Hard Money Loan Tennessee
All steps completed - you're finished
Last updated: May 19, 2025
At OfferMarket, our mission is to empower Tennessee real estate investors to build wealth through property. To support your investing journey in Tennessee, we offer an all-in-one platform designed for local market success:
💰 Private lending
☂️ Insurance rate shopping
🏚️ Off-market properties
Our Hard Money Loan Tennessee program is tailored to provide fast, reliable, and cost-effective financing solutions for purchasing, refinancing, and renovating 1-4 unit residential investment properties across Tennessee.
Whether you plan to flip homes in Nashville, rent properties in Memphis, or refinance investments in Chattanooga, we’re here to back your success.
Let’s explore the OfferMarket Hard Money Loan Tennessee program!
What is a hard money loan?
A hard money loan is a short-term loan secured by tangible assets—in Tennessee’s case, 1-4 unit residential real estate—used to purchase, refinance, and renovate properties with the goal of either selling for profit or holding as a rental.
Tennessee investors often call these “bridge loans” or “fix and flip loans,” terms commonly exchanged among local private lenders and investors.
Hard money loan scenarios in Tennessee
Real estate investors in Tennessee commonly use hard money loans for:
Buying and renovating distressed Nashville or Knoxville homes without tying up personal cash
Refinancing a Memphis property purchased in cash that needs rehab before resale or rental
Refinancing existing loans on Tennessee properties needing completion of renovation
Purchasing below-market off-market properties in Tennessee to sell “as-is” for quick profit
Refinancing cash purchases in Tennessee to tap equity for new investments
Refinancing rehabbed properties in Tennessee to gain time before selling or long-term financing
How it works in Tennessee
A hard money loan consists of two key components:
| Component | Description |
|---|---|
| Initial Advance | Funds wired to the title company for Tennessee property purchase |
| Construction Holdback | Funds wired to you based on verified rehab progress in Tennessee |
You can choose to use either or both components based on your Tennessee project needs.
Most Tennessee investors leverage both to reduce out-of-pocket cash and maximize leverage. Some prefer only the initial advance if they self-fund renovations or plan to hold as-is.
Your exit strategy may be flipping homes in Nashville or renting and refinancing into a DSCR loan in Tennessee cities. Market shifts often encourage switching strategies — and that's perfectly fine.
Who uses hard money loans in Tennessee?
Fix and flip investors (“flippers”) working Tennessee neighborhoods
Rental property investors using the BRRRR method to grow Tennessee portfolios
We also offer a Fix and Rent bundle, combining hard money loans for purchase/rehab and discounted DSCR loans for refinance—popular among Tennessee real estate investors.
Hard Money Loan Program Guidelines for Tennessee
| 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% 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 |
Project Eligibility in Tennessee
At OfferMarket, we prioritize helping Tennessee investors manage risk. Less than 0.5% of our loans have defaulted industry-wide, reflecting our commitment to your success.
In Tennessee’s diverse real estate markets—from urban Memphis to rural East Tennessee—complex rehabs increase risks. We recommend focusing on manageable rehab projects, especially in uncertain economic times.
As your hard money lender, we partner with you as advisor, risk manager, and capital provider. Below you will find detailed eligibility criteria for Tennessee projects based on rehab scope and experience.
Initial Advance in Tennessee
The initial advance amount depends on borrower qualifications and deal specifics. For Tennessee borrowers, we consider:
Number of Tennessee investment properties owned in the last 24 months
Verifiable rehab projects completed in Tennessee over the last 5 years
Minimum credit score of 680 (preferred 720+ for guarantors)
We offer increased leverage for Tennessee Realtors, General Contractors, and Professional Engineers.
If the Tennessee purchase price exceeds our appraisal or in-house valuation of the As-Is value, the initial advance will be based on the lower As-Is value, not the contract price.
Your exit strategy impacts initial advance. For flips, Tennessee projects should target at least 30% gross margin and $15,000 minimum profit. For rentals and refinance, a minimum DSCR of 1.1 post-rehab is expected.
Properties designated rural in Tennessee have limited initial advance and require minimum experience level 3.
Experience-based Tiers for Tennessee Investors
| Tier | Verifiable Rehab Experience in Tennessee |
|---|---|
| 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 Tennessee borrowers with excellent credit and liquidity.
Adjustments to Initial Advance in Tennessee
| Scenario | Adjustment |
|---|---|
| Credit score < 720 | -5% |
| Full gut rehab | -5% |
| New Tennessee market | -5% |
| Licensed Realtor | Up to +5% |
| Licensed General Contractor | Up to +10% |
| Licensed Professional Engineer | Up to +10% |
| Rural Tennessee property | -20% (3+ experience required) |
Rehab Scope Classification for Tennessee Projects
| 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 (addition, expansion, ADU, or low purchase price “lopsided deal”) |
*Note: A “lopsided deal” in Tennessee occurs when the As-Is value or purchase price is less than rehab costs.
Rehab Scope Eligibility for Tennessee Borrowers
| 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 |
LTARV Limits in Tennessee
| 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 Tennessee Rehab Projects
| 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 Scenarios
No Experience, Moderate Rehab
Purchase price: $100,000
Tier: 1 (0 Tennessee 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
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
Experienced Tennessee Investor
Purchase price: $100,000
Tier: 4 (5 Tennessee 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 Tennessee
Our underwriting method usually lends based on your cost basis (purchase price plus sunk costs), ensuring Tennessee borrowers retain equity (“skin in the game”).
For refinance deals on seasoned Tennessee properties valued higher As-Is than cost basis, with renovation plans, OfferMarket requires:
Property habitable (≥ C4 condition), no disrepair
At least 3 years of seasoning in Tennessee
No default interest, extension, or late fees on payoff statements
Credit score 680+
Experience Tier 3+ (minimum 4 Tennessee rehab projects)
Strong support for As-Is value > cost basis with Tennessee comps
Supportive scenario (e.g., rented property now vacant needing rehab before sale)
Transactions Involving Wholesalers in Tennessee
If wholesaling is involved, the assignment fee or double-close price run-up can be included in your cost basis, capped at 20% of the Tennessee purchase price between seller and wholesaler. Overages are your responsibility.
Example Tennessee scenario:
A-B Contract: $100,000
B-C Contract (assignment fee): $25,000
As-Is Value: $125,000
Value basis for initial advance: $120,000
Wholesaler guidelines specific to Tennessee:
Up to 20% price run-up included
No financing assignment fees if property was on MLS
Require full contract chain and wholesaler agreements
No financing for finder/referral fees
Must be arm’s length
Construction Holdback in Tennessee
Construction holdback funds are disbursed via draw requests and reimbursements for verified Tennessee rehab progress.
If you have sufficient funds to cover rehab and prefer no holdback, you can opt out.
Loans $100,000+ benefit from “As Disbursed” interest accrual on undrawn holdback funds.
| Criteria | Draw Processing Guideline |
|---|---|
| Minimum draw amount | None |
| Maximum draw amount | 100% of remaining construction holdback |
| Minimum draws | 0 |
| Maximum draws | None |
| Materials delivered but not installed | 50% (receipt required) |
| Draw inspection | App-based (self-serve) |
| Draw turnaround time | 0 to 2 business days |
| Draw fee | $270 |
| Wire fee | $30 |
Appraisal and In-House Valuation for Tennessee
Every OfferMarket hard money loan in Tennessee requires a property valuation, which may be a third-party interior appraisal, exterior appraisal, or an in-house valuation depending on the specific scenario.
In-house valuation criteria for Tennessee loans
| Criteria | Eligibility Requirement |
|---|---|
| Property type | Single family, Duplex, Triplex, Quadplex |
| Experience Tier | 4 or higher |
| Credit score | 720+ |
| Rural designation | No |
| New market | No |
| LTARV | 70% maximum |
OfferMarket reserves the right to require an interior or exterior appraisal at its discretion, even if an in-house valuation is otherwise eligible.
Exterior appraisal in Tennessee
Exterior appraisals are acceptable for specific Tennessee transactions such as:
REO sales
Foreclosure auctions
Sheriff’s sales
Online auctions
Bankruptcy sales
Exterior appraisals must be dated within 120 days of the loan settlement date. If dated between 120 and 180 days, recertification of the appraisal is required.
Interior appraisal in Tennessee
All other Tennessee hard money loan scenarios require a full interior appraisal. The required appraisal forms depend on the property type:
| Property Type | Required Appraisal Forms |
|---|---|
| Single family | 1004 + 1007 ARV with As-Is value included (non-gridded) |
| 2-4 Unit | 1025 + 216 ARV with As-Is value included (non-gridded) |
| Condo | 1073 + 1007 ARV with As-Is value included (non-gridded) |
OfferMarket will manage the appraisal ordering process via an appraisal management company (AMC). Tennessee borrowers are responsible for paying the appraisal invoice before loan funding. Loan requests with unpaid appraisal fees will be placed on HOLD status until payment is received.
Appraisal Transfer for Tennessee
Appraisals not originally ordered by OfferMarket may be transferred for Tennessee loans if they meet these criteria:
Ordered through an approved appraisal management company
Less than 180 days old at the time of closing
Recertified if between 120 and 179 days old at closing
Transferring lender provides OfferMarket with:
Signed transfer letter certifying compliance with Appraiser Independence Requirements (AIR)
Appraisal report in PDF and XML formats
Proof of appraisal payment (invoice)
Stabilized Hard Money Loan in Tennessee
For Tennessee properties with no deferred maintenance (C1-C4 rating), we fund up to 75% of As-Is value, termed “stabilized” loans.
| Criteria | Guideline |
|---|---|
| Max LTV | Tier 1 & 2: 70% |
| Tier 3, 4 & 5: 75% | |
| Max LTFC | Tier 1 & 2: 80% |
| Tier 3, 4 & 5: 90% | |
| Appraisal condition | C1, C2, C3 or C4 |
| Loan term | 12 months max |
Key Loan Details for Tennessee
| 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 (single-family, duplex, triplex, quadplex, condos, townhomes) |
| Property Minimum Size | Single family: ≥700 SQFT; Condo/2-4 Unit: ≥500 SQFT/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 (purchase price under $100K) |
| Loan Term | 12 months standard; 18-24 months available |
| Extensions | Up to 50% original term (fee applies) |
| Points | 1.5 to 2 points ($2,000 minimum) |
| Prepayment Penalty | None |
| Occupancy | Non-owner occupied, business purpose only |
| Geographic Region | Tennessee included |
| Amortization | Interest-only with balloon payment at maturity |
| Interest Accrual Method | < $100K loan: full boat; ≥ $100K loan: as disbursed |
Scenario: Stabilized Hard Money Loan in Tennessee
If the Tennessee property shows no deferred maintenance and has an appraisal condition rating of C4 or better, we will fund up to 75% of the As-Is value. This “stabilized” loan reflects a property ready to rent or sell.
| Criteria | Guideline |
|---|---|
| Maximum LTV | Tier 1 & 2: 70% |
| Tier 3, 4 & 5: 75% | |
| Maximum LTFC | Tier 1 & 2: 80% |
| Tier 3, 4 & 5: 90% | |
| Appraisal Rating | C1, C2, C3, or C4 |
| Loan Term | Up to 12 months |
Key Loan Details for Tennessee
| 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: single-family, duplex, triplex, quadplex, condos, townhomes |
| Minimum Property Size | Single family: 700+ SQFT; Condo & 2-4 Unit: 500+ SQFT per unit |
| Maximum Acreage | 5 acres |
| Loan to Cost (LTC) | Up to 90% purchase, 100% rehab |
| Loan to After Repair Value (LTARV) | Up to 75% |
| Minimum Down Payment | $10,000 (for purchase price under $100K) |
| Loan Term | Standard 12 months; extensions up to 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 |
| Geographic Coverage | Tennessee included |
| Amortization | Interest-only with balloon payment at maturity |
| Interest Accrual Method | Loan < $100K: full boat; Loan ≥ $100K: as disbursed |
Extensions for Tennessee Hard Money Loans
Hard money loans in Tennessee are designed as short-term solutions, typically 12 to 24 months. Most Tennessee loans are paid off well within the initial term. Extensions should be avoided as they incur fees, additional interest, and increase the risk of foreclosure.
To reduce the need for extensions on Tennessee properties, focus on avoiding:
Tennessee general contractors with limited experience or references
Rehab scopes too aggressive for your experience and liquidity
Tennessee markets with slow zoning and permitting processes
Scenarios where you lack immediate access to the property (e.g., tenant holdovers requiring eviction)
Projects without a dual exit strategy for selling or refinancing
Extension Limits for Tennessee Loans
| Initial Loan Term | Max Extension Allowed |
|---|---|
| 12 months | 6 months |
| 18 months | 9 months |
| 24 months | 12 months |
Extension Terms and Fees for Tennessee Loans
| 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 for Tennessee Loans
Before extending your loan, Tennessee borrowers must confirm that their builder’s risk insurance policy remains active through the extension period.
Ineligible Property Types in Tennessee
The following properties are not eligible for funding through our Tennessee hard money loan program:
Mixed-use properties
Multifamily buildings with 5+ units
Condotels and co-ops
Mobile or manufactured homes
Commercial properties (retail, office, industrial)
Cabins and log homes
Properties with oil or gas leases
Operating farms, ranches, or orchards
Vacation or seasonal rentals
Unique, exotic, or luxury properties
Properties on unpaved or dirt roads
Exception Scenarios in Tennessee
Guarantor credit scores between 660-679 may be considered on a case-by-case basis
Leasehold (ground rent) properties
Single-family homes sized between 500 and 699 SqFt
2-4 unit properties with one or more units sized between 400 and 499 SqFt
Initial advance based on As-Is value exceeding cost basis
Non-arms length transactions
Financed interest payments
Borrower and Guarantor Requirements in Tennessee
| Item | Requirements / Eligibility |
|---|---|
| Borrowing Entities | LLC or Corporation (nonprofits not eligible) |
| Eligible Borrowers | US Citizens, US Permanent Residents, qualified Foreign Nationals |
| Foreign Nationals | Valid passport and US Visa (excluding Travel/Student Visas unless Visa Waiver Program) |
| Credit Requirements | Minimum FICO 680 (exceptions possible 660-679) |
| Credit Report | Tri-merge credit report (less than 120 days old) |
| Liquidity | Cash to close plus 25% of rehab budget in liquid assets |
| Guaranty Structure | Purchase: at least 51% of borrowing entity must guarantee; Cash-out refinance: 100% guarantee required |
| Recourse | Full recourse required |
| Net Worth | Aggregate guarantor net worth at least 50% of loan amount |
Liquidity Verification in Tennessee
To protect your Tennessee investment, guarantors must show liquidity equal to estimated cash to close plus 25% of rehab costs. Eligible liquid assets include:
Bank accounts (personal, business, or other verified entities)
Brokerage accounts (personal or borrowing entity)
Retirement accounts (50% haircut applied for restrictions)
Verification requires the two most recent statements with no seasoning requirement for new accounts and explanations for large deposits.
Credit and Background Items for Tennessee Borrowers
Middle score used if three credit scores returned; lowest if two returned
Interest reserves required if no mortgage tradelines or fewer than five tradelines
Bankruptcy or foreclosure must be older than 4 years; between 4-7 years require interest reserves
Late payments may require letters of explanation
All past due balances must be paid before funding
Liens and judgments must be cleared before funding
Pending lawsuits evaluated case-by-case
Criminal convictions disqualify funding
Financial or serious crimes may disqualify or require LOE
Interest Reserves for Tennessee Loans
Interest reserves are funds collected at closing and held in escrow to cover accrued interest before monthly payments begin. The amount of interest reserves depends on guarantor credit scores and any credit/background concerns.
| 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 concerning credit/background items |
Financed Interest Payments in Tennessee
To preserve liquidity and avoid heavy credit card use during rehab, Tennessee borrowers may finance interest payments. Instead of monthly payments, accrued interest is added to the loan payoff balance.
Example:
Loan amount: $100,000
Interest rate: 12%
Held for 9 months
Accrued interest: $9,000
Payoff statement includes $100,000 principal + $9,000 interest
Property Sourcing Guidelines for Tennessee
New Tennessee markets require a General Contractor agreement or letter explaining why one is unnecessary
Transactions with prior price run-ups, wholesaling, or non-arm’s length deals require extra documentation
For Tennessee condos, conversions, or extensive rehabs, architect or engineer letters or permits must be submitted
Loan submissions must include purchase contracts, settlement statements, payoff letters (if applicable), track record, and formation documents
Insurance Guidelines for Tennessee Hard Money Loans
Protect your Tennessee investment and yourself with Builders Risk or Fix and Flip insurance—essential for properties under renovation or vacant.
| Coverage Type | Limit | Required |
|---|---|---|
| Dwelling | Replacement Cost or Loan Amount (zero coinsurance) | Yes |
| Liability | $1M per occurrence / $2M aggregate | Yes |
| Builders Risk | Included | Yes |
| Flood | Greater of $250,000 or loan balance (if in FEMA flood zone) | Only if applicable |
Coverage Details
| Item | Requirement |
|---|---|
| AM Best Rating | A- VIII or higher |
| Policy Type | Special Form |
| Deductible | $1,000 to $5,000 |
| Lender’s Designation | Mortgagee and Additional Insured |
| Exclusions | No windstorm, hail, or named storm exclusion |
| Cancellation | 30-day notice required |
💡 Pro Tip: Upon taking ownership of Tennessee property, install smoke detectors, locks, and security cameras to comply with insurance requirements and avoid denied claims.
Frequently Asked Questions
What states does OfferMarket fund hard money loans in?
OfferMarket funds hard money loans across most U.S. states, including Tennessee. Here is the full list of states where we provide services:
States we 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, Washington DC, West Virginia, Wisconsin, Wyoming
States with special conditions or where we operate as a rate shopping service (due to licensing or regulatory requirements):
Arizona*, Minnesota*, Nevada*, North Dakota*, South Dakota*, Utah*, Vermont*
States we do NOT fund hard money loans in through this program:
Alaska, Arizona (direct lending restricted), Minnesota (direct lending restricted), Nevada (direct lending restricted), North Dakota (direct lending restricted), Oregon, South Dakota (direct lending restricted), Utah (direct lending restricted), Vermont (direct lending restricted)
(*In these states, OfferMarket acts as a rate shopping service and refers your loan to a licensed capital provider.)
Can I have more than one hard money loan at the same time?
Yes. Many Tennessee investors manage multiple hard money loans simultaneously. However, we prioritize risk management. If your liquidity or project pace does not support additional loans safely, we will discuss strategies to manage your exposure.
Are hard money loans commercial?
Yes. Hard money loans are business purpose loans issued to your business entity (LLC or Corporation), classifying them as commercial loans.
What is the minimum loan amount for Tennessee hard money loans?
The minimum loan amount is $25,000.
Which property types are eligible in Tennessee?
We finance non-owner occupied 1-4 unit residential properties including:
Single-family residences
Townhomes
Small multifamily properties (2-4 units)
Warrantable condos
Note: 5+ unit multifamily, mixed-use properties, and commercial real estate are not eligible under this program.
How is Loan-to-Value (LTV) calculated?
For Tennessee hard money loans, LTV usually refers to Loan-to-After-Repair-Value (LTARV). The initial advance is based on the lower of As-Is value and the purchase price in your contract or prior closing. LTARV equals total loan amount divided by the appraised after-repair value.
What credit score is required in Tennessee?
A minimum FICO score of 680 is required, with exceptions considered for scores 660-679. We evaluate the credit of guarantors personally guaranteeing the loan.
Is experience required?
No, experience is not required. However, verified experience with similar Tennessee rehab projects allows higher leverage under our experience tier system.
Does wholesaling count as experience?
No. Wholesaling does not count because you are not financially responsible for rehab completion.
What documentation is needed for Tennessee loans?
Purchase Transaction Requirements for Tennessee
| Loan File Section | Documents Required |
|---|---|
| Purchase | |
| Loan File | Complete and submitted via OfferMarket portal |
| Purchase Contract | Fully executed by buyer and seller |
| Credit Report | Soft tri-merge credit report for each guarantor |
| Background Report | Required for each guarantor |
| Track Record | Required for each guarantor |
| ID Verification | Government-issued ID (driver’s license, passport, etc.) |
| Borrowing Entity Docs | Articles of Organization/Incorporation, Operating Agreement, Certificate of Good Standing, W-9 |
| Scope of Work | Detailed rehab budget guiding ARV |
| Appraisal Report | Paid via provided link; appraisal uploaded to loan file |
| Bank Statements | Two most recent statements for each guarantor |
| Letter of Explanation | As requested (e.g., large deposits, credit inquiries) |
Refinance Transaction Requirements for Tennessee
| Loan File Section | Documents Required |
|---|---|
| Refinance | |
| Loan File | Complete and submitted via OfferMarket portal |
| Settlement Statement | Fully executed by buyer and settlement agent |
| Credit Report | Soft tri-merge credit report for each guarantor |
| Background Report | Required for each guarantor |
| Track Record | Required for each guarantor |
| ID Verification | Government-issued ID |
| Borrowing Entity Docs | Articles of Organization/Incorporation, Operating Agreement, Certificate of Good Standing, W-9 |
| Sunk Costs | List of incurred costs and line items |
| Scope of Work | Detailed rehab budget |
| Appraisal Report | Paid via provided link; appraisal uploaded to loan file |
| Bank Statements | Two most recent statements for each guarantor |
| Letter of Explanation | As requested |
Are there Special Requirements for Tennessee Loans Over $1 Million?
| Criteria | Explanation |
|---|---|
| Experience | Minimum of 3 Tennessee rehab projects at similar or higher price point preferred |
| Market Liquidity | Minimum of 3 comparable sales within 2-mile radius in Tennessee in last 6 months |
| Credit Score | Minimum 680 with at least 5 trade lines and 24 months history |
| Rural Designation | Not eligible if designated rural by CFPB/USDA or appraisal report |
| Track Record | Required for all guarantors |
Glossary of Key Terms
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit on the same Tennessee tax parcel |
| Arms-length | Independent, fair-market transactions |
| Non-Arms-length | Related party transactions impacting fairness or price |
| Initial Advance | Loan portion wired for Tennessee property purchase |
| Construction Holdback | Loan portion wired for Tennessee property rehab |
| Interest Reserves | Funds held to cover accrued interest before payments |
| LOE | Letter of Explanation clarifying financial or credit issues |
| LTC | Loan to Cost ratio (purchase price + rehab costs) |
| LTFC | Loan to Full Cost ratio (purchase price + rehab budget) |
| LTV | Loan to As-Is value ratio |
| LTARV | Loan to After-Repair Value ratio |
| As Disbursed Interest | Interest charged only on funds disbursed |
| Full Boat Interest | Interest charged on entire loan amount |
| Lopsided Deal | Rehab costs exceed As-Is or purchase value in Tennessee |
| GC Agreement | General Contractor agreement |
| DSCR | Debt Service Coverage Ratio: Rent divided by debt obligations |
Instant Hard Money Loan Quote for Tennessee
OfferMarket Capital LLC is a leading private lender specializing in hard money and DSCR loans for 1-4 unit residential real estate investors throughout Tennessee.
Our mission is to help Tennessee investors build wealth through real estate, providing fast, flexible financing tailored to your local market needs.
Thousands of Tennessee real estate investors trust OfferMarket monthly. Membership is free and includes:
💰 Private lending ☂️ Insurance rate shopping 🏚️ Off market properties 💡 Market insights
