Hard Money Loan Washington State
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Last updated: May 20, 2025
At OfferMarket, our goal is to help Washington real estate investors grow wealth through property investments. To support your journey across Washington’s unique real estate market, we offer an integrated platform:
💰 Private lending
☂️ Insurance rate comparison
🏚️ Access to off-market Washington properties
Our Hard Money Loan program is crafted to deliver fast, reliable, and competitively priced financing solutions tailored for purchasing, refinancing, and renovating 1-4 unit residential investment properties throughout Washington.
Whether your plan is to flip a Seattle townhouse, refinance a Spokane duplex, or rehab a Tacoma triplex to rent, we’re excited to help you succeed in the Evergreen State’s dynamic property landscape.
Let’s explore the OfferMarket Hard Money Loan Program in Washington!
What is a hard money loan?
A hard money loan is a short-term loan secured by a tangible asset — in this case, 1-4 unit residential real estate in Washington. It is designed for purchasing, refinancing, and rehabilitating properties so you can either sell for profit or keep as rental income.
In Washington real estate circles, hard money loans are often called “bridge loans” or “fix and flip loans.” These terms are used interchangeably by investors and private lenders to describe flexible, asset-backed financing options.
Hard money loan scenarios in Washington
Hard money loans are a popular tool among Washington investors for several key purposes:
Buying and renovating a fixer-upper in neighborhoods like Capitol Hill or Rainier Valley without tying up your own cash.
Refinancing a distressed property you purchased quickly with cash, such as a foreclosure in Spokane, then completing renovations.
Rolling over an existing hard money loan on a Seattle property to finish rehab and prepare for sale or refinance.
Purchasing undervalued off-market homes in Tacoma or Olympia to sell “as is” for a quick profit.
Tapping into equity by refinancing a cash purchase in areas like Bellevue to fund your next investment.
Refinancing rehabbed properties in Washington without additional improvements, to extend hold time or prepare for sale.
How it works
A hard money loan in Washington has two primary components:
- Initial Advance — funds allocated toward your property purchase price, wired directly to the title company at closing.
- Construction Holdback — funds earmarked for rehab costs, released to you in draws as renovation milestones are completed.
Washington investors often combine both components to maximize leverage while minimizing their own cash outlay. Some prefer only an initial advance if they fund rehab themselves or don’t plan improvements. Others, who buy with cash upfront, may request just a construction holdback up to 100% of rehab costs.
Your exit strategy will typically be to flip for a profit or hold as a rental and refinance into a longer-term loan like a DSCR loan. Washington’s varied markets—from the fast-paced Seattle area to quieter towns—mean flexibility in exit plans is key.
It’s common for Washington investors to adapt their exit strategies based on shifts in market conditions or rental demand. For example:
You might begin planning a BRRRR (Buy, Rehab, Rent, Refinance, Repeat) in Spokane but pivot to flipping in response to a hot resale market.
You could intend to flip a Bellevue townhouse but decide to rent it out if the market cools, refinancing into a DSCR loan with a low prepayment penalty while waiting for better selling conditions.
These examples highlight why Washington investors benefit from projects with multiple exit options to reduce risk.
Who uses hard money loans in Washington?
Washington’s real estate investors use hard money loans mainly in these groups:
Fix and flip investors (also known as “flippers”) who target properties in competitive markets like Seattle’s Central District or emerging neighborhoods in Tacoma to renovate and sell quickly for profit.
Rental property investors applying the “BRRRR Method” — buying, rehabbing, renting, refinancing, and repeating — in Washington’s growing suburban areas such as Lynnwood or Vancouver, taking advantage of strong rental demand.
Many Washington investors use a blended approach, flipping some properties while holding others as rentals, adapting their strategy based on local market trends. This hybrid strategy is common and often recommended.
Hard Money Loan Program Guidelines for Washington
| 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 |
Project Eligibility in Washington
At OfferMarket, our mission is to support Washington investors in building wealth safely and sustainably through real estate. We prioritize managing risk across all lending activities. Historically, less than 0.5% of our loans have defaulted or required foreclosure — a record we proudly maintain.
Investors new to hard money loans who take on projects with heavy or extensive rehab scopes in Washington’s markets may face challenges. These complex renovations often involve delays, cost overruns, and unpredictable market changes, which can impact even seasoned investors, especially amid economic uncertainty or fluctuating regional housing demands.
As your Washington hard money lender, we act as your partner — providing capital, advising on deal structure, and helping manage risk with transparency and clear expectations. Below, you’ll see our structured rehab classification system and eligibility rules tailored for Washington projects.
Initial Advance for Washington Investors
The initial advance amount depends on borrower and deal specifics. We evaluate:
How many investment properties you’ve owned in Washington over the past 24 months.
Your verifiable rehab project experience in the last five years, ideally including Washington properties.
Credit score requirements: minimum 680, with a preference for guarantors above 720.
Special considerations for Washington-based Realtors, General Contractors, and Professional Engineers, who may receive higher leverage.
If the purchase price exceeds our appraisal or in-house valuation of the property’s “As Is” value, the advance is based on the lower appraisal value, not the contract price.
Your exit strategy influences your initial advance too. For flips, a minimum 30% projected gross margin and $15,000 projected profit is required. For rental/refinance plans, a DSCR (Debt Service Coverage Ratio) of at least 1.1 after repairs is necessary.
Rural properties in Washington, often outside major metro areas, face limits on the initial advance and require a minimum experience level of 3.
Experience-based Tiers for Washington Hard Money Loans
| Tier | Verifiable Experience (Completed Similar Rehab Projects) |
|---|---|
| 1 | 0 |
| 2 | 1 to 2 |
| 3 | 3 to 4 |
| 4 | 5 to 9 |
| 5 | 10+ |
Initial Advance by Tier for Washington Investors
| Tier | Initial Advance (% of Purchase Price) |
|---|---|
| 1 | 80%* |
| 2 | 85% |
| 3 | 85% |
| 4 | 90% |
| 5 | 90% |
* Exception basis: 85% available for borrowers with excellent credit and liquidity.
Adjustments to Initial Advance in Washington
| Scenario | Adjustment |
|---|---|
| Credit score less than 720 | -5% |
| Full gut rehab | -5% |
| New market (Washington regions new to borrower) | -5% |
| Licensed Realtor | Up to +5% |
| Licensed General Contractor | Up to +10% |
| Licensed Professional Engineer | Up to +10% |
| Rural (Washington counties designated rural) | -20% (3+ experience required) |
Rehab Scope Classification in Washington
| Rehab Scope | Definition |
|---|---|
| Light | Rehab budget is less than 25% of purchase price |
| Moderate | Rehab budget is 25% to 49.99% of purchase price |
| Heavy | Rehab budget is 50% to 99.99% of purchase price |
| Extensive | Rehab budget is 100%+ of purchase price – includes additions, expansions, accessory dwelling units (ADUs), or lopsided deals* |
* “Lopsided deal” refers to a low purchase price property where rehab costs exceed the purchase or “As Is” value.
Rehab Scope Eligibility by Experience Tier in Washington
| Tier | Experience | Light | Moderate | Heavy | Extensive |
|---|---|---|---|---|---|
| 1 | 0 | Eligible | Ineligible | Ineligible | Ineligible |
| 2 | 1-2 | Eligible | Eligible | Eligible | Ineligible |
| 3 | 3-4 | Eligible | Eligible | Eligible | Eligible |
| 4 | 5-9 | Eligible | Eligible | Eligible | Eligible |
| 5 | 10+ | Eligible | Eligible | Eligible | Eligible |
LTARV Limits for Washington Hard Money Loans
| 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 for Washington Projects
Loan-to-Full-Cost (LTFC) applies to projects classified as Extensive where rehab budget exceeds purchase price or “As Is” value. The LTFC limits ensure borrowers have skin in the game for higher-risk projects.
| Tier | Experience | Light | Moderate | Heavy | Extensive |
|---|---|---|---|---|---|
| 1 | 0 | N/A | Ineligible | Ineligible | Ineligible |
| 2 | 1-2 | N/A | N/A | N/A | Ineligible |
| 3 | 3-4 | N/A | N/A | N/A | 85% |
| 4 | 5-9 | N/A | N/A | N/A | 90% |
| 5 | 10+ | N/A | N/A | N/A | 90% |
Example: No Experience, Washington Property
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, Washington
Purchase price: $100,000
Tier: 1 (0 verifiable experience)
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 Experience, Washington Investor
Purchase price: $100,000
Tier: 4 (5 verifiable experience)
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 in Washington
Typically, we lend based on your cost basis (purchase price plus sunk costs) to ensure you maintain equity (“skin in the game”).
If you have a seasoned Washington property worth more “As Is” than your cost basis and want leverage for renovation, OfferMarket evaluates these conditions:
Property must be habitable (condition rating C4 or better) and not in disrepair.
Property must be seasoned at least 3 years.
Payoff statement from previous lender should be free of default interest or late fees.
Minimum credit score 680.
Experience Tier 3 or above (at least 4 similar rehab projects).
Strong market comps supporting the higher “As Is” value.
Supportive rehab scenario, e.g., property was rented in Washington for 3 years, tenants vacated, now undergoing renovation.
Transactions involving wholesalers require detailed documentation and must comply with local Washington real estate regulations.
Construction Holdback in Washington
The construction holdback portion of your hard money loan is disbursed through draw requests, reimbursing verified progress made on your Washington property’s renovation. This ensures that funds are released as work is completed according to your approved scope.
If you have sufficient capital to cover rehab expenses yourself, you may choose to waive the construction holdback and fund the rehab independently.
For loans $100,000 and above, interest accrues only on funds actually disbursed (known as “As Disbursed” interest accrual), protecting you from paying interest on undrawn rehab funds.
| Criteria | Draw Processing Guideline |
|---|---|
| Minimum draw amount | None |
| Maximum draw amount | 100% of remaining construction holdback |
| Minimum number of draws | 0 |
| Maximum number of draws | None |
| Materials delivered but not installed | 50% (receipt or invoice required) |
| Draw inspection | App-based (self-serve) |
| Draw turnaround | 0 to 2 business days |
| Draw fee | $270 |
| Wire fee | $30 |
Appraisal and In-house Valuation for Washington Properties
Every OfferMarket hard money loan in Washington requires a valuation. Depending on the deal, this can be:
A third-party interior appraisal
A third-party exterior appraisal
An in-house valuation
In-house Valuation Criteria in Washington
| 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 may require an interior or exterior appraisal at its discretion, even if you qualify for in-house valuation.
Exterior Appraisal in Washington
Exterior appraisals are suitable for sales such as REO, foreclosure auctions, sheriff’s sales, online auctions, or bankruptcy sales. Appraisals must be dated within 120 days of settlement. Between 120 and 180 days requires recertification.
Interior Appraisal in Washington
Properties not fitting exterior or in-house appraisal criteria require a full interior appraisal, using the following forms:
| Property Type | 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 orders the appraisal via an approved appraisal management company (AMC). You will be billed for the appraisal invoice, which must be paid for loan approval.
Appraisal Transfer Policy for Washington Loans
Appraisals ordered outside OfferMarket can be transferred if:
Ordered via approved AMC
Less than 180 days old at loan closing
Recertified if 120 to 179 days old at closing
Transfer letter certifying compliance with Appraiser Independence Requirements (AIR)
Complete appraisal reports (pdf and xml) and paid appraisal invoice provided
Scenario: Stabilized Hard Money Loan in Washington
If your Washington property has no deferred maintenance and an appraisal condition rating of C4 or better, we will appraise it on an As Is basis and fund up to 75% of the As Is value. This “stabilized” scenario applies when the property is ready for rent or sale without major rehab.
| Criteria | Guideline |
|---|---|
| LTV (maximum) | Tier 1: 70% |
| Tier 2: 70% | |
| Tier 3: 75% | |
| Tier 4: 75% | |
| Tier 5: 75% | |
| LTFC (maximum) | Tier 1: 80% |
| Tier 2: 80% | |
| Tier 3: 90% | |
| Tier 4: 90% | |
| Tier 5: 90% | |
| Appraisal condition rating | C1, C2, C3 or C4 |
| Loan Term (maximum) | 12 months |
Key Loan Details for Washington 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 properties |
| Single-family homes, 2‑4 unit multifamily | |
| Condominiums, townhomes, planned unit developments | |
| 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 prices under $100,000 |
| Loan Term | 12 months standard; 18-24 months available for specific projects |
| Extensions | Up to 50% of original term (fee applies) |
| Points | 1.5 to 2 points ($2,000 minimum) |
| Prepayment Penalty | None |
| Occupancy | Non-owner occupied – business purpose only |
| Transaction Types | Arms-length purchase, refinance |
| Geographic Region | Washington State |
| Amortization | Interest-only with balloon payment at maturity |
| Interest Accrual Method | Loan Amount < $100K: interest charged on total loan amount (“Full Boat”) |
| Loan Amount ≥ $100K: interest charged on funds disbursed (“As Disbursed”) |
Extensions for Washington Hard Money Loans
Hard money loans are intended as short-term financing, typically 12 to 24 months. Most loans are repaid well within 12 months. Extending a hard money loan should be avoided when possible, as extensions add fees, interest, and increase risk of foreclosure if the loan isn’t repaid by the extension deadline.
To minimize extension risk on Washington properties, focus on:
Using experienced general contractors with proven references.
Keeping rehab scopes reasonable relative to your experience and liquidity.
Avoiding markets with lengthy zoning or permitting delays.
Ensuring immediate access to the property (avoiding tenant lease holdovers or evictions).
Having dual exit strategies to sell or refinance.
Extension Limits
| Initial Loan Term | Max Extension |
|---|---|
| 12 months | 6 months |
| 18 months | 9 months |
| 24 months | 12 months |
Extension Terms and Fees for Washington Loans
| Extension Term | Fee |
|---|---|
| 3 months (1st request) | 1% of the total loan amount |
| 3 months (2nd request) | 1.5% of the total loan amount |
| 6 months (1st request) | 2.5% of the total loan amount |
Extension Prerequisites
To request an extension on your Washington loan, you must provide proof that your builder’s risk insurance policy remains active throughout the extension period.
Ineligible Property Types in Washington
The following types of properties are not eligible for funding under our hard money loan program in Washington:
Mixed use properties
Multifamily buildings with 5 or more units
Condotels
Co-ops
Mobile or manufactured homes
Commercial properties (retail, office, industrial)
Cabins or log homes
Properties with active oil or gas leases
Operating farms, ranches, or orchards
Vacation or seasonal rentals
Unique, exotic, or luxury properties
Properties accessed solely by unpaved or dirt roads
Exception Scenarios for Washington Loans
We may consider exceptions under specific conditions:
Guarantor credit scores between 660 and 679
Leasehold or ground rent properties
Single-family homes between 500 and 699 square feet
2-4 unit properties where one or more units measure between 400 and 499 square feet
Initial advances based on As Is values higher than cost basis
Non-arms length transactions
Financed interest payments
Borrower and Guarantor Requirements for Washington
| Item | Requirements / Eligibility |
|---|---|
| Borrowing Entities | Limited Liability Company (LLC) or Corporation; nonprofits not eligible |
| Eligible Borrowers | U.S. Citizens, U.S. Permanent Residents, and qualified Foreign Nationals |
| Foreign Nationals | Valid passport and U.S. visa (excluding travel/student visas not on Visa Waiver Program) |
| Credit Requirements | Minimum 680 FICO (exceptions may apply for 660-679) |
| Credit Report | Tri-merge credit report, no older than 120 days |
| Liquidity Requirements | Minimum cash to close plus 25% of rehab budget held in liquid assets |
| Eligible Liquid Assets | Bank accounts (personal/business), brokerage accounts, retirement accounts (50% haircut) |
| Verification | Two most recent statements, no seasoning required, LOE for large deposits |
| Guaranty Structure | Purchase: at least 51% of borrowing entity must guarantee; Cash-out refinance: 100% guarantee; full recourse required |
| Aggregate Guarantor Net Worth | Must be at least 50% of loan amount |
Credit and Background Items for Washington Borrowers
When three credit scores appear on the tri-merge report, we use the middle score (second highest).
When two scores appear, we use the lower score.
If there are no mortgage tradelines, or if private loan verification for mortgages is unavailable, six months of interest reserves are required.
If fewer than five tradelines appear on the credit report, six months of interest reserves are required.
Bankruptcies must have a discharge date at least four years prior to loan settlement.
Foreclosures must be at least four years old from settlement date.
Bankruptcies or foreclosures between four and seven years require a minimum of three months of interest reserves.
Late mortgage payments within the past 12 months may require a letter of explanation and could affect eligibility.
Past-due balances on mortgages and non-mortgage tradelines (HELOC, credit cards, etc.) must be paid before funding.
Involuntary liens or judgments (tax liens, child support) must be cleared before funding.
Pending civil lawsuits require a letter of explanation and are subject to underwriting discretion.
Pending criminal lawsuits, financial crimes, and serious or repeat crimes may disqualify eligibility.
Interest Reserves for Washington Hard Money Loans
Interest reserves are collected at closing and held in escrow to cover interest payments. These reserves are drawn down before monthly interest payments are due.
| Interest Reserve | Scenario |
|---|---|
| 0 months | Lender discretion |
| 1 month | Guarantor FICO score of 700 or higher |
| 3 months | Guarantor FICO between 660 and 699 |
| 6 months | Guarantor FICO between 660 and 699 and/or concerning credit or background items |
Financed Interest Payments in Washington
To preserve liquidity and prevent overuse of credit cards during renovation, you may qualify for financed interest payments. This means interest accrues and is added to your payoff balance rather than being paid monthly.
Example:
Loan amount: $100,000
Interest rate: 12%
Loan held: 9 months
Accrued interest: $9,000 ($100,000 × 12% ÷ 12 × 9)
Payoff Statement:
Principal balance: $100,000
Unpaid interest: $9,000
Property Sourcing Guidelines for Washington
Key points for sourcing Washington properties include:
New market transactions require a General Contractor agreement or a detailed Letter of Explanation if a GC is not needed.
Properties with previous sale price increases, wholesale deals, or non-arms length transactions require additional documentation and review.
For condos, conversions, or major renovations, architect or engineer letters or permits are necessary.
All submissions must include purchase contracts, settlement statements, payoff letters (if applicable), track record information, and formation documents.
Insurance Guidelines for Hard Money Loans in Washington
Protecting your Washington property and your investment is essential. Hard money loan insurance, often called Builder’s Risk or Fix and Flip insurance, provides coverage for properties under renovation, vacant, or in poor condition.
Coverage and Limits
| Coverage Type | Limit | Required |
|---|---|---|
| Dwelling | Replacement cost or loan amount (no coinsurance) | Yes |
| Liability | $1 million per occurrence / $2 million aggregate | Yes |
| Builder’s Risk | Included | Yes |
| Flood | Greater of $250,000 or loan balance (if in FEMA Special Flood Hazard Area) | Only if applicable |
Coverage Details
| Coverage 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 exclusions |
| Cancellation Notice | 30-day notice required |
💡 Pro Tip: After taking ownership of your Washington property, promptly install smoke detectors, secure locks, and surveillance cameras. These measures help comply with insurance requirements and prevent claim denials.
Frequently Asked Questions
What states does OfferMarket fund hard money loans in?
OfferMarket provides hard money loans across many states, including Washington and its diverse real estate markets. Our coverage includes:
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
In states such as Arizona, Minnesota, Nevada, North Dakota, Oregon, South Dakota, Utah, and Vermont operate differently—either requiring an NMLS license or where we provide rate shopping services rather than direct lending.
Can I have more than one hard money loan at a time?
Yes. Many Washington investors maintain multiple hard money loans simultaneously to grow their portfolios. However, we prioritize your financial safety and may advise managing risk if liquidity or project pace suggests caution.
Are hard money loans considered commercial loans?
Yes. Since hard money loans are issued to your business entity (LLC or corporation) for investment purposes, they are classified as commercial loans.
What is the minimum loan amount?
The minimum loan OfferMarket provides is $25,000.
Which property types are eligible?
We finance non-owner occupied 1-4 unit residential properties in Washington, including single-family homes, townhomes, small multifamily units (2-4 units), and warrantable condos.
How do you calculate Loan-to-Value (LTV)?
For hard money loans in Washington, LTV usually refers to Loan-to-After-Repair-Value (LTARV). The initial advance is based on the lower of the property’s As Is value or the purchase price in your contract (or prior closing if refinancing). LTARV is the total loan amount (initial advance plus construction holdback) divided by the estimated after-repair value from the appraisal or in-house valuation.
What are the credit requirements?
A minimum FICO score of 680 is required to qualify for a hard money loan in Washington. Borrowers with scores between 660 and 680 may be considered on a case-by-case basis. We focus on the credit scores of borrowing entity members who personally guarantee the loan.
What are the experience requirements?
Experience is not mandatory. However, verifiable completed rehab projects of similar scope and price can increase your leverage via our experience Tier system. Our underwriting team will review your track record with submitted documentation like settlement statements and operating agreements.
Does wholesaling count as experience?
No. Being a wholesaler does not count toward experience since it doesn’t involve financial responsibility for completing rehab.
What Documentation is Required?
Purchase Transaction Requirements
| Loan File Section | Required Documentation |
|---|---|
| Loan File | Complete loan application file |
| Purchase Contract | Fully executed by buyer and seller |
| Credit Report | Soft tri-merge credit report for each borrowing entity guarantor |
| Background Report | Required for each borrowing entity guarantor |
| Track Record | Required for each borrowing entity guarantor |
| ID Verification | Government-issued ID (driver’s license, passport, Green Card) |
| Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9 |
| Scope of Work | Detailed rehab budget to determine ARV |
| Appraisal Report | Link provided to pay appraisal invoice; uploaded to loan file |
| Bank Statements | Two most recent statements for each guarantor (personal or business accounts acceptable) |
| Letter of Explanation | If requested (e.g., large deposits, late payments, background items) |
Refinance Transaction Requirements
| Loan File Section | Required Documentation |
|---|---|
| Loan File | Complete loan application file |
| Settlement Statement | Fully executed by buyer and settlement agent |
| Credit Report | Soft tri-merge credit report for each borrowing entity guarantor |
| Background Report | Required for each borrowing entity guarantor |
| Track Record | Required for each borrowing entity guarantor |
| ID Verification | Government-issued ID (driver’s license, passport, Green Card) |
| Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9 |
| Sunk Costs | Documentation of costs already incurred |
| Scope of Work | Detailed rehab budget to determine ARV and guide rehab |
| Appraisal Report | Link provided to pay appraisal invoice; uploaded to loan file |
| Bank Statements | Two most recent statements for each guarantor (personal or business accounts acceptable) |
| Letter of Explanation | If requested (e.g., large deposits, late payments, background items) |
Are there special requirements for loans over $1M in Washington?
Loans exceeding $1 million, up to our $2 million maximum, are subject to enhanced underwriting criteria:
| Criteria | Explanation |
|---|---|
| Experience | Minimum experience of 3 similar or higher price point projects preferred |
| Market Liquidity | Minimum of 3 comparable sales within a 2-mile radius on MLS in last 6 months |
| Credit Score | Minimum 680 with at least 5 trade lines and 24 months’ credit history |
| Rural Designation | Not eligible if designated rural by CFPB, USDA, or appraisal report |
| Track Record | Required for all borrowing entity members |
Glossary of Key Terms
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit — a secondary, self-contained housing unit on the same parcel as a main single-family home. |
| Arms-length | Transaction between independent parties with no special relationship to ensure fair market value. |
| Non Arms-length | Transaction involving personal, financial, or business connections that may influence price or terms. |
| Initial Advance | Portion of the loan wired to the title company for the purchase price at closing. |
| Construction Holdback | Portion of the loan reserved for rehab, disbursed via draws during construction. |
| Interest Reserves | Interest collected at settlement and held in escrow to cover accrued interest before monthly payments start. |
| LOE | Letter of Explanation — document clarifying financial or credit circumstances. |
| LTC | Loan to Cost — ratio of loan amount to combined purchase price and rehab costs. |
| LTFC | Loan to Full Cost — ratio of total loan amount to total project cost (purchase + rehab). |
| LTV | Loan to Value — ratio of loan amount to property’s As-Is value. |
| LTARV | Loan to After Repair Value — loan amount relative to estimated value post-renovation. |
| As Disbursed Interest | Interest charged only on funds actually disbursed. |
| Full Boat Interest | Interest charged on entire loan amount (purchase + full rehab budget). |
| Lopsided Deal | When rehab costs exceed purchase or As-Is value, leading to restricted financing terms. |
| GC Agreement | Contract with a general contractor specifying management and execution responsibilities. |
| DSCR | Debt Service Coverage Ratio — income generated by the property divided by debt obligations. |
Instant Hard Money Loan Quote for Washington Investors
OfferMarket Capital LLC, our private lending arm, is a leading hard money lender for 1-4 unit residential real estate investments across Washington. Our mission is to empower you to build wealth through real estate by providing fast, dependable capital.
Thousands of real estate investors in Washington and beyond trust OfferMarket monthly for:
💰 Private lending ☂️ Insurance rate shopping 🏚️ Off market properties 💡 Market insights
