard guidelines but may be eligible for funding on a case-by-case basis with compensating factors such as strong credit, liquidity, or experience.

• Guarantor credit score between 660 and 679

• Leasehold properties (ground rent structure)

• Single family homes between 500 and 699 square feet

• 2–4 unit properties with at least one unit between 400 and 499 square feet

• Funding based on As Is value that is higher than cost basis

• Non-arms-length transactions

• Financed interest payments requested in lieu of monthly interest

All exceptions are reviewed by OfferMarket’s underwriting team and must meet internal risk criteria.

Interest Reserves

Interest reserves are amounts collected at closing and held in escrow. These funds are applied toward monthly interest payments before the borrower begins making direct payments.

Financed Interest Payments

To protect liquidity and reduce financial strain during renovations, you may be eligible to finance interest payments. This means monthly interest is added to your payoff balance instead of paid each month.

Example:
Loan Amount: $100,000
Interest Rate: 12%
Loan Term: 9 months
Accrued Interest: $9,000
Total Payoff: $109,000 (Principal + Interest)

Eligibility for financed interest is subject to approval and overall risk profile.

Property Sourcing Guidelines

OfferMarket requires detailed documentation and review for all acquisitions, especially in North Dakota markets where transaction data may be limited.

Key Points:

• For new market projects: a general contractor agreement or LOE is required if no GC is used

• Wholesale transactions, price escalations, and non-arms-length deals require complete contract chains

• For condos, major rehabs, or structural modifications: letters from licensed professionals or permits may be required

• Submissions must include:

  • Purchase contracts

  • Settlement statements

  • Payoff letters (if refinancing)

  • Track record documentation

  • Entity formation paperwork

Insurance Guidelines for Hard Money Loans

Builder’s Risk or Fix and Flip insurance is required for all hard money loans in North Dakota to protect both the property and the investor from loss.

Coverage and Limits

Coverage Details

Best Practices:
Install smoke detectors, locks, and security cameras immediately after taking ownership to reduce risk of insurance claim denial.

Frequently Asked Questions

What states does OfferMarket fund hard money loans?

OfferMarket operates in most U.S. states. In North Dakota, where direct lending is restricted, OfferMarket acts as a loan advisor and refers borrowers to licensed capital providers.

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

Yes. Many North Dakota investors manage multiple active loans. Your eligibility depends on liquidity, credit, and project performance.

Are hard money loans considered commercial?

Yes. These are business-purpose loans and are considered commercial in nature since they’re issued to LLCs or corporations.

What is the minimum loan amount?

$25,000.

What property types are eligible?

Non-owner occupied 1–4 unit residential properties, including single family homes, small multifamily (2–4 units), townhomes, and warrantable condos.

How is Loan-To-Value (LTV) calculated?

LTV is based on the lower of purchase price or As Is value. LTARV is calculated using the projected After Repair Value (ARV).

What are the credit requirements?

Minimum FICO score of 680. Exceptions for scores between 660–679 may be reviewed with compensating factors.

What are the experience requirements?

Experience is not required. More experience qualifies borrowers for higher leverage through our tier system.

Does wholesaling count toward experience?

No. Experience must involve direct financial responsibility for completing a rehab project.

What documents are required?

Purchase Transaction Requirements

Refinance Transaction Requirements

Are there Special Requirements for Loans Over $1M?

Glossary of Key Terms

Instant Hard Money Loan Quote

OfferMarket Capital LLC is a leading private lender specializing in hard money and DSCR loans for 1–4 unit residential investment properties. Our mission is to help real estate investors across North Dakota build long-term wealth with dependable and competitive financing.

Through our platform, you get access to a full suite of investor tools including private lending, insurance rate shopping, off-market properties, and instant quoting — all in one place.

Whether you’re acquiring a flip opportunity in Fargo, executing a BRRRR strategy in Bismarck, or refinancing a stabilized rental in Minot, we’re here to support your success with fast approvals, flexible terms, and investor-first underwriting.

Thousands of investors across the U.S. use OfferMarket each month. Membership is free and includes:

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

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