Hard Money Loan Oregon

Last updated: May 19, 2025

At OfferMarket, our mission is to empower Oregon investors to build wealth through real estate. To support your real estate investing journey in the Beaver State, we provide an all-in-one platform:

💰 Private lending
☂️ Insurance rate shopping
🏚️ Off-market properties

Our Hard Money Loan program delivers fast, reliable, and affordable financing tailored for purchasing, refinancing, and renovating 1-4 unit residential investment properties across Oregon.

Whether you plan to flip properties for a profit or hold them as rentals and refinance into a DSCR loan, we’re excited to earn your business and help you succeed in Oregon’s dynamic real estate landscape.

Let’s explore the OfferMarket Hard Money Loan Program in Oregon!

What is a hard money loan?

A hard money loan is a short-term, asset-backed loan secured by Oregon residential real estate, typically 1-4 unit properties. It’s designed to finance the purchase, refinance, and rehab of properties with the goal of reselling for profit or holding as a rental.

In Oregon, hard money loans are frequently called “bridge loans” or “fix and flip loans”—terms used interchangeably among local real estate investors and private lenders.

Hard money loan scenarios in Oregon

Oregon real estate investors commonly utilize hard money loans in scenarios such as:

• Buying and renovating a distressed or outdated property in Portland, Salem, or Eugene, allowing you to avoid using excessive personal cash

• Refinancing a distressed property purchased with cash in fast-paced Oregon markets, then completing renovations

• Refinancing existing loans to extend rehab timelines or funds to complete projects in cities like Bend or Medford

• Purchasing properties “as-is” below market value in growing areas such as Hillsboro, with no intention to rehab, aiming to sell quickly

• Refinancing cash purchases to tap equity for new Oregon real estate investments without rehabbing

• Refinancing completed rehabs to gain more time before selling or refinancing

How it works in Oregon

A hard money loan consists of two main parts:

• Initial Advance – funds used to cover the purchase price, wired directly to the title company at closing.
• Construction Holdback – funds reserved for rehab expenses, disbursed through draw reimbursements as work progresses.

In Oregon, many investors use both components to maximize leverage while minimizing personal cash outlay. Others opt for just the initial advance or construction holdback depending on their project needs or market strategy.

Your exit plan may involve flipping for profit or holding and refinancing into a long-term loan such as a DSCR loan. Oregon’s market fluctuations often encourage flexible exit strategies—whether that’s a BRRRR method in neighborhoods like Portland’s Alberta Arts District or flipping in smaller towns.

Who uses hard money loans in Oregon?

• Fix and flip investors targeting hot Oregon markets like Portland’s inner city or Salem’s suburban areas

• Rental property investors using the BRRRR method to build portfolios across Oregon’s growing cities and towns

Our Fix and Rent bundle pairs a hard money loan for purchase and rehab with a discounted DSCR loan for refinancing, ideal for Oregon investors diversifying their strategies.

Hard Money Loan Program Guidelines for Oregon

Project Eligibility in Oregon

Our mission is to help you build wealth through real estate investing in Oregon, and that means managing risk effectively in the local market. Across all our lending activity in Oregon—from the urban hubs of Portland and Eugene to smaller communities like Bend and Ashland—less than 0.5% of loans have ever defaulted or required foreclosure. We take immense pride in that success and are dedicated to helping you avoid pitfalls.

Borrowers new to Oregon real estate who take on complex, heavy rehab projects face the highest risk of delays, budget overruns, and market shifts. This risk is especially acute during economic uncertainty or in areas with longer permitting times like some parts of Lane or Clackamas counties.

As your hard money lender, we partner with you not just as a capital source but as an advisor and risk manager, helping set clear expectations so you can grow your Oregon real estate business safely. Below, learn about our structured rehab scope classifications and how eligibility ties to your experience.

Initial Advance in Oregon

The initial advance amount depends on borrower experience and deal specifics, including your track record investing in Oregon properties over the past 24 months and rehab experience in the last 5 years. We require a minimum credit score of 680, with a preference for guarantors scoring 720+. Licensed Realtors, General Contractors, and Professional Engineers in Oregon markets like Portland or Salem may qualify for higher leverage.

If the contract purchase price exceeds our appraisal or in-house valuation “As Is” value, the initial advance is based on the lower valuation, not contract price.

Your exit plan impacts the advance: if you plan to sell, your projected gross margin should be at least 30%, with a minimum $15,000 profit. For rental refinance strategies, a DSCR of at least 1.1 after repairs is required. Use our Fix and Flip and DSCR calculators tailored for Oregon market data to analyze your options.

Properties designated rural in Oregon will have stricter advance limits and require a minimum experience tier of 3.

Experience-based Tiers for Oregon

Initial Advance by Tier in Oregon

(*) Exception basis available for borrowers with excellent credit and liquidity in Oregon.

Adjustments to Initial Advance in Oregon

Rehab Scope Classification in Oregon

(*) “Lopsided deals” occur when rehab budget exceeds As Is or purchase price. Oregon’s housing markets, especially in metro areas, often see this on undervalued homes needing major work.

Rehab Scope Eligibility for Oregon Investors

LTARV Limits for Oregon

LTFC Limits for Oregon

For extensive rehab scopes where rehab exceeds purchase price or As Is value, loan-to-full-cost (LTFC) caps ensure Oregon investors retain significant equity, limiting lender risk:

Example: No Experience in Oregon

Purchase price: $100,000
Tier: 1 (0 verifiable Oregon rehab projects)
Credit score: 695
Rehab budget: $24,000
ARV: $150,000
Initial advance: $75,000 (75%)
Construction holdback: $24,000
Total loan amount: $99,000
LTARV: 66%
LTFC: 79.8%
Interest accrual: Full boat

Example: No Experience, Excellent Credit in Oregon

Purchase price: $100,000
Tier: 1 (0 verifiable Oregon rehab projects)
Credit score: 750
Rehab budget: $24,000
ARV: $150,000
Initial advance: $80,000 (80%)
Construction holdback: $24,000
Total loan amount: $104,000
LTARV: 69.33%
LTFC: 83.9%
Interest accrual: As disbursed

Example: 5 Projects Experience in Oregon

Purchase price: $100,000
Tier: 4 (5 verifiable Oregon rehab projects)
Credit score: 750
Rehab budget: $20,000
ARV: $150,000
Initial advance: $90,000 (90%)
Construction holdback: $20,000
Total loan amount: $110,000
LTARV: 73.33%
LTFC: 91.67%
Interest accrual: As disbursed

Refinance Using As Is Value Instead of Cost Basis for Initial Advance in Oregon

Our underwriting focuses on lending within your cost basis—purchase price plus sunk costs—to ensure you maintain equity ("skin in the game"). For refinance situations in Oregon where your property has appreciated beyond cost basis and you want to leverage its As Is value for rehab funding, OfferMarket will carefully review:

• The property must be habitable (condition rating C4 or better) and not in disrepair

• Property should be seasoned at least 3 years in Oregon markets

• Previous lender payoff statements must be free of default interest, extension fees, or late fees

• Credit score minimum of 680

• Experience Tier 3 or above (4+ similar rehab projects in Oregon)

• Market comps supporting higher As Is value

• Supportive scenarios like previously rented properties now needing renovation before sale

Transactions Involving Wholesalers in Oregon

If your transaction involves a wholesaler, OfferMarket can include up to 20% of the purchase price as an assignment fee or double-close price increase for initial advance purposes, provided:

• The property was not listed on MLS

• Full chain of contracts and wholesaler’s operating agreement are provided

• No finder’s or referral fees are financed

• Transaction is arm’s length

For example:
A-B Contract (original seller to wholesaler): $100,000
B-C Contract (wholesaler to buyer): $125,000
As Is Value: $125,000
Value basis for initial advance: $120,000

Construction Holdback in Oregon

Your rehab funds are disbursed through draw requests based on verified progress against your approved scope. If you have sufficient liquidity and choose to self-fund your rehab, you may opt out of construction holdbacks.

Note: For Oregon loans $100,000 and above, interest is charged only on funds disbursed (“As Disbursed”).

Appraisal and In-house Valuation in Oregon

All Oregon hard money loans require property valuation via either a 3rd-party interior or exterior appraisal or an in-house valuation depending on your scenario.

In-house Valuation Criteria in Oregon

Exterior Appraisal Acceptable Scenarios in Oregon

• REO sales

• Foreclosure auctions

• Sheriff’s sales

• Online auctions

• Bankruptcy sales

Exterior appraisals must be dated within 120 days of settlement; 120–180 days require recertification.

Interior Appraisal Required in Oregon

If the property does not meet exterior or in-house valuation criteria, a full interior appraisal is required. Common appraisal forms:

OfferMarket orders appraisals through AMC. You’ll pay the appraisal invoice, and your loan will be on hold until paid.

Appraisal Transfer in Oregon

If you have an appraisal not ordered by OfferMarket, it can be transferred for use on your Oregon hard money loan if all these conditions are met:

• Appraisal was ordered through an approved appraisal management company (AMC)

• Appraisal is less than 180 days old at loan closing

• If 120 to 179 days old, the appraisal is re-certified at closing

• The transferring lender provides OfferMarket with:

  • Signed transfer letter certifying compliance with Appraiser Independence Requirements (AIR)

  • Appraisal report in PDF and XML formats

  • Paid appraisal invoice

Scenario: Stabilized Hard Money Loan in Oregon

If your Oregon property is in good condition (appraisal condition rating C1 to C4) with no deferred maintenance, OfferMarket may fund up to 75% of the As Is value under a stabilized loan scenario, meaning the property is ready to rent or sell immediately.

Key Loan Details for Oregon Hard Money Loans

Extensions for Oregon Hard Money Loans

Hard money loans are designed to be short-term (12 to 24 months), with most Oregon loans paid off well before term end. Extensions are discouraged as they add fees, interest, and risk foreclosure if unpaid after extension limits.

Avoid extensions by carefully managing:

• Contractor experience and references in Oregon

• Rehab scope aligned with your Oregon market knowledge and liquidity

• Projects in areas with slow zoning or permitting like parts of rural Oregon

• Access to property without tenant complications or holdovers

• Having a dual exit strategy—sell or refinance

Extension Limits for Oregon

Extension Terms and Fees for Oregon

Extension Prerequisites

You must maintain a builder’s risk insurance policy covering the extension period to qualify for an extension.

Ineligible Property Types in Oregon

The following property types do not qualify under our Oregon hard money loan program:

• Mixed-use properties

• Multifamily with 5 or more units

• Condotels

• Co-ops

• Mobile or manufactured homes

• Commercial properties

• Cabins or log homes

• Properties with oil or gas leases

• Operating farms, ranches, orchards

• Vacation or seasonal rentals

• Unique, exotic, or luxury homes

• Properties on unpaved or dirt roads

Borrower and Guarantor Requirements in Oregon

Credit and Background Items

• If three credit scores are returned on tri-merge report, OfferMarket uses the middle score; if two, the lowest score is used.

• If no mortgage tradelines are present, six months of interest reserves are required.

• If fewer than five tradelines appear on credit report, six months of interest reserves must be held.

• Bankruptcies must be discharged at least four years prior to Oregon loan settlement date.

• Foreclosures must be completed at least four years prior to settlement.

• For bankruptcies or foreclosures between four and seven years old, at least three months of interest reserves are required.

• Recent late mortgage payments within the past 12 months require a Letter of Explanation and may be subject to underwriting discretion.

• Any past due balances on mortgage or non-mortgage tradelines (HELOC, credit cards, etc.) must be fully paid before funding.

• Involuntary liens or judgments (tax liens, child support) must be resolved before funding.

• Pending civil lawsuits require a Letter of Explanation and are subject to loan committee discretion.

• Pending criminal lawsuits disqualify the borrower from funding.

• Background involving financial crimes or serious/repeat offenses also disqualify the borrower.

• Repeat criminal offenses require a Letter of Explanation and are reviewed on a case-by-case basis.

Interest Reserves

Interest reserves are funds collected on the settlement statement and held in servicing escrow. These reserves cover accrued interest before you begin making monthly payments from your own bank account.

Financed Interest Payments

To protect your liquidity during the rehab period and avoid negatively impacting your credit score through extensive credit card use, OfferMarket offers financed interest payments. This means instead of paying monthly interest, your accrued interest is added to the payoff balance.

Example for Oregon investor:

• Loan amount: $100,000

• Interest rate: 12% annually

• Loan held for 9 months

• Accrued interest: $9,000 (calculated as $100,000 * 12% ÷ 12 * 9 months)

Your payoff statement will show:

• Unpaid principal balance: $100,000

• Unpaid interest balance: $9,000

Property Sourcing Guidelines for Oregon

• New market transactions in Oregon require a General Contractor (GC) agreement or a Letter of Explanation (LOE) justifying why a GC is not needed.

• Properties with prior sale price increases, wholesale deals, or non-arms length transactions need additional documentation and underwriting review.

• Projects involving condos, conversions, or extensive renovation require architect or engineer letters or permits.

• All submissions should include purchase contracts, settlement statements, payoff letters (if applicable), track record, and formation documents to ensure smooth underwriting.

Insurance Guidelines for Hard Money Loans in Oregon

Protecting your property and business is essential. Oregon’s hard money loans require specific insurance coverage designed for properties under construction or renovation, commonly called Builder’s Risk or Fix and Flip insurance.

Coverages and Limits

Coverage Details

💡 Pro tip: Once you take ownership of your Oregon property, immediately install smoke detectors, secure locks, and set up security cameras to comply with insurance requirements. This prevents denied claims later on.

Frequently Asked Questions

What states does OfferMarket fund hard money loans?

• Arizona*
• Alabama
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Mississippi
• Missouri
• Minnesota*
• Montana
• Nebraska
• Nevada*
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota*
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota*
• Tennessee
• Texas
• Utah
• Vermont*
• Virginia
• Washington
• Washington DC
• West Virginia
• Wisconsin
• Wyoming

(*) In states where NMLS license is required for business purpose lending or we do not directly lend, OfferMarket operates as a rate shopping service and refers your loan to a licensed capital provider.

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

Yes, you can have multiple hard money loans active simultaneously in Oregon. It is common for OfferMarket clients to manage several loans at once. However, we prioritize your risk management and may discuss concerns if your liquidity or project pace cannot safely support additional loans.

Are hard money loans commercial?

Yes. Hard money loans are business purpose loans issued to your borrowing entity and are considered commercial loans under Oregon law.

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 in Oregon, including single-family homes, townhomes, small multifamily units (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 under this program but are available through other OfferMarket loan products.
10+ unit residential and non-residential commercial properties are also not eligible.

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

LTV most commonly refers to loan-to-after-repair-value (LTARV) in Oregon. The initial advance is based on the lower of the contract purchase price or the As Is value determined by appraisal or in-house valuation. LTARV is the total loan amount (initial advance + construction holdback) divided by the after-repair value.

What are the credit requirements?

A minimum FICO score of 680 is required. Scores between 660 and 680 may be considered on an exception basis. We consider the credit scores of members personally guaranteeing the loan.

What are the experience requirements?

Experience is not required. Verifiable rehab experience on similar or larger projects allows for higher leverage per our Oregon experience Tier system.

Does being a wholesaler count towards experience?

No. Wholesale deals do not count as experience since the wholesaler does not assume rehab responsibility.

What documentation is required?

Purchase Transaction Requirements

Refinance Transaction Requirements

Are there special requirements for loans over $1M?

Yes, loans over $1 million have adjusted underwriting guidelines in Oregon:

Glossary of Key Terms

Instant Hard Money Loan Quote in Oregon

Our private lending division, OfferMarket Capital LLC, is a leading private lender specializing in hard money and DSCR loans for Oregon’s 1-4 unit residential real estate investors. We are committed to helping you build wealth through Oregon real estate and look forward to partnering on your next transaction.

Thousands of Oregon investors rely on OfferMarket every month. Membership is completely free and provides valuable benefits including:

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

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