Hard Money Loan Rhode Island
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Last updated: May 19, 2025
At OfferMarket, our mission is to empower Rhode Island real estate investors to build wealth through strategic property investments. To support your investing journey in Rhode Island, we provide a comprehensive all-in-one platform tailored for local investors:
💰 Private lending
☂️ Insurance rate shopping
🏚️ Off market properties
Our Rhode Island Hard Money Loan program delivers fast, dependable, and affordable financing designed specifically for the Ocean State’s unique residential real estate market. Whether you're purchasing, refinancing, or rehabbing 1-4 unit investment properties anywhere from Providence to Warwick, Newport, or Cranston, we’re here to support your success.
Whether your plan is to flip your Rhode Island property for profit or rent and refinance into a long-term DSCR loan, OfferMarket is excited to earn your trust and help you achieve your financial goals.
Let’s explore the OfferMarket Rhode Island Hard Money Loan Program!
What is a hard money loan?
A hard money loan is a short-term, asset-backed loan secured by 1-4 unit residential real estate — ideal for Rhode Island properties that you want to buy, refinance, and renovate. These loans help you finance rehabs to resell for profit or hold as rental investments.
Often called “bridge loans” or “fix and flip loans,” hard money loans are a common tool among Rhode Island real estate investors and private lenders looking for flexibility and speed.
Hard money loan scenarios in Rhode Island
In Rhode Island’s real estate market, investors typically use hard money loans for:
Buying and renovating older or distressed homes in neighborhoods like Federal Hill, South Providence, or Pawtucket, avoiding tying up all your cash upfront
Refinancing cash purchases of off market Rhode Island properties so you can complete rehab projects in areas like East Greenwich or Johnston
Refinancing existing loans on properties needing rehab in markets such as Newport County or West Warwick
Buying properties as-is below market value, perhaps in less competitive Rhode Island towns, intending to sell quickly for profit
Cash-out refinancing of below-market purchases to free capital for additional Rhode Island deals
Refinancing fully rehabbed properties in Providence or Cranston while you prepare for sale or refinance
How it works
A Rhode Island hard money loan has two main parts:
- Initial Advance – This portion covers the purchase price of the property and is wired directly to the title company at settlement.
- Construction Holdback – This portion funds the rehab work and is distributed to you through draw reimbursements as you complete renovations.
Our Rhode Island hard money loans offer flexibility tailored to your project’s needs. You can opt for just an initial advance if you’re funding the rehab yourself, or just a construction holdback if you already own the property and need funds to renovate.
Most Rhode Island investors combine both to maximize leverage and minimize personal cash use. Some prefer only the initial advance when no rehab is planned. Others who paid cash upfront may seek a construction holdback to finance renovation costs.
Your exit plan is typically to flip the Rhode Island property for profit or to hold as a rental and refinance with a longer-term DSCR loan. Many local investors adapt their exit strategies as market conditions in Providence, Warwick, or other parts of the state change — flexibility is key.
For example, you might begin with a plan to BRRRR (buy, rehab, rent, refinance, repeat) in a growing area like Cranston but switch to selling if the rental demand softens. Or you could start with a flip in Newport but hold and rent if the market cools, refinancing into a DSCR loan with low prepayment penalties to sell later when the market heats back up.
These dual exit strategies help you minimize risk while capitalizing on Rhode Island’s dynamic real estate market.
Who uses hard money loans in Rhode Island?
Fix and flip investors (“flippers”) who renovate and resell homes in Rhode Island neighborhoods like South Kingstown or East Providence
Rental property investors (BRRRR method) building cash flow by buying, rehabbing, and holding rental homes in Rhode Island’s urban and suburban areas
Many Rhode Island investors employ a mix of flipping and renting strategies depending on how deals unfold and local market trends.
Hard Money Loan Program Guidelines for Rhode Island
| Criteria | Guideline |
|---|---|
| Loan amount (minimum) | $25,000 |
| Loan amount (maximum) | $2,000,000 |
| ARV (minimum) | $100,000 |
| Experience | Not required |
| Credit score (minimum) | 680 |
| Borrowing entity | LLC or Corporation |
| Initial advance | Up to 90% |
| Construction holdback | Up to 100% |
| LTARV (maximum) | 75% |
| Interest rate | Get instant quote |
| Origination fee | 1.5 to 2 points |
| Term | 12 to 24 months |
| Points out | None |
| Prepayment penalty | None |
| Structure | Interest-only with balloon payment |
| Recourse | Full (51% of borrowing entity must guarantee) |
| Exit strategy: Sale | Minimum 30% ROI |
| Exit strategy: Refinance | Minimum 1.1 DSCR after repairs |
| Valuation | Appraisal report or In-house valuation |
| SqFt (minimum) | Single family: 700+ |
| 2-4 unit: 500+ per unit | |
| Condo: 500+ | |
| Acreage (maximum) | 5 |
| Interest accrual | Under $100,000 loan: full boat |
| $100,000+ loan: as disbursed | |
| Advanced draws | Lender discretion |
| Down payment (minimum) | $10,000 |
Our focus is helping Rhode Island investors manage risk while growing their real estate portfolio. We pride ourselves on a default rate well below 0.5%, which reflects our commitment to responsible lending and investor success.
Project Eligibility in Rhode Island
We caution new investors against taking on extensive rehab projects in Rhode Island without adequate experience, as delays and cost overruns are common, especially in markets with variable permitting times such as Providence and Newport.
Our role as your Rhode Island hard money lender is to be a partner—advisor, risk manager, and capital provider—helping you set realistic expectations for your projects and growth.
Below is our rehab scope classification and eligibility based on your experience level, designed to protect your investment in the Rhode Island market.
Initial Advance
The initial advance amount for your Rhode Island hard money loan depends on your experience, credit, and the specifics of your deal. We consider how many investment properties you have owned in the last 24 months and the number of verifiable rehab projects completed in Rhode Island or comparable markets over the past five years.
A minimum credit score of 680 is required, with a strong preference for personal guarantors to have 720 or higher. Licensed Rhode Island Realtors, General Contractors, and Professional Engineers may qualify for increased leverage.
If your purchase price exceeds our appraisal or in-house valuation’s opinion of “As Is” value, the initial advance will be based on the lower “As Is” value rather than your contract’s purchase price.
Your exit strategy also affects the initial advance. If you plan to sell, a minimum projected gross margin of 30% and $15,000 profit are expected. If you plan to rent and refinance, or if your flip exit strategy does not meet your desired loan amount, then a minimum post-rehab Debt Service Coverage Ratio (DSCR) of 1.1 is required. Use our calculators to analyze your exit strategies.
Properties designated as rural within Rhode Island will have limited initial advances and require a minimum of 3 years of experience.
Experience-based Tiers
| Tier | Verifiable Experience (Completed Rhode Island or comparable projects) |
|---|---|
| 1 | 0 |
| 2 | 1 to 2 |
| 3 | 3 to 4 |
| 4 | 5 to 9 |
| 5 | 10+ |
Initial Advance by Tier
| Tier | Initial Advance (% of purchase price) |
|---|---|
| 1 | 80%* |
| 2 | 85% |
| 3 | 85% |
| 4 | 90% |
| 5 | 90% |
*85% available on an exception basis for borrowers with excellent credit and liquidity.
Adjustments to Initial Advance
| Scenario | Adjustment |
|---|---|
| Credit score less than 720 | -5% |
| Full gut rehab | -5% |
| New market (RI regions less active for investment) | -5% |
| Licensed Rhode Island Realtor | Up to +5% |
| Licensed Rhode Island General Contractor | Up to +10% |
| Licensed Rhode Island Professional Engineer | Up to +10% |
| Rural designation in Rhode Island | -20% (with 3+ experience) |
Rehab Scope Classification
| Rehab Scope | Definition |
|---|---|
| Light | Rehab budget less than 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 (additions, expansions, ADUs, or low purchase price “lopsided deals”) |
*Lopsided deals occur when rehab costs exceed As Is or purchase price values.
Rehab Scope Eligibility
| Tier | Heavy | Experience | Light | Moderate | Extensive |
|---|---|---|---|---|---|
| 1 | Ineligible | 0 | Eligible | Ineligible | Ineligible |
| 2 | Eligible | 1–2 | Eligible | Eligible | Ineligible |
| 3 | Eligible | 3–4 | Eligible | Eligible | Eligible |
| 4 | Eligible | 5–9 | Eligible | Eligible | Eligible |
| 5 | Eligible | 10+ | Eligible | Eligible | Eligible |
LTARV Limits (Loan to After Repair Value)
| Tier | Experience | Light | Moderate | Heavy | Extensive |
|---|---|---|---|---|---|
| 1 | 0 | 70% | Ineligible | Ineligible | Ineligible |
| 2 | 1–2 | 70% | 70% | 70% | Ineligible |
| 3 | 3–4 | 75% | 75% | 75% | 70% |
| 4 | 5–9 | 75% | 75% | 75% | 70% |
| 5 | 10+ | 75% | 75% | 75% | 70% |
LTFC Limits
Loan to Full Cost applies only to extensive rehab scopes where rehab costs exceed purchase price or As Is value.
| Tier | Experience | Extensive LTFC Limit |
|---|---|---|
| 1 | 0 | Ineligible |
| 2 | 1–2 | Ineligible |
| 3 | 3–4 | 85% |
| 4 | 5–9 | 90% |
| 5 | 10+ | 90% |
Example: No Experience
Purchase Price: $100,000
Tier: 1 (0 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
Example: No Experience, Excellent Credit
Purchase Price: $100,000
Tier: 1
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 Years Experience
Purchase Price: $100,000
Tier: 4 (5 verifiable 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
For Rhode Island properties that are seasoned and worth more “As Is” than your cost basis, OfferMarket may consider lending based on the higher “As Is” value to support renovation projects.
To qualify:
Property must be habitable (condition rating C4 or better), not in disrepair
Property must be at least 3 years seasoned in the Rhode Island market
Payoff statement from prior lender should be clear of penalties or fees
Guarantor credit score 680+
Minimum Experience Tier 3 (at least 4 similar rehab projects)
Strong market comps supporting higher “As Is” value in the local RI neighborhood
Property must be supported by a viable rehab and resale or refinance plan
Wholesaler Transactions in Rhode Island
If your transaction involves wholesaling:
Assignment fees or double-close price run-ups may be included in your cost basis up to 20% of the original purchase price
OfferMarket will review the chain of contracts and require documentation to verify arm’s length transactions
Fees like finders’ or referral fees are not financed
Transactions involving Rhode Island MLS-listed properties may have restrictions
Construction Holdback
The construction holdback in your Rhode Island hard money loan is distributed through draw requests and reimbursements based on verified progress against your approved rehab scope.
If you have enough liquidity to cover rehab costs without a holdback, you can opt to exclude this component. For loans above $100,000, interest is charged only on funds disbursed for rehab, reducing your carrying costs.
| Criteria | Guideline |
|---|---|
| Minimum draw amount | None |
| Maximum draw amount | Up to 100% of remaining holdback |
| Minimum number of draws | 0 |
| Maximum number of draws | None |
| Materials delivered, not installed | 50% reimbursement (receipt required) |
| Draw inspection | Self-serve app-based |
| Draw turnaround | 0 to 2 business days |
| Draw fee | $270 |
| Wire fee | $30 |
Appraisal and In-House Valuation for Rhode Island Properties
Every Rhode Island hard money loan requires a valuation to ensure proper underwriting.
In-House Valuation Eligibility
| Criteria | Requirement |
|---|---|
| Property Type | Single family, Duplex, Triplex, Quadplex |
| Experience Tier | 4 or higher |
| Credit Score | 720+ |
| Rural Designation | No |
| New Market | No |
| Maximum LTARV | 70% |
OfferMarket may require a third-party interior or exterior appraisal at its discretion.
Exterior Appraisal
Exterior appraisals are accepted in Rhode Island in scenarios such as:
REO sales
Foreclosure auctions
Sheriff’s sales
Online auctions
Bankruptcy sales
Exterior appraisals must be dated within 120 days of settlement; if 120–180 days old, recertification is required.
Interior Appraisal
Full interior appraisals are required for most other Rhode Island transactions not qualifying for exterior appraisal or in-house valuation.
| Property Type | Appraisal Forms Required |
|---|---|
| Single family | 1004 + 1007 ARV with As Is value (non-gridded) |
| 2-4 Unit | 1025 + 216 ARV with As Is value (non-gridded) |
| Condo | 1073 + 1007 ARV with As Is value (non-gridded) |
Appraisals ordered by OfferMarket are managed via approved appraisal management companies. Borrowers pay appraisal fees directly.
Appraisal Transfer
Rhode Island borrowers may transfer existing appraisals if:
Ordered by an approved appraisal management company
Less than 180 days old at closing
Recertified if between 120 and 179 days old
Full documentation including signed transfer letter, appraisal report (PDF and XML), and proof of payment is provided
Scenario: Stabilized Hard Money Loan in Rhode Island
If the Rhode Island property is in good condition (appraisal condition rating C4 or better) with no deferred maintenance, we will fund up to 75% of the As Is value.
| Criteria | Guideline |
|---|---|
| Maximum LTV | Tier 1 & 2: 70% |
| Tier 3–5: 75% | |
| Maximum LTFC | Tier 1 & 2: 80% |
| Tier 3–5: 90% | |
| Appraisal Condition | C1, C2, C3, or C4 |
| Loan Term (max) | 12 months |
Key Loan Details for Rhode Island Hard Money Loans
| Criteria | Details |
|---|---|
| Loan Amount | $25,000 to $2,000,000* |
| Units per Property | 1–4 |
| Eligible Property Types | Non-owner occupied 1-4 unit residential, including single family, small multifamily, condos, townhomes |
| Property Minimum Size | Single Family: ≥700 SQFT |
| Condo and 2–4 Unit: ≥500 SQFT per unit | |
| Max Acreage | 5 acres |
| Loan to Cost (LTC) | Up to 90% purchase, 100% rehab |
| Loan to ARV (LTARV) | Up to 75% |
| Down Payment | Minimum $10,000 for purchase under $100K |
| Loan Term | 12 months standard; 18-24 months available |
| Extensions | Up to 50% of original term (fees apply) |
| Points | 1.5 to 2 points ($2,000 minimum) |
| Prepayment Penalty | None |
| Occupancy | Non-owner occupied, business purpose only |
| Transaction Types | Arms-length purchase or refinance |
| Geographic Region | Rhode Island |
| Amortization | Interest-only with balloon payment at maturity |
| Interest Accrual Method | < $100K: full boat; ≥ $100K: as disbursed |
Extensions
Hard money loans in Rhode Island are designed to be short-term, typically 12 to 24 months, with most loans repaid within 12 months. Extensions should be avoided as they increase fees, interest costs, and foreclosure risk if repayment is not completed on time.
To minimize the need for extensions in Rhode Island projects, avoid:
Working with contractors who have limited experience or poor references in Rhode Island markets
Taking on rehab scopes that exceed your experience or liquidity
Investing in areas with slow zoning or permitting processes (some Rhode Island towns have lengthy permitting timelines)
Deals where you lack immediate property access, such as inherited tenants with existing leases or eviction requirements
Projects without clear dual exit strategies (sale or refinance)
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 Term | Fee |
|---|---|
| 3 months (1st request) | 1% of total loan amount |
| 3 months (2nd request) | 1.5% of total loan amount |
| 6 months (1st request) | 2.5% of total loan amount |
Extension Prerequisites
To qualify for a loan extension on your Rhode Island hard money loan, you must verify that your builder’s risk insurance policy remains active throughout the extension period.
Ineligible Property Types
The following property types are not eligible for funding under our Rhode Island hard money loan program:
Mixed-use properties
Multifamily properties with 5 or more units
Condotels
Co-ops
Mobile or manufactured homes
Commercial real estate
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 with unpaved or dirt roads
Exception Scenarios for Rhode Island Loans
We consider exceptions in specific cases such as:
Guarantor credit scores between 660 and 679
Leasehold (ground rent) properties
Single-family homes between 500 and 699 square feet
2-4 unit properties with one or more units between 400 and 499 square feet
Funding initial advances based on higher As Is values than cost basis
Non-arms-length transactions
Financed interest payments
Borrower and Guarantor Requirements in Rhode Island
| Item | Requirements / Eligibility |
|---|---|
| Borrowing Entities | LLC or Corporation (nonprofits are not eligible) |
| Eligible Borrowers | US citizens, US permanent residents, qualified foreign nationals |
| Foreign Nationals | Valid passport and US visa (excluding some travel/student visas) |
| Credit Score | Minimum 680 FICO (exceptions considered 660–679) |
| Liquidity | Estimated cash to close plus 25% of rehab budget |
| Guaranty Structure | Purchase: at least 51% of borrowing entity must guarantee; Cash-out refinance: 100% guarantee required |
| Credit & Background | No recent bankruptcies or foreclosures under 4 years; Reserves may be required for credit concerns |
Liquidity Verification in Rhode Island
To ensure adequate liquidity, we verify that guarantors maintain liquid assets covering the estimated cash to close plus 25% of the rehab budget. Eligible liquid assets include:
Personal or business bank accounts
Brokerage accounts
Retirement accounts (subject to 50% haircut due to restrictions)
Verification requires the two most recent statements, with no seasoning required for new accounts and explanations for large deposits.
You do not need a business bank account, though it’s recommended for accounting and risk management purposes.
Credit and Background Items
If three credit scores appear on the tri-merge report, we use the middle score; if two, the lower score
Six months of interest reserves are required if no mortgage tradelines or fewer than five tradelines appear
Bankruptcy must be discharged at least four years before settlement
Foreclosure completion must be at least four years prior
If bankruptcy or foreclosure occurred 4-7 years prior, a minimum of three months’ interest reserves is required
Late mortgage payments in the past 12 months require letters of explanation and may affect eligibility
Past due balances must be paid before funding
Liens or judgments (tax, child support) must be resolved before funding
Pending civil lawsuits require explanation and review; criminal lawsuits or financial crimes disqualify applicants
Repeat offenses or serious crimes may require explanation or lead to ineligibility
Interest Reserves
Interest reserves are amounts collected at closing and held in escrow to cover accrued interest before your monthly payments begin.
| Interest Reserve | Scenario |
|---|---|
| 0 months | Lender discretion |
| 1 month | Guarantor FICO 700+ |
| 3 months | Guarantor FICO 660–699 |
| 6 months | Guarantor FICO 660–699 and/or concerns on credit or background reports |
Financed Interest Payments
To protect your liquidity and credit score during rehab, you may qualify for financed interest payments, which add accrued interest to your payoff balance instead of requiring monthly payments.
Example:
Loan amount: $100,000
Interest rate: 12%
Months held: 9
Accrued interest: $9,000
Payoff statement: $100,000 principal + $9,000 interest
Property Sourcing Guidelines for Rhode Island
Key points to note when sourcing properties in Rhode Island:
New market transactions require a General Contractor agreement or explanation for absence
Deals with previous price increases, wholesaling, or non-arms-length transactions need extra documentation
Condos, conversions, and projects with significant renovations require architect or engineer letters or permits
Submissions must include contracts, settlement statements, payoff letters (if applicable), track records, and formation documents
Insurance Guidelines for Rhode Island Hard Money Loans
Insuring your Rhode Island investment property protects against damage, loss, and liability. Hard money loan insurance typically includes Builders Risk or Fix and Flip insurance, specialized for properties under construction or vacant.
Insurance Coverages and Limits
| Coverage Type | Limit | Required |
|---|---|---|
| Dwelling | Replacement cost or loan amount (zero coinsurance) | Yes |
| Liability | $1 million per occurrence / $2 million aggregate | Yes |
| Builders Risk | Included | Yes |
| Flood | Greater of $250,000 or loan balance (if in FEMA flood zone) | Conditional |
Insurance Coverage Details for Rhode Island Hard Money Loans
To protect your investment in Rhode Island, your insurance policy must meet the following criteria:
AM Best Rating: Insurer must have a rating of A- VIII or higher, ensuring financial stability and reliability.
Policy Type: Special Form (also called “All Risk”) coverage is required to cover a broad range of risks during renovation and ownership.
Deductible: Typically ranges from $1,000 to $5,000, depending on the property and insurer.
Lender’s Designation: OfferMarket must be named as Mortgagee and Additional Insured on the policy.
Exclusions: No exclusions for windstorm, hail, or named storms are permitted in Rhode Island, considering the state’s coastal weather risks.
Cancellation: Insurer must provide OfferMarket with a 30-day cancellation notice to protect the lender’s interest.
Pro Tip: Upon taking ownership of your Rhode Island property, promptly install smoke detectors, secure locks, and security cameras. These steps help satisfy insurance requirements and prevent claim denials due to negligence.
Frequently Asked Questions about Hard Money Loans in Rhode Island
What states does OfferMarket fund hard money loans in?
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
Pennsylvania
Rhode Island
South Carolina
Tennessee
Texas
Virginia
Washington
West Virginia
Wisconsin
Wyoming
(This list is not exhaustive; please consult OfferMarket for confirmation.)
In certain states like Arizona, Minnesota, Nevada, Oregon, Utah, and Vermont, where NMLS licensing or specific regulatory requirements apply to business-purpose lending, OfferMarket operates primarily as a rate shopping platform, referring clients to licensed capital providers rather than directly funding loans.
Can I have more than one hard money loan at a time?
Yes. Rhode Island investors often hold multiple hard money loans simultaneously. However, we prioritize your risk management and may discuss concerns if your liquidity or project pace does not support additional loans safely.
Are hard money loans considered commercial?
Yes. Because they are issued to business entities such as LLCs or corporations, hard money loans are classified as commercial loans.
What is the minimum loan amount for Rhode Island hard money loans?
The minimum loan amount is $25,000, making it accessible for a range of Rhode Island property investment sizes.
Which Rhode Island property types are eligible?
We finance non-owner occupied residential properties including:
Single-family homes
2-4 unit multifamily properties
Warrantable condominiums and townhomes
Properties outside these categories, such as commercial, mixed-use, or unique homes, are generally ineligible.
How is Loan-to-Value (LTV) calculated for Rhode Island loans?
We typically use Loan-to-After-Repair-Value (LTARV), the ratio of your loan (initial advance plus construction holdback) to the property’s estimated value after rehab, based on appraisal or in-house valuation.
What are the credit requirements?
A minimum FICO score of 680 is required. Borrowers with scores between 660 and 680 may qualify on an exception basis. Credit evaluations focus on guarantors who will personally guarantee the loan.
Is prior experience required?
Experience is not mandatory but helps increase leverage. Experience is measured by verifiable completed rehab projects similar in scope and price to your Rhode Island deal.
What are the Documentation Requirements for Rhode Island Loan Applications
To ensure smooth loan processing and approval, provide the following documents:
Documentation for Purchase Loans
| Document Type | Description |
|---|---|
| Purchase Contract | Fully executed contract signed by buyer and seller |
| Credit Report | Soft tri-merge credit report for each guarantor |
| Background Report | Background check for each guarantor |
| Track Record | History of prior completed rehab projects |
| Identification | Government-issued ID (driver’s license, passport, Green Card) |
| Borrowing Entity Docs | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9 |
| Rehab Scope and Budget | Detailed scope and budget to determine after-repair value |
| Appraisal Report | Paid appraisal report uploaded to loan file |
| Bank Statements | Two most recent statements per guarantor (personal/business) |
| Letters of Explanation | Clarifications for credit or background issues if requested |
Documentation for Refinance Loans
| Document Type | Description |
|---|---|
| Settlement Statement | Fully executed statement from previous purchase or refinance |
| Credit Report | Soft tri-merge credit report for each guarantor |
| Background Report | Background check for each guarantor |
| Track Record | History of prior completed rehab projects |
| Borrowing Entity Docs | Formation documents of the borrowing entity |
| Sunk Costs Documentation | Proof of costs already incurred on the property |
| Rehab Scope and Budget | Detailed rehab plan and budget |
| Appraisal Report | Paid appraisal report uploaded to loan file |
| Bank Statements | Two most recent statements per guarantor (personal/business) |
| Letters of Explanation | Clarifications for credit or background issues if requested |
Are there Special Requirements for Loans Over $1 Million in Rhode Island?
Loans above $1 million (up to the $2 million maximum) must meet stricter criteria:
| Criteria | Explanation |
|---|---|
| Experience | Minimum Tier 3 (3+ similar high-value rehab projects preferred) |
| Market Liquidity | At least 3 comparable sales within a 2-mile radius listed on Rhode Island MLS within last 6 months |
| Credit Score | Minimum 680 with 5 or more tradelines showing 24-month history |
| Rural Designation | Properties classified as rural by CFPB or USDA or appraisal report are ineligible |
| Track Record | Comprehensive project history required for all borrowing entity members |
Glossary of Key Terms
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit on the same parcel as main home |
| Arms-length | Transaction between unrelated parties to ensure fair market value |
| Initial Advance | Portion of loan wired to cover purchase price |
| Construction Holdback | Portion of loan held back and disbursed through draws |
| Interest Reserves | Funds held in escrow to cover accrued interest before borrower payments start |
| LOE | Letter of Explanation clarifying financial or credit concerns |
| LTC | Loan-to-Cost: ratio of loan amount to purchase plus rehab costs |
| LTFC | Loan-to-Full-Cost: loan amount divided by total project cost (purchase + rehab) |
| LTV | Loan-to-Value: loan amount divided by property’s As-Is value |
| LTARV | Loan-to-After-Repair-Value: loan amount divided by estimated post-rehab value |
| As Disbursed Interest | Interest accrued only on loan funds that have been advanced |
| Full Boat Interest | Interest accrued on the entire loan amount, regardless of draws |
| Lopsided Deal | Rehab costs exceed As-Is or purchase price, limiting loan amount |
| DSCR | Debt Service Coverage Ratio, rent divided by mortgage obligations |
Get Your Rhode Island Hard Money Loan Quote Today
At OfferMarket Capital LLC, we specialize in providing Rhode Island real estate investors with fast, reliable, and flexible hard money loans tailored to the Ocean State’s unique market. Whether you’re flipping homes in Providence, acquiring rentals in Cranston, or renovating properties throughout Rhode Island, we’re ready to partner with you to build lasting wealth.
Join thousands of investors across Rhode Island and the country who trust OfferMarket for:
💰 Private lending ☂️ Insurance rate shopping 🏚️ Off market properties 💡 Market insights
