Hard Money Loan Washington DC
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Last updated: May 20, 2025
At OfferMarket, our mission is to empower you to build wealth through real estate in Washington DC. To support your real estate investing journey within the DC metropolitan area, we provide you with a comprehensive platform:
💰 Private lending
☂️ Insurance rate shopping
🏚️ Off-market properties
Our Hard Money Loan program offers fast, reliable, and cost-effective financing solutions tailored for purchasing, refinancing, and renovating 1-4 unit residential investment properties in Washington DC. Whether your plan is to flip properties for profit or to hold and refinance into a DSCR loan, we’re eager to partner with you to fuel your success.
Let’s explore the OfferMarket Hard Money Loan Program designed for Washington DC real estate investors!
What is a hard money loan?
A hard money loan is a short-term, asset-backed loan secured by residential real estate, specifically 1-4 unit properties in Washington DC. It provides capital for purchasing, refinancing, and rehabilitating properties, aiming to sell for a profit or hold as rental investments. Known among investors and private lenders as “bridge loans” or “fix and flip loans,” hard money loans are an essential tool for the DC market.
Hard money loan scenarios in Washington DC
Real estate investors in Washington DC commonly use hard money loans for:
Purchasing and renovating older or distressed properties, especially in historic neighborhoods or rapidly gentrifying areas
Refinancing cash purchases to free up capital and complete renovations in high-demand DC ZIP codes
Refinancing existing loans to finish rehab work before selling or refinancing into a rental loan
Buying below-market off-market properties with plans to resell as-is for a profit
Cash-out refinancing to tap into equity for new acquisition opportunities in competitive DC submarkets
How it works
A Washington DC hard money loan consists of two parts:
Initial Advance – Funds applied toward the purchase price, wired to the title company at closing.
Construction Holdback – Funds allocated for rehab, disbursed via draw reimbursements based on verified work progress.
Many DC investors leverage both components to maximize leverage and minimize out-of-pocket cash. Some prefer only the initial advance or only the construction holdback depending on their strategy or rehab plans.
Your exit strategy will either be to flip the property for profit or to rent and refinance into a longer-term loan such as a DSCR loan. In the DC market, it’s common for investors to remain flexible and switch strategies based on market trends.
For instance, you might plan to use the BRRRR method — buy, rehab, rent, refinance, repeat — but if rental demand softens in certain DC neighborhoods, selling the renovated property for a quick profit might be more advantageous. Conversely, if the resale market cools, holding the property as a rental and refinancing can stabilize your cash flow.
Who uses hard money loans in Washington DC?
Fix and flip investors targeting DC’s emerging neighborhoods
Rental property investors employing the BRRRR strategy in the metro area
Hybrid investors adapting to DC’s dynamic market conditions
Hard Money Loan Program Guidelines for Washington DC
| 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% borrowing entity guarantee) |
| Exit strategy: Sale | Minimum 30% ROI |
| Exit strategy: Refinance | Minimum 1.1 DSCR after repairs |
| Valuation | Appraisal or In-house valuation |
| SqFt (minimum) | Single family: 700+ 2-4 units: 500+ per unit Condo: 500+ |
| Acreage (maximum) | 5 acres |
| Interest accrual | < $100,000 loan: full boat ≥ $100,000: as disbursed |
| Advanced draws | Lender discretion |
| Down payment (minimum) | $10,000 |
Project Eligibility in Washington DC
Our commitment is to help you build wealth with real estate while managing risk. We maintain an industry-leading low default rate by focusing on projects that align with borrowers' experience and rehab scope. The DC market can have unique challenges such as permitting delays and historic district restrictions, so project feasibility is a priority.
Heavy and extensive rehabs, especially in older DC properties, require solid experience due to potential cost overruns and delays. Our role is to partner with you as your capital provider and risk manager to ensure your projects succeed.
Initial Advance in Washington DC
Your initial advance depends on factors such as:
Number of properties owned in DC or surrounding areas in the past 24 months
Verifiable rehab projects completed in the last 5 years
Credit score (minimum 680, preferred 720+)
Professional licenses (Realtors, General Contractors, Engineers) can increase leverage
If the purchase price exceeds the appraised "As Is" value, your initial advance is based on the lower value. Exit strategy matters: projected gross margin for flips should be at least 30%, while rental refinance projects require a DSCR of 1.1+. Use our calculators for detailed analysis.
Experience-Based Tiers
| Tier | Verifiable Experience |
|---|---|
| 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% on exception for excellent credit and liquidity
Adjustments to Initial Advance in Washington DC
| Scenario | Adjustment |
|---|---|
| Credit score < 720 | -5% |
| Full gut rehab | -5% |
| New to DC market | -5% |
| Licensed Realtor | Up to +5% |
| Licensed General Contractor | Up to +10% |
| Licensed Professional Engineer | Up to +10% |
| Rural designation (outside DC proper) | -20% (3+ experience) |
Rehab Scope Classification
| Rehab Scope | Definition |
|---|---|
| Light | Rehab budget < 25% of purchase price |
| Moderate | Rehab budget 25% to 49.99% |
| Heavy | Rehab budget 50% to 99.99% |
| Extensive | Rehab budget ≥ 100% (addition, expansion, ADU) |
Rehab Scope Eligibility by Experience Tier
| 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 by Tier and Rehab Scope
| Tier | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Experience | 0 | 1-2 | 3-4 | 5-9 | 10+ |
| Light | 70% | 70% | 75% | 75% | 75% |
| Moderate | Ineligible | 70% | 75% | 75% | 75% |
| Heavy | Ineligible | 70% | 75% | 75% | 75% |
| Extensive | Ineligible | Ineligible | 70% | 70% | 70% |
LTFC Limits
Loan-to-Full-Cost (LTFC) limits apply to rehab scopes classified as Extensive, where the rehab budget equals or exceeds the purchase price or As Is value of the property. For Washington DC projects, an LTFC of 85% means the lender finances 85% of the total project cost (purchase price plus rehab), requiring you to cover at least 15% of the total cost to ensure you have adequate skin in the game on higher-risk renovations.
| Tier | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Experience | 0 | 1-2 | 3-4 | 5-9 | 10+ |
| Light | N/A | N/A | N/A | N/A | N/A |
| Moderate | Ineligible | N/A | N/A | N/A< | N/A |
| Heavy | Ineligible | N/A | N/A | N/A< | N/A |
| Extensive | Ineligible | Ineligible | 85% | 90% | 90% |
Example: No Experience – Washington DC
Purchase price: $100,000
Tier: 1 (no 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 DC
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: Experienced Investor – Washington DC
Purchase price: $100,000
Tier: 4 (5+ verifiable 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 Washington DC, our standard underwriting uses your cost basis (purchase price plus sunk costs) to ensure borrower equity in the deal. However, for refinance projects with seasoned properties worth more than cost basis, we allow initial advances based on the As Is value if certain criteria are met:
Property condition: habitable (rating C4 or better), not in disrepair
Property seasoning: minimum 3 years
Payoff statement must be free of default interest, extensions, or late fees
Credit score: minimum 680
Experience Tier: 3 or higher (at least 4 similar rehab projects completed)
Strong market support for higher As Is value through comparable sales in the DC area
Supportive scenario, e.g., tenant vacancy before renovation
Transactions Involving Wholesalers
If your Washington DC transaction involves a wholesaler, OfferMarket may include assignment fees or price run-ups in your cost basis for the initial advance, capped at 20% above the original purchase price from seller to wholesaler.
Example:
A-B Contract (seller to wholesaler): $100,000
B-C Contract (wholesaler assignment fee): $25,000
As Is Value: $125,000
Value basis for initial advance: $120,000 (capped at 20% above $100,000)
OfferMarket requires full documentation of contracts and wholesaler agreements and reserves the right to exclude fees on properties listed on MLS.
Construction Holdback
The construction holdback portion of your loan is disbursed via draw requests as rehab work progresses and is verified against your approved scope of work. If you prefer, and have sufficient liquidity, you may choose to fund the rehab yourself and opt out of the holdback.
For Washington DC loans of $100,000 or greater, interest on undrawn construction holdback funds accrues only on amounts disbursed ("As Disbursed" interest accrual).
| Criteria | Guideline |
|---|---|
| Minimum draw amount | None |
| Maximum draw amount | 100% of remaining holdback |
| Minimum number of draws | 0 |
| Maximum number of draws | None |
| Materials delivered but not installed | 50% reimbursement with receipts/invoices |
| Draw inspection | App-based self-service |
| Draw turnaround time | 0 to 2 business days |
| Draw fee | $270 |
| Wire fee | $30 |
Appraisal and In-house Valuation in Washington DC
Every OfferMarket hard money loan requires a valuation. Depending on your loan scenario and DC property specifics, you may need:
In-house valuation criteria
Property types: single family, duplex, triplex, quadplex
Experience Tier: 4 or above
Credit score: 720+
No rural designation
Not a new market for OfferMarket
LTARV capped at 70%
OfferMarket reserves the right to request interior or exterior appraisals based on the case.
Exterior appraisal acceptable scenarios:
REO sales
Foreclosure auctions
Sheriff sales
Online auctions
Bankruptcy sales
Exterior appraisals must be dated within 120 days of settlement; recertification required if 120-180 days old.
Interior appraisal
Any other scenario requires a full interior appraisal with forms according to property type:
| Property Type | Appraisal Forms |
|---|---|
| Single family | 1004 + 1007 ARV with As Is value |
| 2-4 Units | 1025 + 216 ARV with As Is value |
| Condo | 1073 + 1007 ARV with As Is value |
OfferMarket handles ordering appraisals unless transferring an approved recent appraisal (conditions apply).
Example: No Experience – Washington DC
Purchase price: $100,000
Tier: 1 (0 similar 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 DC
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: Experienced Investor – Washington DC
Purchase price: $100,000
Tier: 4 (5 similar 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 for Initial Advance
In the Washington DC market, we primarily lend based on your cost basis—that is, the purchase price plus sunk costs—to maintain borrower equity in each deal. However, for seasoned properties where the As Is value exceeds your cost basis, we allow initial advances based on As Is value if the following conditions are met:
Property condition must be habitable, rated C4 or better
Property seasoning of at least 3 years
Payoff statements free from default interest, late fees, or extension charges
Borrower credit score of 680 or higher
Experience Tier of 3 or greater (minimum of 4 similar rehab projects completed)
Market support through recent comparable sales in the DC area
A justified rehab or sale plan (e.g., property rented for years, now vacant and ready for renovation)
Transactions Involving Wholesalers
For real estate transactions in Washington DC involving wholesalers, OfferMarket can include the assignment fee or price run-up in your cost basis for calculating the initial advance, subject to a maximum increase of 20% above the original purchase price between the seller (owner of record) and the wholesaler.
For example:
A-B Contract (seller to wholesaler): $100,000
B-C Contract (assignment fee): $25,000
As Is Value: $125,000
Value basis for initial advance: $120,000 (capped at 20% above $100,000)
OfferMarket requires full documentation of the contract chain (A-B and B-C) and the wholesaler’s operating agreement to verify compliance. Note that properties listed on the MLS may not be eligible for financing assignment fees or price run-ups.
Construction Holdback
The construction holdback component of your Washington DC hard money loan is released through draw requests as verified progress is made on your rehab scope of work. You may choose to forego a construction holdback if you have sufficient liquidity to fund your rehab independently.
For loans of $100,000 or greater, interest accrues only on disbursed construction funds (As Disbursed interest accrual).
| Criteria | Guideline |
|---|---|
| Minimum draw amount | None |
| Maximum draw amount | 100% of remaining holdback |
| Minimum number of draws | 0 |
| Maximum number of draws | None |
| Materials delivered but not installed | 50% reimbursement with receipts/invoices |
| Draw inspection | App-based (self-serve) |
| Draw turnaround | 0 to 2 business days |
| Draw fee | $270 |
| Wire fee | $30 |
Appraisal and In-house Valuation
Every OfferMarket hard money loan in Washington DC requires a property valuation. The type of valuation depends on your specific loan scenario and property characteristics.
In-house valuation eligibility for Washington DC
| Criteria | Requirement |
|---|---|
| Property type | Single family, duplex, triplex, quadplex |
| Experience Tier | 4 or higher |
| Credit score | 720+ |
| Rural designation | No (Washington DC is urban) |
| New market | No |
| LTARV | Max 70% |
If you meet these criteria, you may qualify for an in-house valuation. However, OfferMarket reserves the right to require a full interior or exterior appraisal depending on the specifics of the property or loan.
Exterior appraisal
Exterior appraisals are accepted in certain Washington DC 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 between 120 and 180 days old, recertification is required.
Interior appraisal
Any Washington DC property or loan scenario not covered by the above typically requires a full interior appraisal using the following forms:
| Property Type | Appraisal Forms |
|---|---|
| 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) |
OfferMarket orders appraisals through a management company unless you transfer a qualifying appraisal under certain conditions.
Appraisal Transfer
If you have an appraisal for your Washington DC property that was not ordered by OfferMarket, you may be able to transfer it to us if it meets the following conditions:
The appraisal was ordered through an approved appraisal management company (AMC)
The appraisal is less than 180 days old at the time of your loan closing
If the appraisal is between 120 and 179 days old, it must be re-certified at closing
The transferring lender must provide OfferMarket with:
A signed transfer letter certifying compliance with Appraiser Independence Requirements (AIR)
The appraisal report in PDF format
The appraisal report in XML format
Proof of payment for the appraisal (invoice)
This process allows us to leverage existing valuations and streamline your loan approval.
Scenario: Stabilized Hard Money Loan
For Washington DC properties with no deferred maintenance and an appraisal condition rating of C4 or better, OfferMarket will fund up to 75% of the As Is value. This “stabilized” loan scenario applies when the property is move-in ready or rental-ready, requiring minimal immediate repairs.
| Criteria | Guideline |
|---|---|
| LTV (maximum) | Tier 1 & 2: 70% |
| Tier 3 to 5: 75% | |
| LTFC (maximum) | Tier 1 & 2: 80% |
| Tier 3 to 5: 90% | |
| Appraisal condition | C1, C2, C3, or C4 |
| Loan term (maximum) | 12 months |
Key Loan Details
| 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, 2-4 unit multifamily, condos, and 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 purchases under $100K |
| Loan Term | 12 months standard; 18-24 months available for select projects |
| 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, refinance |
| Geographic Region | Washington DC and surrounding metro area |
| Amortization | Interest-only with balloon payment |
| Interest Accrual Method | <$100K: full boat ≥$100K: as disbursed |
Extensions
Washington DC hard money loans are designed as short-term financing (12-24 months), and extensions should be minimized to avoid added fees and risks. Extensions can be granted up to 50% of the original loan term but come with additional costs.
Avoid extensions by:
Working with experienced contractors and reliable project managers
Limiting rehab scope to match your experience and market conditions
Planning for permitting and zoning timelines common to DC neighborhoods
Ensuring dual exit strategies (flip or refinance) are viable
| Initial Loan Term | Max Extension |
|---|---|
| 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
Before extending your Washington DC loan term, you must verify that your builder’s risk insurance policy remains active and covers the entire extension period.
Ineligible Property Types
The following property types are not eligible for Washington DC hard money loans:
Mixed-use buildings
Multifamily properties with 5+ units
Condotels and co-ops
Mobile or manufactured homes
Commercial properties (retail, office, industrial)
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 accessed only by unpaved or dirt roads
Exception Scenarios
OfferMarket considers exceptions for Washington DC investors in the following cases:
Guarantor credit score between 660-679
Leasehold or ground rent properties
Single-family homes sized 500 to 699 SQFT
2-4 unit properties where one or more units are 400 to 499 SQFT
Funding initial advance based on higher As Is value than cost basis
Non-arms length transactions
Financed interest payments
Borrower and Guarantor Requirements
| Item | Requirements / Eligibility |
|---|---|
| Borrowing Entities | Limited Liability Company (LLC) or Corporation; nonprofits not eligible |
| Eligible Borrowers | U.S. Citizens, U.S. Permanent Residents, and qualified Foreign Nationals |
| Foreign Nationals | Valid Passport, Valid U.S. Visa (excluding Travel/Student Visas unless Visa Waiver Program applies), U.S. FICO score required if Guarantor |
| Credit Requirements | Minimum 680 FICO (exceptions 660-679 considered) |
| Credit Report | Tri-merge credit report not older than 120 days |
| Liquidity Requirements | Minimum estimated cash to close plus 25% of rehab budget among guarantors |
| Eligible Liquid Assets | Bank accounts, brokerage accounts, retirement accounts (50% haircut) |
| Guaranty Structure | Purchase: 51%+ of borrowing entity must guarantee; Cash-out refinance: 100% guarantee required |
| Full Recourse | Required |
| Aggregate Guarantor Net Worth | At least 50% of loan amount |
Liquidity Verification
To safeguard your Washington DC project and personal finances, we verify that guarantors have sufficient liquidity covering estimated cash to close plus 25% of the rehab budget. Acceptable liquid assets include:
Personal and business bank accounts
Brokerage accounts under personal or business ownership
Retirement accounts (subject to 50% haircut)
No account seasoning is required for new accounts, but large deposits will require explanation.
Credit and Background Items
The middle credit score from a tri-merge report is used if three scores are available; otherwise, the lower of two scores is used.
Six months of interest reserves required if no mortgage tradelines or fewer than five tradelines are present.
Bankruptcy must be at least 4 years discharged; foreclosure at least 4 years completed.
Between 4 and 7 years since bankruptcy or foreclosure requires minimum 3 months interest reserves.
Late mortgage payments within the last 12 months require a letter of explanation and are subject to underwriting discretion.
Past due balances on mortgages or other credit must be paid in full before funding.
Involuntary liens or judgments must be resolved before loan approval.
Pending civil lawsuits require explanation and committee review.
Pending criminal lawsuits or financial crimes disqualify applicants.
Serious or repeat crimes may require explanation or cause denial.
Interest Reserves
Interest reserves collected at closing are held in escrow to pay accrued interest before 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 concerning credit/background items |
Financed Interest Payments
To protect liquidity during rehab, Washington DC borrowers may finance interest payments, adding accrued interest to the loan payoff rather than paying monthly.
Example:
Loan Amount: $100,000
Interest Rate: 12%
Months held: 9
Accrued interest: $9,000
Payoff: $100,000 principal + $9,000 interest
Property Sourcing Guidelines
Key points for Washington DC property sourcing:
New market loans require a General Contractor agreement or explanation for its absence.
Properties with wholesale deals, price run-ups, or non-arms length transactions require additional review and documentation.
Condos, conversions, and major renovations require architect or engineer letters or permits.
Submissions must include purchase contracts, settlement statements, payoff letters, track records, and formation documents.
Insurance Guidelines for Hard Money Loans in Washington DC
Insurance protects your physical property and liability during renovation or vacancy. Required coverages include:
| Coverage Type | Limit | Required? |
|---|---|---|
| Dwelling | Replacement Cost or Loan Amount | Yes |
| Liability | $1M per occurrence / $2M aggregate | Yes |
| Builders Risk | Included | Yes |
| Flood | $250,000 or loan balance if in FEMA flood zone | Conditional |
Additional insurance details:
AM Best rated A- VIII or better
Special form policy
Deductible $1,000 to $5,000
Mortgagee and Additional Insured designation
No exclusions for windstorm, hail, or named storms
30-day cancellation notice
Frequently Asked Questions
What states does OfferMarket fund hard money loans in?
OfferMarket funds hard money loans in the following states, including Washington DC:
Arizona*
Alabama
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Mississippi
Missouri
Minnesota*
Montana
Nebraska
Nevada*
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota*
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota*
Tennessee
Texas
Utah
Vermont*
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming
(*) In states requiring an NMLS license or where OfferMarket does not lend directly, we operate as a rate shopping service referring your loan to licensed providers.
Can I do more than one hard money loan at a time?
Yes, multiple loans are common for Washington DC investors. However, we prioritize risk management and may advise you if your liquidity or project pace indicates caution.
Are hard money loans commercial?
Yes, hard money loans are business purpose loans issued to your borrowing entity and are classified as commercial loans.
What is the minimum loan amount?
$25,000 is the minimum loan amount.
Which property types are eligible?
Non-owner occupied 1-4 unit residential properties including single-family homes, townhomes, small multifamily units (2-4 units), and warrantable condos.
How do you calculate Loan-to-Value (LTV)?
LTV typically refers to loan-to-after-repair value (LTARV). Initial advances are based on the lower of As Is value or contract purchase price. LTARV equals the total loan amount divided by the after-repair value from appraisal or in-house valuation.
What are the credit requirements?
Minimum FICO score is 680, with some exceptions for scores 660-679.
What are the experience requirements?
Experience is optional but increases leverage. Verified rehab projects similar to your loan size raise your experience tier.
Does wholesaling count as experience?
No, wholesaling is excluded because you are not financially responsible for the rehab completion.
What documentation is required?
Purchase Transactions
| Loan File Section | Required Documents |
|---|---|
| Purchase Contract | Fully executed contract between buyer and seller |
| Credit Report | Soft tri-merge credit report for all guarantors |
| Background Report | Required for all guarantors |
| Track Record | Documentation of completed projects for all guarantors |
| ID Verification | Government-issued ID (driver’s license, passport, Green Card) |
| Borrowing Entity Docs | Articles of Organization/Incorporation, Operating Agreement, Certificate of Good Standing, W-9 |
| Scope of Work | Detailed rehab budget for ARV calculation |
| Appraisal Report | Paid appraisal report uploaded to loan file |
| Bank Statements | Two most recent statements for each guarantor |
| Letter of Explanation | If requested (e.g., large deposits, late payments) |
Refinance Transactions
| Loan File Section | Required Documents |
|---|---|
| Settlement Statement | Fully executed by buyer and settlement agent |
| Credit Report | Soft tri-merge credit report for all guarantors |
| Background Report | Required for all guarantors |
| Track Record | Documentation of completed projects for all guarantors |
| ID Verification | Government-issued ID |
| Borrowing Entity Docs | Articles of Organization/Incorporation, Operating Agreement, Certificate of Good Standing, W-9 |
| Sunk Costs | Documentation of already incurred costs |
| Scope of Work | Rehab budget for ARV determination |
| Appraisal Report | Paid appraisal report uploaded to loan file |
| Bank Statements | Two most recent statements for each guarantor |
| Letter of Explanation | If requested |
Are there special requirements for loans over $1 million in Washington DC
| Criteria | Explanation |
|---|---|
| Experience | Minimum Tier 3 experience strongly preferred for high-value loans |
| Market Liquidity | At least 3 comparable sales within a 2-mile radius on MLS in last 6 months |
| Credit Score | Minimum 680 with 5 or more trade lines over 24 months history |
| Rural Designation | Loans not eligible if property is designated rural by CFPB or USDA |
| Track Record | Required for each member of the borrowing entity |
Glossary of Key Terms
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit, a secondary self-contained housing unit on the same property |
| Arms-length | Independent transaction ensuring fair market value |
| Non Arms-length | Transaction involving related parties potentially affecting fairness |
| Initial Advance | Portion of loan disbursed at closing for purchase price |
| Construction Holdback | Portion of loan reserved for rehab, disbursed via draws |
| Interest Reserves | Funds collected at closing held in escrow to pay accrued interest |
| LOE | Letter of Explanation clarifying credit or background issues |
| LTC | Loan to Cost, ratio of loan amount to purchase price plus rehab budget |
| LTFC | Loan to Full Cost, ratio of loan amount to total project cost |
| LTV | Loan to Value, ratio of loan amount to property’s As Is value |
| LTARV | Loan to After Repair Value, loan amount divided by appraised value after rehab completion |
| As Disbursed Interest | Interest accrued only on disbursed funds |
| Full Boat Interest | Interest accrued on entire loan amount, including undisbursed rehab funds |
| Lopsided Deal | When rehab costs exceed purchase or As Is value, limiting LTFC to 85% |
| GC Agreement | Contract outlining general contractor responsibilities |
| DSCR | Debt Service Coverage Ratio measuring rental income vs. debt payments |
Instant Hard Money Loan Quote
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