Iowa Fix and Flip Loan
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Last Updated: April 11, 2025
Welcome to OfferMarketâs Fix and Flip Loan Program, specifically designed for real estate investors in Iowa! Whether you're flipping homes in Des Moines, working on a project in Cedar Rapids, or exploring opportunities in more rural areas, our program gives you the capital and flexibility you need to succeed. Letâs break down how our loan program works and show you how you can make the most of Iowaâs thriving real estate market.
Why a Fix and Flip Loan in Iowa is a Smart Investment
Iowa offers a unique real estate investment opportunity with its diverse markets. From the growing metropolitan areas of Des Moines to the more affordable and quieter towns in rural Iowa, there's ample potential for profitable fix-and-flip projects. The state benefits from steady job growth, affordable housing, and rising property values, making it an attractive choice for real estate investors.
With a lower cost of living compared to other states and strong demand for both urban and rural housing, Iowa provides a favorable environment for flipping homes. Whether you're targeting a cozy suburban home or a more extensive renovation project in a smaller town, OfferMarketâs Fix and Flip Loan is here to provide you with the capital you need to make your investment a success.
What You Get with OfferMarketâs Fix and Flip Loan in Iowa
At OfferMarket, we offer a comprehensive loan program designed to meet the needs of investors in Iowa. Hereâs a breakdown of the loan programâs features:
1. Loan Amount Details
Minimum Loan Amount: $25,000 â Perfect for smaller, quick flips.
Maximum Loan Amount: $2,000,000 â For larger projects, though loans over $1M require 3+ years of experience and strong comparable sales (comps).
How It Works: Your loan size is based on the purchase price, rehab budget, and After Repair Value (ARV), ensuring you have the necessary funding to complete your project.
2. After Repair Value (ARV) Requirements
Minimum ARV: $100,000 â Helps ensure the profitability of your flip.
Maximum Loan-to-ARV (LTARV): Up to 75% â Adjusted by experience. Beginners may qualify for 70% for lighter rehabs, while experienced investors can get up to 75% for moderate rehabs.
Valuation: We use appraisal reports (e.g., 1004 + 1007 for single-family homes) or in-house valuations for accurate ARV estimates in Iowaâs market.
3. Funding Breakdown
Initial Advance: Up to 90% of the purchase price, based on your experience. Beginners receive 80%, while experienced investors get 90%. Adjustments may be made for credit scores under 720 or licensed contractors (+10%).
Construction Holdback: Up to 100% of rehab costs, disbursed through self-serve, app-based draw requests. Quick turnaround, usually 0-2 days.
Down Payment: Minimum of $10,000 required for properties under $100K.
Draws: No minimum or maximum for draws. For materials delivered but not yet installed, 50% of the cost is funded.
4. Interest Rates and Fees
Interest Rate: Flexible, based on current market conditions. For the most updated rate, contact us directly.
Origination Fee: 1.5 to 2 points (with a $2,000 minimum). For example, 2 points on a $100,000 loan equals a $2,000 fee upfront.
Other Fees: Draw fees of $270 per draw, wire fees of $30, and appraisal costs will be covered by you.
Interest Accrual: Loans under $100K accrue interest on the full loan amount, while loans over $100K accrue interest only on the funds disbursed.
5. Loan Term
Duration: Standard loan term is 12 months, with options for 18-24 months for specific projects.
Extensions: Up to 50% of your loan term (e.g., 6 months on a 12-month loan) for a fee of 1% for 3 months or 2.5% for 6 months.
6. Repayment Structure
Payments: Interest-only payments with a balloon payment due at maturity, keeping your cash flow flexible during the rehab process.
Prepayment Penalty: None. You can pay off your loan early without any extra charges.
Recourse: Full recourse, with 51% of your LLC or Corporation guaranteeing the loan for purchases (100% for refinances).
7. Exit Strategy Requirements
Sale: Minimum of 30% return on investment (ROI) and $15,000 profit upon sale.
Refinance: A minimum debt service coverage ratio (DSCR) of 1.1 post-repair for refinancing.
Flexibility: You can switch between flipping or renting based on the market conditions in Iowa, providing you with flexible exit options.
8. Eligibility Criteria
Experience: Not required. Beginners start at Tier 1 (80% advance), while pros at Tier 5 (90%) based on 10+ completed projects.
Credit Score: A minimum of 680 is required (exceptions for scores between 660-679).
Borrowing Entity: Must be an LLC or Corporation.
Cash Reserves: You must have enough cash to close, plus 25% of your rehab budget in liquid assets (bank, brokerage, or retirement accounts).
9. Project and Property Requirements
Eligible Properties: 1-4 unit residentialâsingle-family (âĽ700 sq ft), duplex/triplex/quadplex (âĽ500 sq ft per unit), condos (âĽ500 sq ft), townhomes, and PUDs.
Maximum Acreage: Up to 5 acresâperfect for rural Iowa flips.
Rehab Scope: From light rehabs (under 25% of the purchase price) to extensive renovations (100%+). Beginners are limited to light/moderate rehabs.
Location: We lend in Iowa, excluding AK, AZ, HI, MN, ND, NV, OR, SD, UT, VT. Rural areas get a -20% advance adjustment and require 3+ years of experience.
10. Risk and Approval Process
Underwriting: We assess ARV, rehab scope, your experience, and market conditions (e.g., Des Moines comps or more rural Iowa markets).
Valuation: Appraisal or in-house valuation depending on your project.
Approval Timeline: Draws take 0-2 days, and initial funding is based on how quickly you submit your documents. We ensure a quick and efficient process.
Default Rate: Less than 0.5% of our loans have ever defaulted. Your success is our priority.
11. Support and Flexibility
Guidance: As your deal advisor and risk manager, we offer rehab calculators and scope advice tailored to Iowa projects.
Rehab Oversight: Self-serve draw inspections keep you in control and make it easier to manage your project.
Advanced Draws: At our discretion, we ensure you're funded as needed throughout the rehab process.
12. Transparency and Fine Print
Sample Costs: For a $150,000 Iowa property, expect the following:
Origination Fee (2 points): $2,000
Draw Fee: $270 per draw
Wire Fee: $30 per wire transfer
Rehab Costs: Up to 100% of the rehab budget available.
Hidden Costs: Draw fees, wire fees, and extension fees are all disclosed upfront.
Rural/Complex Terms: Rural Iowa flips will have a -20% advance adjustment, and extensive rehabs may be capped at 70% LTARV or 85-90% Loan-to-Full-Cost (LTFC).
How You Can Profit from Iowa Real Estate
Letâs take a look at an example in Des Moines, Iowa, to illustrate how the OfferMarket Fix and Flip Loan Program works:
Purchase Price: $180,000
Rehab Budget: $50,000
After Repair Value (ARV): $270,000
With a loan-to-ARV of 75%, you could qualify for up to $202,500 in financing. Here's how the loan breaks down:
| Loan Structure | Amount |
|---|---|
| Loan Amount (75% of ARV) | $202,500 |
| Upfront Funding (90% of purchase price for experienced investors) | $162,000 |
| Down Payment | $18,000 |
| Rehab Funds | $50,000 |
Once the property is renovated and sold for $270,000, youâll pay back the loan and keep your profit after deducting rehab costs, fees, and other expenses. Depending on the final sale price, you could see a significant return on your investment.
Why Choose OfferMarket for Your Fix and Flip Loan in Iowa?
At OfferMarket, weâre committed to providing the best financing options for real estate investors in Iowa. Hereâs why you should choose us for your next fix and flip project:
Competitive Loan Terms: We offer up to 90% funding on your fix-and-flip projects, ensuring you have the necessary capital to purchase and rehab your properties.
Flexible Repayment Structure: Our interest-only payments and no prepayment penalties give you flexibility, allowing you to focus on your project without worrying about cash flow.
Fast and Efficient Processing: With a quick approval process and draw requests processed in 0-2 days, we ensure that you get the funds when you need them most, so your project stays on track.
Personalized Support: Our team of experienced professionals is here to guide you every step of the way, from financing to rehab advice. We provide tailored guidance to ensure the success of your project in Iowa.
No Hidden Fees: Transparency is key to building a strong relationship with our clients. We make sure you know exactly what to expect, with all fees upfrontâno surprises.
Proven Track Record: With a default rate of less than 0.5%, our experience speaks for itself. We are committed to helping you succeed with your fix-and-flip projects.
Dual Exit Strategies: Whether youâre flipping or renting, we offer flexibility with our dual-exit options, allowing you to adapt to market conditions in Iowa.
Experience with Various Project Types: From single-family homes to multi-unit properties, our financing is suitable for a wide range of real estate projects across Iowa.
Choose OfferMarket for your next fix-and-flip loan in Iowa, and let us help you maximize your investment and achieve your real estate goals with confidence!
Iowa Fix and Flip Loan: Documentation Requirements
To ensure a seamless and efficient loan approval process, we require specific documentation. This allows us to properly evaluate your project and confirm alignment with our loan criteria. Below are the required documents for both purchase and refinance transactions in Iowa.
Purchase Transaction Requirements
For all purchase transactions in Iowa, the following documents must be submitted:
| Loan File Section | Document |
|---|---|
| Purchase Contract | Fully executed by both buyer and seller. |
| Credit Report | Soft tri-merge credit report for every guarantor associated with the borrowing entity. |
| Background Report | Required for each member of the borrowing entity. |
| Track Record | Required for each member of the borrowing entity. |
| ID Verification | A government-issued ID such as a driverâs license, passport, or Green Card. |
| Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9. |
| Scope of Work | A detailed rehab budget to determine the After Repair Value (ARV). |
| Appraisal Report | A payment link for the appraisal invoice will be provided. The completed appraisal will be uploaded to your loan file. |
| Bank Statements | Two (2) most recent statements for each guarantor. These can be from personal accounts (bank, brokerage, or retirement) and do not need to be in the name of the entity. |
| Letter of Explanation | If requested by underwritingâfor instance, to explain large deposits, late payments, or items in the background check. |
Refinance Transaction Requirements
For refinance transactions, the required documentation is largely the same, with a few refinements:
| Loan File Section | Document |
|---|---|
| Settlement Statement | Fully executed by both buyer and settlement agent. |
| Credit Report | Soft tri-merge credit report for every guarantor associated with the borrowing entity. |
| Background Report | Required for each member of the borrowing entity. |
| Track Record | Required for each member of the borrowing entity. |
| ID Verification | A government-issued ID such as a driverâs license, passport, or Green Card. |
| Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9. |
| Sunk Costs | A breakdown of line items and costs already incurred. |
| Scope of Work | A detailed rehab budget to determine ARV and support the rehab plan. |
| Appraisal Report | A payment link for the appraisal invoice will be provided. The completed appraisal will be uploaded to your loan file. |
| Bank Statements | Two (2) most recent statements for each guarantor. These can be from personal accounts (bank, brokerage, or retirement) and do not need to be in the name of the entity. |
| Letter of Explanation | If requested by underwritingâfor instance, to explain large deposits, late payments, or items in the background check. |
Special Requirements for Loans Over $1M
Loans above $1,000,000 (up to a $2,000,000 maximum) require additional due diligence to ensure borrower qualification and project feasibility.
| Criteria | Explanation |
|---|---|
| Experience | At least 3 completed projects of similar or higher value is strongly preferred. |
| Market Liquidity | Minimum of 3 comparable properties sold on the MLS within a 2-mile radius over the last 6 months. |
| Credit Score | Minimum 680, plus at least 5 active trade lines with a 24-month payment history. |
| Rural Designation | Properties designated as rural by the CFPB, USDA, or in the appraisal report are not eligible. |
| Track Record | Required for each member of the borrowing entity. |
Glossary of Key Terms
A quick reference for common terms used in our loan agreements:
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit. A secondary housing unit located on the same property as the primary home. |
| Arms-Length | A fair market transaction between unrelated and independent parties. |
| Non-Arms-Length | A transaction involving parties with a personal or business relationship, which may affect pricing. |
| Initial Advance | The portion of the total loan amount allocated toward the property purchase. |
| Construction Holdback | The portion of the loan reserved for funding the rehab costs. |
| LTARV | Loan-to-After-Repair Value. The ratio of loan amount to the estimated value after rehab. |
| LTC | Loan-to-Cost. The ratio of loan amount to the combined purchase price and rehab costs. |
| LTFC | Loan-to-Full-Cost. The ratio of total loan amount to the full cost, including both purchase and rehab expenses. |
Get an Instant Fix and Flip Loan Quote in Iowa
OfferMarket is your trusted lending partner for real estate investments in Iowa. Our Fix and Flip loan program is designed to give you the financial flexibility and competitive terms you need for success. Get started now by requesting an instant quote for your next fix and flip deal.
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