Hard Money Loan Ohio
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Last updated: May 19, 2025
At OfferMarket, we’re committed to helping you grow your real estate portfolio right here in Ohio. Whether you're flipping properties in Cleveland, rehabbing rentals in Columbus, or acquiring distressed homes in Cincinnati, our integrated platform is designed with you in mind:
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Our Hard Money Loan program is tailored to offer fast, reliable, and competitively priced financing for your 1-4 unit residential investment properties throughout the Buckeye State.
No matter your exit plan—whether you're aiming to flip for a profit or buy, rehab, and refinance into a DSCR loan—we’re here to support your success at every step.
Let’s dive into the OfferMarket Ohio Hard Money Loan Program!
What is a Hard Money Loan in Ohio?
A hard money loan is a short-term, asset-based loan secured by residential investment real estate—specifically, 1-4 unit properties. In Ohio, this type of financing is ideal for investors looking to purchase, refinance, or rehab a property to either flip or hold as a rental.
Often referred to as “bridge loans” or “fix and flip loans,” hard money loans in Ohio serve as flexible, quick-close funding solutions for active real estate investors across cities like Akron, Dayton, and Toledo.
Hard Money Loan Scenarios in Ohio
Ohio investors utilize hard money loans in a wide variety of real estate investment strategies. Some of the most common use cases include:
Purchasing and rehabbing distressed homes in neighborhoods like Olde Towne East (Columbus) or Tremont (Cleveland) without deploying all of your own capital.
Refinancing cash-bought properties to tap into equity and finish renovations—particularly helpful when you’ve closed fast on a deal in cash in Cincinnati and now need funds to improve the property.
Replacing an existing loan where the rehab is incomplete—maybe you need more time and capital to finish a project in Dayton, and your current lender requires repayment.
Acquiring properties below market value without rehab plans—like scooping up a deeply discounted duplex in Youngstown to quickly resell as-is for a profit.
Tapping equity from a cash purchase, especially when you spot another lucrative deal in the local Ohio market.
Refinancing a completed rehab to extend your timeline for marketing and sale—ideal for those flipping in slower-moving rural counties or suburbs.
How Hard Money Loans Work in Ohio
Every OfferMarket hard money loan in Ohio is built from two parts:
- Initial Advance: This covers a portion of your purchase price and is wired directly to the title company at closing.
- Construction Holdback: This portion covers your rehab budget and is released in draws as work progresses.
Our program is flexible—whether you're working on a three-family in Cleveland Heights or a single-family in Dayton, you can tailor your loan to match your needs. Some investors choose just the initial advance, while others fund their rehab entirely through a holdback. If you’ve already bought a property with cash, you can still request a holdback for up to 100% of your renovation budget.
Your exit strategy might be a flip or a rental refinance using a DSCR loan. And it's okay to adjust that plan based on market conditions in your Ohio neighborhood. For example:
A project in Toledo might start as a BRRRR, but shift to a flip if market comps show strong resale value.
Or you might aim to sell a renovated home in Columbus but instead decide to rent it and refinance after the market cools.
Choosing projects with flexible exit strategies helps protect your investment and adapt to Ohio’s real estate landscape.
Who Uses Hard Money Loans in Ohio?
Hard money loans are popular among:
Fix and Flip Investors – Renovating properties in Ohio cities like Youngstown or Springfield for resale profit.
Buy and Hold Investors (BRRRR Method) – Acquiring, rehabbing, and renting single or multifamily properties in neighborhoods like German Village (Columbus) or Over-the-Rhine (Cincinnati).
Many Ohio investors mix strategies—flipping some properties and refinancing others to hold long-term. This hybrid approach is a smart way to stay agile and build wealth over time.
💡 Want both? Ask about our Fix and Rent bundle—get a hard money loan for purchase and rehab, then refinance with a discounted DSCR loan.
Ohio Hard Money Loan Program Guidelines
| Criteria | Guideline |
|---|---|
| Loan amount (min) | $25,000 |
| Loan amount (max) | $2,000,000 |
| ARV (min) | $100,000 |
| Experience | Not required |
| Credit score (min) | 680 |
| Borrowing entity | LLC or Corporation |
| Initial advance | Up to 90% |
| Construction holdback | Up to 100% |
| LTARV (max) | 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 or in-house valuation |
| SqFt (min) | SFR: 700+, 2-4 units: 500+/unit, Condo: 500+ |
| Acreage (max) | 5 |
| Interest accrual | < $100K: full boat, ≥ $100K: as disbursed |
| Advanced draws | Lender discretion |
| Down payment (min) | $10,000 |
These guidelines help Ohio investors—whether buying in rural counties or metro markets—access responsible, flexible financing.
Project Eligibility for Ohio Real Estate Investors
Our mission at OfferMarket is to help you build wealth through real estate across Ohio’s diverse cities and counties. We achieve this by placing a strong emphasis on risk management. With a default rate of under 0.5%, we take pride in offering one of the most responsible private lending platforms in the country.
If you're new to investing in markets like Canton or Lorain, it’s essential to approach more complex renovations with caution. High-difficulty projects—those requiring full gut rehabs or structural expansion—often face construction delays, budget overruns, and risks from market shifts, especially during economic downturns.
Our approach isn’t just to fund your deal; we act as your advisor, underwriter, and capital partner. We’ll work with you to ensure your renovation scope aligns with your experience level through our rehab classification framework, designed to help you succeed safely in the Ohio market.
How Initial Advance Works in Ohio
Your initial advance—the portion of your loan used to acquire the property—is calculated based on both your experience and deal specifics. Whether you’re buying in urban hubs like Cincinnati or smaller towns like Zanesville, we evaluate your last 24 months of property ownership and the number of verified rehab projects you've completed in the past 5 years.
Minimum credit score is 680, but we offer enhanced leverage for those with scores of 720+, especially if you’re a licensed Realtor, General Contractor, or Professional Engineer.
If the contract purchase price exceeds our As Is valuation, your loan will be based on the lower appraised value. Your projected exit strategy also influences the loan size:
For flips: We require a projected gross margin of at least 30% and a minimum $15,000 profit.
For rentals: A post-rehab DSCR of 1.1 or higher is required.
Rural Ohio properties (like in Adams or Meigs County) have additional constraints, including lower leverage and a minimum experience level of Tier 3.
Experience-Based Tiers for Ohio Borrowers
At OfferMarket, your experience level helps determine how much leverage you can receive. Whether you’re flipping homes in Columbus or rehabbing rentals in Akron, your completed projects shape your tier assignment.
| Tier | Verifiable Experience |
|---|---|
| 1 | 0 similar projects completed |
| 2 | 1 to 2 similar projects completed |
| 3 | 3 to 4 similar projects completed |
| 4 | 5 to 9 similar projects completed |
| 5 | 10 or more similar projects completed |
The more experience you demonstrate—especially with similar properties in Ohio—the more favorable your loan terms can be.
Initial Advance By Tier
Your tier doesn’t just reflect your experience—it determines your eligible initial advance percentage. Here's how that breaks down:
| Tier | Initial Advance (% of Purchase Price) |
|---|---|
| 1 | 80% (*up to 85% for borrowers with excellent credit and liquidity) |
| 2 | 85% |
| 3 | 85% |
| 4 | 90% |
| 5 | 90% |
This structure ensures responsible lending across diverse Ohio markets—from high-demand areas like Dublin and Westlake to emerging markets in Springfield and Middletown.
Adjustments to Initial Advance in Ohio
While your tier sets the baseline for your initial advance, several Ohio-specific factors can increase or decrease your eligible leverage.
| Scenario | Adjustment |
|---|---|
| Credit score below 720 | -5% |
| Full gut renovation | -5% |
| New investment market (first-time in area like Athens or Elyria) | -5% |
| Licensed Ohio Realtor | Up to +5% |
| Licensed Ohio General Contractor | Up to +10% |
| Licensed Professional Engineer | Up to +10% |
| Rural property (minimum Tier 3) | -20% |
For instance, if you're flipping a farmhouse in rural Belmont County with a full gut rehab scope and limited experience, your advance may be significantly adjusted for risk.
Rehab Scope Classifications for Ohio Projects
The scope of your renovation directly influences loan terms. Here’s how we define project scopes across the state—from inner-city rehabs in Cleveland to bungalow flips in Toledo.
| Rehab Scope | Definition |
|---|---|
| Light | Rehab budget < 25% of purchase price |
| Moderate | Rehab budget 25% to 49.99% of purchase price |
| Heavy | Rehab budget 50% to 99.99% of purchase price |
| Extensive | Rehab budget ≥ 100% of purchase price, including additions, ADUs, or "lopsided deals" (when rehab cost exceeds As Is value) |
This classification helps guide your eligibility and risk exposure.
Rehab scope eligibility
Your rehab-scope eligibility is determined by your experience tier and the size of the renovation budget. We encourage Ohio investors to start with lighter, cosmetic projects that can be finished quickly and predictably.
| 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 |
If you’re new (Tier 1), stick to light rehabs—paint, flooring, fixtures. Once you’ve completed a few projects and move to Tier 2 or 3, moderate and heavy scopes become available. Extensive rehabs—full gut jobs, additions, ADUs—are reserved for investors with a solid track record (Tier 3+).
LTARV Limits
Maximum loan-to-after-repair-value (LTARV) for Ohio projects depends on your experience tier and rehab scope:
| 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
For “Extensive” rehabs—where the rehab budget equals or exceeds purchase price—loan-to-full-cost (LTFC) is capped as follows:
| 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 (Tier 1)
Purchase price $100,000 | Rehab budget $24,000 | ARV $150,000
Initial advance: 75% of purchase price → $75,000
Construction holdback: $24,000
Total loan amount: $99,000
LTARV: 66% | LTFC: 79.8%
Interest accrual: Full-boat (on total loan balance)
Example: No Experience, Excellent Credit
Same deal metrics, but with a 750 FICO (Tier 1 exception):
Initial advance: 80% of purchase price → $80,000
Construction holdback: $24,000
Total loan amount: $104,000
LTARV: 69.3% | LTFC: 83.9%
Interest accrual: As-disbursed (only on funds actually wired)
Example: Tier 4 (5+ Projects)
Purchase price $100,000 | Rehab budget $20,000 | ARV $150,000
Initial advance: 90% of purchase price → $90,000
Construction holdback: $20,000
Total loan amount: $110,000
LTARV: 73.3% | LTFC: 91.7%
Interest accrual: As-disbursed
Refinance using As Is value instead of Cost Basis for Initial Advance
OfferMarket normally bases your initial advance on the lower of your cost basis or As-Is value. However, for seasoned properties (3+ years owned, in habitable condition, C4 or better) in Ohio, we can lend based on As-Is market value if it exceeds your cost basis.
Criteria:
Habitable condition (minimum C4)
3+ years seasoning of ownership
Credit score: 680+
Experience: Tier 3 or higher (minimum of 4 similar verifiable rehab projects)
Payoff statement with no default interest, late fees, or extensions
Strong comps supporting higher As-Is value
Supportive scenario (e.g., property previously rented, now vacant and needing updates)
Transactions involving wholesalers, price run-ups
When your Ohio deal involves wholesalers or assignments, the entire assignment fee or double-close markup can be included in the initial advance, up to 20% of the original (A-B) purchase price.
Requirements:
Wholesaler assignment fee or markup capped at 20% (borrower covers excess above 20%)
Must be an arm’s-length transaction
Cannot finance finders or referral fees
Property not MLS-listed if price run-up included
Complete chain of contracts (A-B, B-C)
Construction Holdback
Your Ohio rehab budget is disbursed as a construction holdback. Funds are released in draws based on verified work completed:
Minimum draw: None
Maximum draw: 100% of remaining holdback
Materials delivered but not installed: Reimbursed at 50% with invoice or receipt
Inspection method: App-based (self-serve)
Draw turnaround: 0–2 business days
Draw fee: $270
Wire fee: $30
If you prefer, you can waive the holdback component entirely.
Appraisal and In-house valuation
All Ohio hard money loans require a property valuation.
In-house valuation eligibility (OfferMarket discretion):
Property: Single-family, duplex, triplex, quadplex
Borrower tier: 4 or higher
Credit: 720+
Not rural or a new market
LTARV: 70% max
Exterior appraisal scenarios (within 120 days, recertify if older):
REO sale
Foreclosure auction
Sheriff’s sale
Online auction
Bankruptcy sale
Interior appraisal
Required in all other cases
Single-family: Form 1004 + 1007 ARV
2-4 unit: Form 1025 + 216 ARV
Condo: Form 1073 + 1007 ARV
Appraisal transfers
Ordered via approved AMC
Less than 180 days old (recertify if 120–179 days)
Signed transfer letter, AIR compliant
Invoice showing appraisal paid
Scenario: Stabilized Hard Money Loan
For properties in Ohio with no deferred maintenance (condition rating C4 or better), OfferMarket will lend based on As-Is value:
| Criteria | Guideline |
|---|---|
| LTV (max) | Tier 1-2: 70%, Tier 3-5: 75% |
| LTFC (max) | Tier 1-2: 80%, Tier 3-5: 90% |
| Appraisal condition rating | C1, C2, C3, C4 |
| Loan Term (max) | 12 months |
Key Ohio Hard Money Loan Details
| Criteria | Details |
|---|---|
| Loan Amount | $25,000–$2,000,000 |
| Units per Property | 1–4 |
| Eligible Properties | Non-owner occupied residential (single-family, condos, townhomes, 2–4 units) |
| Property Minimum Size | Single-family: 700+ sqft; Condo/2–4 units: 500+ sqft per unit |
| Maximum Acreage | 5 acres |
| Loan to Cost | Up to 90% purchase, 100% rehab |
| LTARV (max) | Up to 75% |
| Down Payment (min) | $10,000 if purchase price under $100k |
| Loan Term | 12 months standard; 18–24 months with approval |
| Extensions | Available, fees apply |
| Points | 1.5–2 points ($2,000 minimum) |
| Prepayment Penalty | None |
| Occupancy | Non-owner occupied (business purpose only) |
| Transaction types | Arm’s-length purchase or refinance |
| Geographic Eligibility | All Ohio counties (rural may require experience) |
| Amortization | Interest-only (balloon payment at maturity) |
| Interest Accrual Method | < $100k: "Full Boat"; ≥ $100k: "As Disbursed" |
Extensions
Ohio hard money loans are short-term by design (12–24 months). Extensions incur extra fees and interest, increasing risk. To avoid extensions, manage your project carefully by:
Hiring experienced contractors
Keeping rehab scope reasonable
Avoiding complex permitting or zoning delays
Ensuring property accessibility
Planning multiple exit strategies
Extension Limits
| Initial Loan Term | Maximum Extension Allowed |
|---|---|
| 12 months | 6 months |
| 18 months | 9 months |
| 24 months | 12 months |
Extension Terms and Fees
| Extension Requested | Fee (percentage of total loan amount) |
|---|---|
| 3 months (1st request) | 1% |
| 3 months (2nd request) | 1.5% |
| 6 months (1st request) | 2.5% |
Extension Prerequisites
To qualify for an extension on your Ohio loan:
Confirm active builder’s-risk insurance throughout the extension period
All accrued interest and fees must be current
Ineligible Property Types
The following property types are not eligible for funding under OfferMarket’s Ohio Hard Money Loan 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
The following exception cases may be considered for Ohio loans, subject to underwriting and risk committee review:
660 - 679 guarantor credit score
Leasehold (ground rent)
Single family property 500 to 699 SqFt
2–4 unit property with one or more units 400 to 499 SqFt
Funding initial advance based on As Is value that is higher than Cost Basis
Non-arms length transactions
Financed interest payments
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 (excluding Travel/Student if not on Visa Waiver Program); US FICO required if serving as Guarantor |
| Credit Requirements | Minimum 680 FICO (exceptions between 660–679); Tri-Merge Credit Report (≤ 120 days old) |
| Liquidity Requirements | Estimated cash to close + 25% rehab budget among guarantors |
| Eligible Liquid Assets | Bank, brokerage, retirement accounts (50% haircut on retirement) |
| Guaranty Structure | Purchase: ≥ 51% of borrowing entity must guarantee; Refinance: 100% must guarantee |
| Recourse | Full recourse required |
| Net Worth | Aggregate guarantor net worth ≥ 50% of loan amount |
Liquidity verification
To ensure a safe amount of liquidity, OfferMarket verifies that Ohio guarantors have:
Minimum liquidity = estimated cash to close + 25% of rehab budget
Assets must be controlled by one or more guarantors
Eligible assets:
Bank accounts (personal, business, or other entities if documents provided)
Brokerage accounts (personal or business)
Retirement accounts (50% reduction applied)
Verification Requirements:
2 most recent statements
No seasoning required
Letter of explanation required for large deposits
Pro tip: A business bank account is not required, but it is recommended for financial clarity.
Credit and Background Items
• 3 credit scores: middle used
• 2 credit scores: lower used
• No mortgage tradelines: 6 months interest reserves required
• < 5 tradelines: 6 months interest reserves required
• Bankruptcy: must be discharged > 4 years before loan settlement
• Foreclosure: must be completed > 4 years before loan settlement
• Bankruptcy or foreclosure within 4–7 years: 3 months interest reserves required
• Mortgage lates (past 12 months): LOE required; subject to discretion
• Past due tradelines: must be paid off before funding
• Involuntary liens/judgments: must be cleared before funding
• Civil lawsuits pending: LOE required; subject to discretion
• Criminal lawsuits pending: not eligible
• Financial crime: not eligible
• Serious or repeat crime: LOE required; subject to discretion
Interest Reserves
Interest reserves refer to interest payments collected at settlement and held in servicing escrow. These reserves are applied against accrued interest before the borrower begins making monthly payments.
| Interest Reserve | Scenario |
|---|---|
| 0 month | Lender discretion |
| 1 month | Guarantor FICO 700+ |
| 3 months | Guarantor FICO 660–699 |
| 6 months | Guarantor FICO 660–699 and/or concerning credit/background items |
This helps preserve your liquidity and ensures smooth payment handling while the rehab is underway.
Financed Interest Payments
OfferMarket may allow financed interest in Ohio — meaning you don’t make monthly interest payments during the term. Instead, accrued interest is added to your payoff amount when the loan is repaid.
Example:
Loan amount: $100,000
Interest rate: 12%
Term: 9 months
Accrued interest: $9,000
Payoff:
Unpaid principal: $100,000
Unpaid interest: $9,000
This option can reduce pressure on your operating cash, especially during active renovations.
Property Sourcing Guidelines
Key considerations when sourcing properties in Ohio:
New market: If you’re investing in a new area for the first time, provide a signed General Contractor agreement or a Letter of Explanation (LOE) for why one isn’t required.
Wholesale deals and price increases: Submit complete contract chains and supporting documents to justify any markup.
Conversions and major rehabs: Provide architectural plans or engineer letters.
Required documentation includes:
Purchase contracts
Settlement statements
Payoff letters (if refinancing)
Track record
Entity formation documents
Insurance Guidelines for Hard Money Loans
You must insure your Ohio property against damage and liability. Required coverage includes builder’s risk, liability, and (if applicable) flood.
Coverages and Limits
| Coverage Type | Limit | Required |
|---|---|---|
| Dwelling | Replacement Cost or Loan Amount (0 coinsurance) | Yes |
| Liability | $1M per occurrence / $2M annual aggregate | Yes |
| Builder’s Risk | Included | Yes |
| Flood | Greater of $250,000 or loan balance (if FEMA SFHA) | Conditional |
Coverage Requirements
AM Best Rating: A- VIII or better
Policy Type: Special Form
Deductible: $1,000 to $5,000
Lender’s Designation: Mortgagee and Additional Insured
Exclusions: No windstorm, hail, or named storm exclusions
Cancellation Notice: 30 days
Tip: Install smoke detectors, locks, and security cameras immediately after closing to remain in compliance and avoid denied claims.
Frequently Asked Questions
What states does OfferMarket fund hard money loans?
OfferMarket funds hard money loans in nearly every U.S. state, including Ohio. In certain states requiring NMLS licensing for business-purpose lending, OfferMarket acts as a capital referral platform. In Ohio, we fund directly and actively work with real estate investors across all major markets including Columbus, Cleveland, Cincinnati, Dayton, Akron, Toledo, and more.
Can I do more than one hard money loan at a time?
Yes. Many OfferMarket clients in Ohio operate multiple projects simultaneously and hold multiple active loans. That said, we prioritize risk management. If your liquidity or project pace can’t support another loan, we may advise pausing to protect your financial position.
Are hard money loans commercial?
Yes. Hard money loans are business-purpose commercial loans, made to your LLC or Corporation (borrowing entity). These are not consumer-purpose loans and cannot be used for owner-occupied properties.
What is the minimum loan amount?
$25,000 is the minimum loan size. We frequently lend this amount in smaller markets across Ohio.
Which property types are eligible?
We finance non-owner occupied 1–4 unit residential properties, including:
Single-family homes
Townhomes
Condominiums (warrantable only)
2–4 unit multifamily
Not eligible in this program:
Mixed use
5+ unit residential or commercial
Commercial real estate (retail, office, industrial)
How do you calculate Loan-to-Value (LTV)?
We primarily use LTARV (Loan-to-After-Repair Value), which is:
(Initial Advance + Construction Holdback) ÷ ARV
In refinance situations, LTV may be based on the As-Is value, especially if that value exceeds your cost basis. If you’re purchasing, the initial advance is based on the lower of purchase price or As-Is valuation.
What are the credit requirements?
Minimum 680 FICO. We may consider exceptions between 660–679, especially with strong liquidity and project metrics. We pull a tri-merge credit report and evaluate only those members of the borrowing entity who will personally guarantee the loan.
What are the experience requirements?
No experience is required. Your experience determines your tier, which affects:
Your max initial advance
Eligible rehab scope
LTARV and LTFC limits
As you build experience (based on completed projects with similar or greater scope), you unlock better leverage. We verify experience via your Loan File and track record.
Does being a wholesaler count toward experience?
No. Simply wholesaling or assigning contracts doesn’t count as rehab experience because you weren’t financially responsible for completing a renovation.
What documentation is required?
OfferMarket’s Loan File system makes it easy for Ohio real estate investors to upload documents, complete applications, and accelerate approvals. Below are the required documents depending on whether you’re applying for a purchase or refinance hard money loan.
Purchase Transaction Requirements
| Loan File Section | Required Documents |
|---|---|
| Purchase Contract | Fully executed by buyer and seller |
| Credit Report | Soft tri-merge credit report for each guarantor in the borrowing entity |
| Background Report | Required for each guarantor |
| Track Record | Required for each guarantor; shows past rehab experience |
| ID Verification | Government-issued ID (e.g., driver’s license, passport, green card) |
| Borrowing Entity Docs | Articles of Organization, Operating Agreement, Certificate of Good Standing, W-9 |
| Scope of Work | Detailed rehab budget used to determine ARV |
| Appraisal Report | Ordered through OfferMarket after payment link is sent |
| Bank Statements | Two most recent statements per guarantor (personal, business, or retirement) |
| Letter of Explanation | If requested (e.g., large deposits, background issues) |
Refinance Transaction Requirements
| Loan File Section | Required Documents |
|---|---|
| Settlement Statement | Fully executed settlement statement from the original property purchase |
| Credit Report | Soft tri-merge credit report for each guarantor in the borrowing entity |
| Background Report | Required for each guarantor |
| Track Record | Required for each guarantor |
| ID Verification | Government-issued ID (e.g., driver’s license, passport, green card) |
| Borrowing Entity Docs | Articles of Organization, Operating Agreement, Certificate of Good Standing, W-9 |
| Sunk Costs | Summary of already-incurred capital expenses |
| Scope of Work | Detailed rehab budget submitted for ARV determination |
| Appraisal Report | Ordered through OfferMarket after payment link is sent |
| Bank Statements | Two most recent statements per guarantor |
| Letter of Explanation | If requested (e.g., large deposits, background items) |
Are there special requirements for loans over $1 million
Yes. Loans over $1M in Ohio are subject to tighter guidelines:
| Criteria | Requirement |
|---|---|
| Experience | Minimum Tier 3; similar price point preferred |
| Market Liquidity | At least 3 recent comps within 2 miles, sold in past 6 months |
| Credit Score | 680+ with 5+ trade lines over 24 months |
| Rural | Not allowed if property is rural per CFPB/USDA or appraisal |
| Track Record | Required for all borrowing entity members |
Glossary of Key Terms
ADU
Accessory Dwelling Unit – a self-contained unit on the same tax parcel as a single-family home.
Arms-length
A deal between unrelated parties acting in their own interest, ensuring fair pricing.
Non-Arms-length
A transaction where buyer and seller have a prior relationship, which may impact pricing or terms.
Initial Advance
The portion of the loan used toward the purchase price, wired to the title company at closing.
Construction Holdback
Loan funds allocated for the rehab budget, released in draws based on work completed.
Interest Reserves
Pre-collected interest held in escrow to cover early monthly payments or protect the lender from default risk.
LOE
Letter of Explanation – a written clarification provided for credit, financial, or background items.
LTC (Loan-To-Cost)
Loan amount divided by the total cost (purchase price + rehab budget).
LTFC (Loan-To-Full-Cost)
A stricter form of LTC used for extensive rehab projects where budget exceeds purchase price.
LTV (Loan-To-Value)
Loan amount divided by the property’s current As-Is value.
LTARV (Loan-To-After-Repair Value)
Loan amount divided by the projected value after rehab. Also called ARLTV.
As Disbursed Interest
Interest accrues only on the amount of the loan that has been drawn (not the full approved balance).
Full Boat Interest
Also called Dutch Interest – interest is charged on the entire approved loan amount from day one.
Lopsided deal
A project where the rehab budget exceeds the purchase price or As-Is value.
GC Agreement
A contract with a General Contractor outlining scope, timeline, and responsibilities for the renovation.
DSCR (Debt Service Coverage Ratio)
A key rental loan metric: Rent ÷ PITIA (Principal, Interest, Taxes, Insurance, and Association Dues).
Get an Instant Hard Money Loan Quote for Ohio
OfferMarket Capital LLC is one of the most trusted private lenders for Ohio real estate investors. Whether you’re flipping a single-family home in Cincinnati, rehabbing a duplex in Cleveland, or scaling a BRRRR portfolio across Columbus, we’re here to help you build wealth through real estate.
Thousands of investors nationwide — including in Ohio — choose OfferMarket because we offer:
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