Virginia Fix and Flip Loan

Last Updated: April 14, 2025

Are you ready to maximize your gains in Virginia’s vibrant real estate market? Whether you’re planning to renovate a historic rowhome in Richmond or a single-family property in Norfolk, OfferMarket’s Fix and Flip Loan Program is designed to help you tap into the increasing demand for refreshed homes across Virginia. From newcomers to seasoned professionals, we offer swift, dependable, and cost-effective financing for purchasing and renovating residential properties throughout the state.

Our mission is to help you build wealth through real estate by supplying the right capital, expert support, and the flexibility to succeed. Let’s explore how you can leverage our program to launch your next Virginia real estate project!

What is a Fix and Flip Loan?

A Fix and Flip Loan—often known as a “hard money loan” or “bridge loan”—is crafted to enable you to purchase and renovate a property rapidly, with the goal of selling it at a profit or refinancing it into a long-term rental. With OfferMarket, your financing is divided into two critical components:

• Initial Advance: Up to 90% of the purchase price to secure the property.

• Construction Holdback: Up to 100% of your renovation costs, released through draw reimbursements as you progress with the upgrades.

Whether you’re transforming a city townhouse in Alexandria or revamping a coastal home in Virginia Beach, our dual exit strategies—flipping for profit or refinancing into a rental—offer the flexibility to adapt to Virginia’s ever-changing market conditions.

Why Virginia Is Perfect for Fix and Flip Projects

Virginia boasts a robust and diverse real estate landscape that creates endless opportunities for fix-and-flip investors. With thriving urban centers like Richmond, Norfolk, Alexandria, and Virginia Beach, the state presents a blend of urban, suburban, and rural properties ready for renovation. Whether you’re targeting historic neighborhoods, emerging suburban areas, or properties near the coast, Virginia offers a wealth of investment potential.

Key highlights of the Virginia market include:

• Growing Job Market: Industries such as defense, tourism, technology, and education are flourishing, making Virginia an attractive locale for real estate investments.

• High Rental Demand: With a pro-business environment and strong economic foundations, areas like Alexandria and Virginia Beach exhibit consistent rental demand.

• Stable Population Growth: A steady influx of residents drives the need for modernized and updated homes, creating an ideal environment for fix and flip projects.

OfferMarket’s Fix and Flip Loan is perfectly aligned with Virginia’s market, offering rapid funding, adaptable terms, and dedicated support for both urban and rural projects. Whether you’re just starting out or expanding your portfolio, Virginia’s dynamic real estate scene is primed for investment.

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

Below is a comprehensive breakdown of our program—detailing everything from financing options and fees to terms and project requirements—ensuring you have all the necessary tools for success.

1. Loan Amount Details

• Minimum Loan Amount: $25,000
  Ideal for modest projects like a condo renovation in Norfolk or a townhouse update in Richmond.

• Maximum Loan Amount: $2,000,000
  Loans exceeding $1M require a minimum of 3+ years of experience and strong comparable sales data.

How It’s Determined:
Your loan size is determined by your purchase price, rehab budget, and After Repair Value (ARV), ensuring you have the capital required to complete your project.

2. After Repair Value (ARV) Requirements

• Minimum ARV: $100,000
  This threshold is set to ensure your project remains profitable and meets Virginia’s market criteria.

• Maximum Loan-to-ARV (LTARV): Up to 75%, with adjustments based on your experience and the scope of your renovations.
  (For more extensive rehabs, beginners may receive up to 70% LTARV.)

ARV Calculation:
We rely on appraisal reports (for example, forms 1004 + 1007 for single-family homes) or in-house valuations to deliver fast, accurate assessments of your property’s post-renovation value.

3. Funding Breakdown

• Initial Advance: Up to 90% of the purchase price, tailored by your experience tier and credit profile (e.g., 80% for Tier 1 investors and up to 90% for those at Tier 5 with 10+ projects).

• Construction Holdback: Up to 100% of your rehab costs, processed through self-service draw requests with a 0-2 business day turnaround.

• Down Payment: A minimum of $10,000 is required for properties under $120K—demonstrating your commitment to the project.

Draw Schedule:
There is no set limit on the number of draws. Typically, 50% of funds may be reserved for materials delivered but not yet installed.

4. Interest Rate and Fees

• Interest Rate: Flexible and responsive to market trends, with custom rates tailored per project.

• Origination Fee: Ranges from 1.5% to 2 points, with a minimum fee applicable.
  For a $120,000 loan, the fee would be approximately $2,400.

Other Fees:

• Draw Fee: $270

• Wire Fee: $30

• Appraisal Costs: Borne by the borrower.

Interest Accrual:

• Loans under $120,000 accrue interest on the full amount (Full Boat).

• Loans of $120,000 or more accrue interest solely on the funds that have been disbursed (As Disbursed).

5. Loan Term

• Duration: The standard term is 12 months, with options extending to 18–24 months for projects that require more time.

• Extensions:
  You may extend your loan for up to 50% of the original term (for example, a 6-month extension 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 due at maturity—providing flexibility during the renovation process.

• Prepayment Penalty: None. You may pay off your loan early without incurring additional charges.

• Recourse: Full recourse applies—51% of the borrowing entity must guarantee the loan for purchase projects, and 100% for cash-out refinances.

7. Exit Strategy Requirements

• Sale:
  Requires a minimum 30% Return on Investment (ROI) and at least $15,000 in profit.

• Refinance:
  Projects should aim for a post-renovation Debt Service Coverage Ratio (DSCR) of at least 1.1.

Flexibility:
The dual exit strategy allows you to choose between selling for profit or refinancing based on Virginia’s market dynamics.

8. Eligibility Criteria

• Experience: Not required; investors begin at Tier 1 (80% advance) and can progress to Tier 5 (90% advance) as they accumulate experience.

• Credit Score: A minimum score of 680 is preferred, though exceptions can be made for scores between 660–679 with appropriate adjustments.

• Borrowing Entity: Must be set up as an LLC or Corporation.

• Cash Reserves: You must have sufficient funds to cover closing costs plus 25% of your renovation budget in liquid assets (such as bank accounts, brokerage, or retirement accounts).

9. Project and Property Requirements

• Eligible Property Types:
  1–4 unit residential properties, including single-family homes, duplexes, triplexes, quadplexes, condos, townhomes, and Planned Unit Developments (PUDs).

• Minimum Square Footage:

  • Single-family: At least 700 sq ft

  • 2–4 units: Minimum 500 sq ft per unit

  • Condo: Minimum 500 sq ft

• Maximum Acreage:
  Up to 5 acres—ideal for rural Virginia properties.

• Rehab Scope:

  • Light (under 25% of the purchase price)

  • Moderate (25%–49.99%)

  • Heavy (50%–99.99%)

  • Extensive (100%+ of the purchase price, including additions or expansions)

• Location:
  Available state-wide in Virginia, with specific restrictions for rural properties (which incur a -20% advance adjustment and require a minimum of 3 years of experience).

10. Risk and Approval Process

• Underwriting:
  We conduct thorough analyses of ARV, rehab scope, investor experience, credit history, and local market conditions to assess risk and determine the optimal financing terms.

• Valuation Method:
  Depending on the project and your experience, we use either an appraisal report or an in-house valuation.

• Approval Timeline:

  • Draw Approvals: Typically within 0–2 business days.

  • Initial Funding: Rapid once all required documents are submitted.

• Default Rate:
  Historically, less than 0.5% of our originated loans have defaulted.

11. Support and Flexibility

• Guidance:
  Your dedicated deal advisor assists in managing risks and provides access to valuable tools such as detailed rehab calculators and scope-of-work guidance.

• Rehab Oversight:
  Self-service draw inspections offer full transparency and control over your project’s progress.

• Advanced Draws:
  Funds are released discretely to ensure you get the financing when you need it most.

12. Transparency and Fine Print

• Sample Costs:
  For a $175,000 Virginia property, we provide detailed cost breakdowns so you know exactly where every dollar is allocated.

• Hidden Costs:
  Fees—including draw fees ($270), wire fees ($30), and extension fees—are clearly disclosed upfront, leaving no surprises.

• Rural and Complex Terms:
  Rural projects incur a -20% advance adjustment, and projects with extensive renovations might be subject to lower LTARV limits (85–90%).

Required Documentation for Fix and Flip Loans

Our streamlined Loan File system is designed for efficient processing and quick approval. All submitted documents are securely stored in your OfferMarket account, easing future loan applications.

Purchase Transaction Requirements

Refinance Transaction Requirements

Special Requirements for Loans Over $1M

Loans above $1M (up to the $2M maximum) require additional documentation and stricter qualifications due to the higher stakes.

Why This Documentation Matters

Thorough documentation is the cornerstone of efficient and accurate loan processing. By submitting all necessary files at the outset, you not only expedite the approval process but also pave the way for smoother future transactions with OfferMarket. This proactive approach allows you to concentrate on turning your fix and flip project into a success.

Why Choose OfferMarket for Fix and Flip Loans

At OfferMarket, we’re more than just a lender—we’re a committed partner in your journey toward building real estate wealth. With a default rate of under 0.5% across our portfolio, our risk-sensitive approach and custom financing solutions empower investors of all experience levels. Whether you’re undertaking your first flip or scaling an established portfolio, our flexible loan options, competitive rates, and structured process ensure that you succeed in Virginia’s dynamic market.

Key Features of Our Fix and Flip Loans

Our fix and flip loans are designed to fuel your real estate ambitions with unparalleled flexibility and dedicated support:

• Loan Amounts: From $25,000 up to $2,000,000—catering to projects of any size.

• High Leverage: Up to 90% of the purchase price and 100% of rehab costs, with a maximum LTARV of 75%.

• No Experience Requirement: Accessible for new investors, with enhanced benefits for seasoned flippers.

• Fast Funding: Quick initial advances up to 90% and rapid processing of construction holdbacks (0–2 business days).

• Flexible Terms: Loan durations from 12 to 24 months, with interest-only payments and no prepayment penalties.

• Tailored Risk Management: Project eligibility is matched to your renovation scope and experience level.

• Statewide Availability: Serving all of Virginia with expert market support.

• Transparent Costs: Competitive rates, clear fee structures (1.5–2 points), and no hidden charges.

With OfferMarket, you receive a financing solution as driven as you are—streamlined, supportive, and built for success.

Ready to Flip in Virginia? Get Your Loan Now!

Now that you have all the details—loan amounts, ARV requirements, funding breakdowns, fees, terms, and more—it’s time to take the next step. Whether you’re embarking on your first project or expanding your seasoned portfolio, OfferMarket’s Fix and Flip Loan Program is your ideal partner in Virginia’s lucrative real estate market. With a proven track record and a focus on risk-managed financing, your success is our priority.

Virginia’s real estate market is bursting with opportunity. Don’t wait—begin your application today and transform your next project into a profitable venture. Request your loan now!

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