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Pennsylvania Fix and Flip Loan

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Last Updated: April 14, 2025

Are you ready to tap into Pennsylvania's thriving real estate market? Whether you’re flipping homes in the vibrant centers of Philadelphia, Pittsburgh, or Harrisburg, or targeting charming properties in smaller towns like Lancaster and Erie, OfferMarket’s Fix and Flip Loan Program is designed to help you transform your investment ideas into profitable ventures. We supply fast, reliable, and competitively priced capital to support the purchase and renovation of residential properties—catering to both newcomers and seasoned investors alike.

Let’s explore how our program works in Pennsylvania, why now is an opportune time to dive into the market, and how OfferMarket’s financing can drive your next successful project.

What is a Fix and Flip Loan?

A Fix and Flip Loan—often referred to as a "hard money loan" or "bridge loan"—is specifically engineered to help you acquire and rehabilitate properties with the goal of selling for a profit or refinancing into rental units. At OfferMarket, your loan is structured in two key components:

Initial Advance: Up to 90% of the purchase price—disbursed directly to the title company at closing.
Construction Holdback: Up to 100% of your rehabilitation costs—released through draw reimbursements as the work progresses.

The flexibility in exit strategy means you choose whether to flip quickly for a profit or refinance into a rental asset. With market conditions ever changing, a flexible exit approach is the key to adapting successfully.

Why Pennsylvania’s Real Estate Market Is Ideal for Fix and Flip Projects

Pennsylvania offers a dynamic and steadily growing real estate environment. From the bustling urban energy in Philadelphia and Pittsburgh to the historic charm found in smaller towns like Lancaster or Erie, the Keystone State presents opportunities for every type of investor. Consider these key factors:

Robust Economic Environment: Thriving sectors such as healthcare, education, manufacturing, and technology create a stable job market that continuously supports the demand for updated homes.
Growing Rental and Resale Markets: A steady influx of new residents and young professionals drives the demand for quality rental properties while maintaining a vibrant resale market.
Diverse Property Inventory: Whether you’re interested in single-family homes, townhomes, or multi-unit buildings, Pennsylvania’s varied property offerings are ideal for both first-time flippers and seasoned developers.

Whether you’re focusing on a property in downtown Philadelphia or planning a suburban flip on the outskirts of Pittsburgh, OfferMarket's Fix and Flip Loan is your gateway to success in the Keystone State.

What You Get with Our Fix and Flip Loan Program in Pennsylvania

Below is a detailed breakdown of what to expect when you select OfferMarket for your fix-and-flip project in Pennsylvania. Every aspect is designed to provide clear, straightforward information so you can proceed with confidence.

1. Loan Amount Details

Criteria	Details
Minimum Loan Amount	$25,000
Maximum Loan Amount	$2,000,000
How It’s Determined	Based on the purchase price, rehabilitation budget, and ARV (After Repair Value). Our loans are structured to ensure you have adequate capital for every facet of your project.

2. After Repair Value (ARV) Requirements

Minimum ARV: $100,000 – established to ensure project profitability.
Maximum Loan-to-ARV (LTARV): Up to 75%, with adjustments according to experience—70% for more complex rehabs or less seasoned investors.
ARV Calculation:
We use appraisal reports or in-house valuations to quickly and accurately determine your property's post-renovation value

3. Funding Breakdown

Funding Component	Details
Initial Advance	Up to 90% of the purchase price (80% for beginners, 90% for experienced investors).
Construction Holdback	Up to 100% of rehab costs, disbursed through self-serve draw requests.
Down Payment	Minimum $10,000 required for properties under $100K.
Draw Schedule	Flexible with no set minimum or maximum number of draws (e.g., 50% funding for materials delivered but not yet installed).

4. Interest Rate and Fees

Fee	Amount
Interest Rate	Market-based, tailored to each deal individually.
Origination Fee	1.5% to 2 points (with a $2,000 minimum).
Other Fees	$270 per draw; $30 wire fee; appraisal costs are borne by the borrower.
Interest Accrual	Loans under $100K: Accrue on the full amount. Loans over $100K: Accrue only on funds disbursed.

5. Loan Term

Duration: Standard term of 12 months, with potential extensions available up to 18–24 months for longer projects.
Extensions: Permitted for up to 50% of the original term (for example, an extra 6 months on a 12-month loan).
Extension Fees: 1% for the first 3-month extension, 2.5% for a 6-month extension.

6. Repayment Structure

Payment Type: Interest-only payments during the term with a balloon payment at the conclusion.
Prepayment Penalty: None—early repayment is free of penalties.
Recourse: Full recourse is required, with 51% of the borrowing entity’s value for purchases and 100% for refinancing.

7. Exit Strategy Requirements

For a Sale:
- Minimum 30% ROI.
- At least $15,000 in profit.
For Refinancing:
- Minimum 1.1 DSCR (Debt Service Coverage Ratio) after repairs.
Flexibility:
Choose between flipping or refinancing based on evolving market conditions—our program supports both strategies in Pennsylvania’s dynamic real estate arena.

8. Eligibility Criteria

Criteria	Details
Experience	Not mandatory. Beginners start at Tier 1 (80% advance) while seasoned investors can progress up to Tier 5 (90% advance).
Credit Score	680 minimum, with potential flexibility for scores between 660-679.
Borrowing Entity	Must be set up as an LLC or Corporation.
Cash Reserves	Cash to close plus 25% of the rehab budget in liquid assets is required.

9. Project and Property Requirements

Requirement	Details
Eligible Property Types	1-4 unit residential properties (including single-family homes, duplexes, triplexes, quadplexes, condos, townhomes, and PUDs).
Minimum Square Footage	Single-family: ≥ 700 sq ft; For 2-4 units: ≥ 500 sq ft per unit; Condo: ≥ 500 sq ft.
Maximum Acreage	5 acres—ideal for rural flips in Pennsylvania.
Rehab Scope	Light, moderate, heavy, and extensive rehab scopes are permitted based on investor experience.

10. Risk and Approval Process

Underwriting:
We assess ARV, rehab scope, market conditions, and credit profile to determine the optimal financing for your project.
Valuation:
An appraisal report or our in-house valuation is required to establish ARV.
Approval Timeline:
- Draw approvals typically occur within 0–2 days.
- Initial funding is determined by the speed of documentation submission—OfferMarket ensures a swift and efficient process.
Default Rate:
Fewer than 0.5% of our loans have ever defaulted, underscoring our commitment to your success.

11. Support and Flexibility

Guidance:
Our experienced deal advisors are with you every step of the way, offering access to rehab calculators and expert advice.
Rehab Oversight:
App-based draw inspections provide full transparency and control throughout each phase of your project.
Advanced Draws:
Funds are disbursed at your discretion and approved as needed to ensure you receive the capital when necessary.

12. Transparency and Fine Print

Sample Costs:
For a $225,000 Pennsylvania property, an experienced investor (Tier 4) might incur approximately $19,312.50 in interest over 9 months, along with total fees around $2,500.

Hidden Costs:
All fees—including draw fees ($270), wire fees ($30), and extension fees—are fully disclosed upfront.

Rural and Complex Projects:
Projects in more rural settings may receive a 20% reduction in advance and require 3+ years of investor experience.

Example: Flipping a $225,000 Property in Pennsylvania with OfferMarket

Let’s walk through a real-world scenario in Pennsylvania:

Purchase Price: $225,000
Rehab Budget: $55,000 (a moderate scope, roughly 24% of the purchase price)
ARV: $335,000 (determined based on local market comparables)
Your Profile: Experienced Investor (Tier 4) with a 720 credit score

Loan Breakdown:

Loan Component	Amount
Initial Advance	90% of purchase price = $202,500
Construction Holdback	100% of rehab costs = $55,000
Total Loan Amount	$257,500
Down Payment	$22,500
Interest Rate	10% (market quote)
Interest (9 Months)	Approximately $19,312.50 (accrued on funds disbursed)
Fees	$2,500 total (including origination, draw, and wire fees)

Profit Calculation:

Sale Price (ARV): $335,000
Profit:
Profit = $335,000 − $225,000 − $55,000 − $19,312.50 − $2,500 ≈ $33,187.50

With robust ROI, this example demonstrates that OfferMarket’s financing is perfectly suited for Pennsylvania fix-and-flip opportunities.

Required Documentation for Fix and Flip Loans

At OfferMarket, we streamline the loan process to make it seamless and efficient. Your documentation is securely stored within your OfferMarket account for fast access in future applications. Below is the required checklist for both purchase and refinance transactions.

Purchase Transaction Requirements

Required Document	Details
Purchase Contract	Fully executed by both buyer and seller.
Credit Report	A soft tri-merge credit report for each member of the borrowing entity acting as a guarantor.
Background Report	Required for each member of the borrowing entity.
Track Record	Required for each member of the borrowing entity.
ID Verification	Government-issued ID (e.g., driver’s license, passport, or similar).
Borrowing Entity Documents	Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9.
Scope of Work	A detailed rehab budget used to calculate ARV.
Appraisal Report	A link to pay for the appraisal invoice will be provided; the appraisal is then uploaded to your loan file.
Bank Statements	The two most recent statements for each guarantor. Personal accounts (bank, brokerage, retirement) are acceptable.
Letter of Explanation	Provided if requested by our underwriting team (e.g., for large deposits, late payments, or background issues).

Refinance Transaction Requirements

Required Document	Details
Settlement Statement	Fully executed by both buyer and settlement agent.
Credit Report	A soft tri-merge credit report for each member of the borrowing entity acting as a guarantor.
Background Report	Required for each member of the borrowing entity.
Track Record	Required for each member of the borrowing entity.
ID Verification	Government-issued ID (e.g., driver’s license, passport, or similar).
Borrowing Entity Documents	Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9.
Sunk Costs	Detailed line items and the associated costs already incurred.
Scope of Work	A detailed rehab budget to calculate ARV and direct rehab work.
Appraisal Report	A link to pay the appraisal invoice will be provided; the report is then uploaded to your loan file.
Bank Statements	The two most recent statements for each guarantor. Personal accounts (bank, brokerage, retirement) are acceptable.
Letter of Explanation	Provided if requested by our underwriting team (e.g., for large deposits, late payments, or background items).

Special Requirements for Loans Over $1M

For loans exceeding $1M (up to the $2M cap), adjusted guidelines apply due to the elevated stakes. Here’s what is necessary to qualify:

Criteria	Explanation
Experience	Minimum of 3 completed projects, preferably at similar or higher price points.
Market Liquidity	At least 3 comparable sales within a 2-mile radius, sold on the MLS within the past 6 months.
Credit Score	A minimum of 680 FICO with at least 5 trade lines and a 24-month credit history.
Rural Designation	Not eligible if categorized as rural by the CFPB and USDA or per the appraisal report.
Track Record	Required for each member of the borrowing entity.

Having your paperwork in order ensures fast, accurate loan processing—resulting in quicker approvals, smoother funding, and positioning you for success in your fix-and-flip projects. With OfferMarket, lengthy approval processes are a thing of the past as your documents remain securely stored for future applications.

Why Choose OfferMarket for Fix and Flip Loans

At OfferMarket, we’re more than a lender; we’re your strategic partner in real estate wealth-building. With a remarkable default rate of under 0.5% across our lending portfolio, we are fully committed to the success of investors like you. Here’s what sets us apart:

Expert Risk Management:
We provide structured guidance to ensure every deal is a strategic win.
Flexible Financing:
Loan terms are customized to suit your project, featuring competitive rates and a variety of financing options.
Comprehensive Support:
From expert loan advice to detailed rehab planning, our dedicated team supports you at every step.
Fast Funding:
Rapid approvals and swift disbursements mean you can launch your project immediately.

Key Features of Our Fix and Flip Loans

Feature	Details
Loan Amounts	$25,000 to $2,000,000—ideal for projects of any size.
High Leverage	Financing available up to 90% of the purchase price and 100% of rehab costs, with a maximum of 75% LTARV.
No Experience Required	Accessible for new investors, with higher leverage available for seasoned flippers.
Fast Funding	Swift initial advances and rapid draw processing (0–2 business days) for construction expenses.
Flexible Terms	Loan durations ranging from 12 to 24 months, with no prepayment penalties.
Tailored Risk Management	Experience tiers and rehab scope requirements ensure projects stay manageable.
Nationwide Reach	Available across the United States, with local market expertise tailored to Pennsylvania.
Transparent Costs	Competitive rates, 1.5–2 points in fees, with no hidden charges.

Ready to Flip in Pennsylvania? Request Your Loan Now!

Pennsylvania’s real estate market is primed for your next fix-and-flip endeavor. With OfferMarket’s Fix and Flip Loan Program, you receive the capital, expert guidance, and flexible terms essential for success. Our streamlined approval process, clear documentation, and rapid funding ensure you can start your profitable investment right away.

Thousands of real estate investors get value from OfferMarket every month. Membership is entirely free and includes the following benefits:

💰 Private lending
☂️ Insurance rate shopping
🏚️ Off market properties
💡 Market insights

Does the Buyer need to provide the inspection report to the Seller?

If a buyer requests repairs or concessions, they are required to share the home inspection report with the seller in real estate transactions.

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