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Hard Money Loan Wisconsin

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Last updated: May 20, 2025

At OfferMarket, our mission is to empower Wisconsin real estate investors to build wealth across the Badger State. Whether you're working in Milwaukee, Madison, Green Bay, or beyond, our all-in-one platform supports your investing journey with:

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

Our Hard Money Loan program is crafted to offer Wisconsin investors fast, reliable, and cost-effective financing solutions to purchase, refinance, and renovate 1-4 unit residential investment properties throughout the state.

Whether your plan is to flip a Milwaukee bungalow for profit or hold a Madison duplex as a rental and later refinance into a DSCR loan, we’re excited to earn your trust and help you succeed.

Let’s dive into the OfferMarket Hard Money Loan Program tailored for Wisconsin!

What is a hard money loan?

A hard money loan is a short-term loan secured by a tangible asset—here, 1-4 unit residential real estate within Wisconsin—to buy, refinance, and rehab properties. This financing enables investors to quickly capitalize on Wisconsin’s diverse real estate market, whether in urban hubs like Kenosha or rural areas in central Wisconsin.

Commonly called “bridge loans” or “fix and flip loans,” hard money loans are popular among Wisconsin investors for their speed and flexibility.

Hard money loan scenarios in Wisconsin

In Wisconsin’s real estate market, hard money loans are frequently utilized for these key situations:

  • Purchase and renovate a dated or distressed property—for example, buying a Milwaukee home that needs updates without using extensive personal cash.
  • Refinance a property bought with cash that requires rehab—such as acquiring a Green Bay duplex off-market and needing quick financing to renovate.
  • Refinance an existing loan on a worn property to complete renovations—like finishing a project in Madison where the original loan term is expiring but the rehab is ongoing.
  • Buy a property without rehabbing it—for instance, snapping up undervalued Wisconsin properties to resell "as-is" for a profit.
  • Refinance a cash purchase without rehab—tapping into equity on a recently bought property to fund your next Wisconsin investment.
  • Refinance a completed rehab when you need more time to sell or refinance—especially useful in slower Wisconsin markets.

How it works in Wisconsin

A hard money loan in Wisconsin consists of two parts:

Initial Advance — funds used toward the purchase price, wired directly to the title company at closing.

Construction Holdback — funds reserved for renovation, released via draw reimbursements as work progresses.

Hard Money Loan Components

Wisconsin investors often combine both for optimal leverage. Some prefer only an initial advance if they self-fund rehab, or just a holdback if they bought a property with cash but need rehab funding.

Your exit strategy in Wisconsin might be to flip for quick profits or hold and refinance with a rental loan like a DSCR loan. Many Wisconsin investors adapt based on local market shifts—from Madison’s tight rental market to Milwaukee’s flipping hotspots.

For example, you might pursue the BRRRR method—buy, rehab, rent, refinance, repeat—in Milwaukee. But if rental demand softens, you could instead flip the property for a gain and reinvest elsewhere.

Or, if a planned flip in Wisconsin’s market cools off, you may rent the property, refinance into a DSCR loan with minimal penalties, and sell once the market rebounds.

The flexibility of dual exit strategies is crucial in Wisconsin’s often dynamic markets.

Who uses hard money loans in Wisconsin?

Wisconsin’s real estate investors frequently rely on hard money loans for their unique advantages, including:

Fix and flip investors (“flippers”) — actively buying distressed homes in neighborhoods like Milwaukee’s Bay View or Racine, rehabbing quickly, and selling for profit.

Rental property investors (the “BRRRR Method”) — purchasing homes in Madison or Appleton, renovating, renting, refinancing into long-term loans, and repeating the process to build a rental portfolio.

Many Wisconsin investors employ hybrid strategies, flipping some properties and holding others as rentals, adjusting based on local market trends and neighborhood demand.

Hard Money Loan Program Guidelines

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

Our commitment to Wisconsin investors is to help you manage risk while building wealth through real estate. We pride ourselves on a default rate well below 0.5%, thanks to rigorous underwriting and support.

Wisconsin’s varied markets—from urban Milwaukee to rural northern counties—present different challenges. Projects with high rehab complexity pose greater risks, especially for less experienced borrowers. Our goal is to help you select projects that fit your expertise and liquidity to avoid delays and cost overruns.

As your hard money lender, OfferMarket partners with you as your advisor and capital provider to set clear expectations and promote successful project execution in Wisconsin.

Initial Advance

The initial advance depends on your experience, creditworthiness, and deal specifics, including the property location within Wisconsin.

Factors considered include:

  • Number of investment properties owned in the last 24 months

  • Verifiable rehab projects completed in the last 5 years

  • Credit score minimum of 680, ideally 720+ for the guarantor

  • Increased leverage for licensed Realtors, General Contractors, and Professional Engineers active in Wisconsin

If the purchase price exceeds the appraised “As Is” value, the advance will be based on the lower “As Is” valuation, not the contract price.

Your exit strategy also impacts your advance:

  • If selling, a minimum 30% gross margin and $15,000 profit is expected.

  • If renting and refinancing, projected DSCR after repairs should be at least 1.1.

Rural Wisconsin properties will have stricter limits and require at least moderate experience.

Experience-based Tiers for Wisconsin Investors

Tier Verifiable Experience (Completed rehab projects)
1 0
2 1 to 2
3 3 to 4
4 5 to 9
5 10+

Initial Advance by Tier

Tier Initial advance (% of purchase price)
1 80%*
2 85%
3 85%
4 90%
5 90%

* 85% advance is available by exception for borrowers with excellent credit and liquidity.

Adjustments to Initial Advance

Scenario Adjustment
Credit score below 720 -5%
Full gut rehab -5%
New Wisconsin market (unfamiliar regions) -5%
Licensed Wisconsin Realtor Up to +5%
Licensed Wisconsin General Contractor Up to +10%
Licensed Wisconsin Professional Engineer Up to +10%
Rural Wisconsin property -20% (minimum 3 projects experience required)

Rehab Scope Classification

Rehab Scope Definition
Light Rehab budget less than 25% of purchase price
Moderate Rehab budget between 25% and 49.99% of purchase price
Heavy Rehab budget between 50% and 99.99% of purchase price
Extensive Rehab budget exceeds 100% of purchase price — includes additions, expansions, accessory dwelling units (ADUs), or low purchase price “lopsided deals”*

* A “lopsided deal” refers to properties where the As Is value or purchase price is less than the rehab budget. Refer to LTFC limits below.

Rehab Scope Eligibility

Tier 1 2 3 4 5
Experience (completed projects) 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

Loan-to-After-Repair-Value (LTARV) Limits

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%

Loan-to-Full-Cost (LTFC) Limits

LTFC caps the loan amount relative to total project cost (purchase price plus rehab budget) to ensure borrower investment in higher-risk extensive rehabs.

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 Example

Purchase price: $100,000
Tier: 1 (0 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

5 Projects Experience Example

Purchase price: $100,000
Tier: 4
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

Refinancing Using As Is Value in Wisconsin

OfferMarket typically underwrites based on your cost basis (purchase price plus sunk costs) to maintain borrower equity. However, for seasoned Wisconsin properties valued higher “As Is” than cost basis, refinancing may be available if:

  • Property is habitable and in condition rating C4 or better

  • Property has been owned for 3+ years

  • Previous lender payoff statement shows no penalties or fees

  • Credit score 680+

  • Experience Tier 3 or higher with 4+ similar rehab projects

  • Market comps support higher As Is valuation

  • The property was rented, tenants vacated, and now renovation is planned to list for sale

Wisconsin Wholesaler Transactions

For hard money loans in Wisconsin involving wholesaler transactions, OfferMarket will include the assignment fee or double-close price increase in your cost basis for the initial advance, up to 20% of the original purchase price (A-B contract). Any excess beyond this threshold must be covered by the borrower.

OfferMarket requires a full set of contracts and assignments (A-B, B-C) along with the wholesaler’s operating agreement to review such transactions. All wholesaler deals must be conducted at arm’s length, and we do not finance finder’s fees or referral fees.

Construction Holdback

The construction holdback portion of your Wisconsin hard money loan is disbursed based on draw requests and verified progress against your approved scope of work. This draw reimbursement process supports transparency and risk management for your rehab project.

If you have sufficient liquidity to self-fund your rehab, you may opt out of the construction holdback component entirely.

For loans of $100,000 or greater, interest is charged only on funds actually disbursed (“as disbursed” interest accrual).

Criteria Details
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% reimbursed (receipt required)
Draw inspection App-based self-inspection
Draw turnaround 0 to 2 business days
Draw fee $270
Wire fee $30

Appraisal and In-House Valuation for Wisconsin Properties

A valuation is mandatory for all OfferMarket hard money loans in Wisconsin. Depending on your situation, we may require:

  • A full interior appraisal

  • An exterior appraisal

  • An in-house valuation

In-House Valuation Eligibility in Wisconsin

For borrowers meeting these criteria, OfferMarket reserves the right to request a full or exterior appraisal at its discretion.

Exterior Appraisal Scenarios

Exterior appraisals are accepted for:

  • REO sales

  • Foreclosure auctions

  • Sheriff’s sales

  • Online auctions

  • Bankruptcy sales

Appraisals must be dated within 120 days of closing, or recertified if 120–179 days old.

Interior Appraisal Requirements

Any other situations require a full interior appraisal, with forms appropriate for:

  • Single-family homes: Form 1004 + 1007 ARV with As Is value

  • 2-4 unit properties: Form 1025 + 216 ARV with As Is value

  • Condominiums: Form 1073 + 1007 ARV with As Is value

OfferMarket handles ordering appraisals through approved management companies, with clients responsible for appraisal fees before funding.

Appraisal Transfer

If your appraisal wasn’t ordered through OfferMarket, you may transfer it to us if the following conditions are met:

  • The appraisal was ordered via an approved appraisal management company

  • The appraisal is less than 180 days old at loan closing

  • If the appraisal is 120 to 179 days old, a recertification is required before closing

  • The transferring lender provides OfferMarket with:

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

    • The full appraisal report in PDF and XML formats

    • Proof of appraisal payment (invoice)

Scenario: Stabilized Hard Money Loan

If your Wisconsin property has no deferred maintenance and an appraisal condition rating of C4 or better, OfferMarket will fund up to 75% of the As Is value. This scenario is termed “stabilized” because the property is ready for rental or sale without rehab.

Criteria Requirement
Property Type Single family, duplex, triplex, or fourplex
Experience Tier 4 or higher
Credit Score 720+
Rural Location No
New Wisconsin Market No
Maximum LTARV 70%
Criteria Guideline
Maximum LTV Tier 1 & 2: 70%; Tier 3-5: 75%
Maximum LTFC Tier 1 & 2: 80%; Tier 3-5: 90%
Appraisal Condition C1, C2, C3, or C4
Loan Term (maximum) 12 months

Key Loan Details for Wisconsin 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: single-family, duplex, triplex, fourplex, condos, townhomes
Property Minimum 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 ARV (LTARV) Up to 75%
Down Payment Minimum $10,000 for purchase prices under $100K
Loan Term Standard 12 months; 18-24 months available for select 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 Wisconsin and other eligible states
Amortization Interest-only with balloon payment at maturity
Interest Accrual Method Loans < $100K: full amount; ≥ $100K: as disbursed

Extensions for Wisconsin Hard Money Loans

Hard money loans are designed as short-term financing solutions, typically 12 to 24 months. Extensions are not ideal and should be avoided because they increase costs and risk.

To minimize extension risk in Wisconsin, focus on:

  • Hiring experienced general contractors with solid references

  • Avoiding aggressive rehab scopes beyond your expertise

  • Steering clear of markets with slow permits or zoning

  • Ensuring you have immediate access to the property (avoid tenants with leases or holdovers)

  • Maintaining a dual exit strategy 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

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

Interest Reserves

Interest reserves are funds collected at closing and held in escrow to cover accrued interest during the loan term. These reserves help borrowers manage cash flow by delaying monthly interest payments until drawn down.

Interest Reserve Scenario
0 months At lender’s discretion
1 month Guarantor FICO 700+
3 months Guarantor FICO between 660 and 699
6 months Guarantor FICO between 660 and 699 AND/OR credit/background concerns

Financed Interest Payments in Wisco2

To help protect your liquidity and credit score during renovations, OfferMarket may allow you to finance your interest payments. Instead of monthly interest payments, interest accrues and is added to your loan payoff balance.

For example:

  • Loan Amount: $100,000

  • Interest Rate: 12%

  • Months Held: 9

  • Accrued Interest: $9,000 ($100,000 × 12% ÷ 12 × 9)

  • Payoff Statement: $100,000 principal + $9,000 interest

This option is designed to help Wisconsin investors maintain cash flow during their rehabs.

Property Sourcing Guidelines for Wisconsin

When sourcing properties in Wisconsin, OfferMarket requires:

  • General Contractor agreements or explanations if not required, especially for new markets.

  • Additional documentation and review for properties with prior price increases, wholesale deals, or non-arms-length transactions.

  • Architect or engineer letters (or permits) for condos, conversions, and significant renovations.

  • Complete submissions including purchase contracts, settlement statements, payoff letters (if refinancing), track record, and formation documents.

Insurance Guidelines for Wisconsin Hard Money Loans

Proper insurance is critical to protect your investment property, your business, and yourself. Hard money loan insurance in Wisconsin often includes Builders Risk or Fix and Flip policies, covering properties under construction, vacant, or in poor condition.

Coverage Type Required Limit
Dwelling Replacement cost or loan amount (no coinsurance)
Liability $1 million per occurrence / $2 million aggregate
Builders Risk Included
Flood Greater of $250,000 or loan balance (if in FEMA flood zone)

Insurance Policy Details

  • AM Best rating A- VIII or higher

  • Special form policy type

  • Deductibles between $1,000 and $5,000

  • Mortgagee and additional insured designation

  • No windstorm, hail, or named storm exclusions

  • 30-day cancellation notice required

Pro tip: Upon taking ownership of a Wisconsin property, promptly install smoke detectors, secure locks, and security cameras to comply with insurance policies and avoid claim denials.

Frequently Asked Questions About Wisconsin Hard Money Loan Program

What states does OfferMarket fund hard money loans?

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

Can I have more than one hard money loan at a time in Wisconsin?

Yes! Many Wisconsin real estate investors hold multiple hard money loans simultaneously. However, our top priority is helping you manage risk. If your liquidity or project pace suggests additional loans may stretch you too thin, we will advise you accordingly.

Are hard money loans considered commercial loans?

Yes. Hard money loans are business purpose loans issued to your business entity (LLC or corporation) and classified as commercial loans under Wisconsin regulations.

What is the minimum loan amount?

Our minimum loan amount is $25,000 for Wisconsin and all other funded states.

What property types are eligible?

We finance non-owner occupied 1-4 unit residential properties in Wisconsin, including single-family homes, townhomes, small multifamily (2-4 units), and warrantable condos.

Properties like 2-4 unit mixed use, 5-9 unit multifamily, and commercial properties are not eligible under this program but may be financed through other loan options at OfferMarket.

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

For hard money loans, we typically use Loan-to-After-Repair Value (LTARV). Your initial advance is based on the lower of the As Is value or the purchase price in your contract or previous closing. LTARV is the total loan amount divided by the after-repair value determined by appraisal or in-house valuation.

What credit score is required in Wisconsin?

A minimum FICO score of 680 is required for Wisconsin borrowers. Scores between 660 and 679 may be considered on an exception basis, subject to underwriting.

Are experience requirements strict?

Experience is not mandatory. However, verifiable rehab project experience can increase your leverage and improve loan terms. OfferMarket uses a tiered experience system to assess your eligibility and advance amounts.

Does wholesaling count as experience?

No. Being a wholesaler does not count towards your rehab experience because you are not financially responsible for the rehab’s completion.

What documentation is needed to apply?

Our Loan File system is designed to simplify processing and expedite loan approval and funding for Wisconsin borrowers. Documentation you provide is securely stored to speed up future applications.

Purchase Transaction Requirements

Document Description
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 used to determine ARV
Appraisal Report Paid appraisal uploaded to loan file
Bank Statements Two most recent statements per guarantor (personal or business accounts)
Letter of Explanation If requested (e.g., for large deposits or credit issues)

Refinance Transaction Requirements

Document Description
Loan 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 List and costs of expenses already incurred
Scope of Work Detailed rehab budget guiding property rehab
Appraisal Report Paid appraisal uploaded to loan file
Bank Statements Two most recent statements per guarantor (personal or business accounts)
Letter of Explanation If requested (e.g., large deposits or credit issues)

Are there special requirements for loans over $1M in Wisconsin?

Loans exceeding $1 million (up to our $2 million maximum) in Wisconsin are subject to enhanced underwriting guidelines to manage the increased risk associated with larger transactions:

Criteria Explanation
Experience Minimum of 3 similar or higher-priced rehab projects strongly preferred
Market Liquidity At least 3 comparable sales (comps) within a 2-mile radius on the MLS in the last 6 months
Credit Score Minimum 680 with at least 5 tradelines showing 24 months of history
Rural Designation Not eligible if the property is designated rural by CFPB, USDA, or appraisal report
Track Record Required for each member of the borrowing entity

These requirements help ensure sufficient borrower expertise and local market support for larger Wisconsin real estate investments.

Glossary of Key Terms

Term Definition
ADU Accessory Dwelling Unit: A secondary, self-contained housing unit on the same tax parcel as a main Wisconsin single-family home.
Arms-length A transaction between independent parties with no special relationship, ensuring fair market value.
Non Arms-length A transaction where personal, financial, or business connections may affect fairness, pricing, or terms.
Initial Advance The portion of the total loan wired to the title company at closing for the purchase price.
Construction Holdback Funds reserved for property rehab, disbursed via draw requests as work progresses.
Interest Reserves Funds collected at closing held in escrow to cover accrued interest during the loan term.
LOE Letter of Explanation: A document clarifying specific borrower details, like credit or background issues.
LTC Loan to Cost: Ratio of the loan amount to the purchase price plus rehab costs.
LTFC Loan to Full Cost: Ratio of the loan amount to total project cost (purchase price + rehab).
LTV Loan to Value: Ratio of the loan amount to the property's As Is value.
LTARV Loan to After Repair Value: Ratio of the loan amount to the property's value post-renovation.
As Disbursed Interest Interest accrues only on funds already drawn (purchase advance + rehab draws).
Full Boat Interest Interest accrues on the entire loan amount, regardless of draws disbursed.
Lopsided Deal When the rehab budget exceeds the purchase price or As Is value, common in extensive Wisconsin rehabs.
GC Agreement Contract with a General Contractor outlining management and execution responsibilities.
DSCR Debt Service Coverage Ratio: Property income divided by debt obligations, crucial for rental refinance strategies.

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Instant Hard Money Loan Quote for Wisconsin Investors

OfferMarket Capital LLC specializes in private lending for 1-4 unit residential real estate investors across Wisconsin. Our mission is to help you build wealth through real estate by providing fast, reliable, and tailored hard money loans.

Thousands of Wisconsin investors benefit from OfferMarket every month. Membership is free and includes:

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☂️ Insurance rate shopping
🏚️ Off market properties
💡 Market insights


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