Delaware Fix and Flip Loan

Last Updated: April 9, 2025

Are you ready to make the most out of Delaware's thriving real estate market? Whether you're looking to flip a charming rowhome in Wilmington or a single-family property in Dover, OfferMarket's Fix and Flip Loan Program is designed to help you capitalize on Delaware's growing demand for renovated homes. From new investors to seasoned professionals, we provide fast, reliable, and low-cost financing to purchase and renovate residential properties in Delaware.

Our mission is to help you build wealth through real estate by providing you with the right capital, the right support, and the flexibility to succeed. Let’s dive into how you can leverage our program to get your next Delaware real estate project off the ground!

What is a Fix and Flip Loan?

A Fix and Flip Loan—sometimes called a "hard money loan" or "bridge loan"—is designed to help you purchase and renovate a property quickly with the goal of selling it for a profit or refinancing it into a long-term rental. With OfferMarket, your loan is split into two components:

• Initial Advance: Up to 90% of the purchase price to get the property into your hands.
• Construction Holdback: Up to 100% of rehab costs, disbursed via draw reimbursement as you make progress on the renovations.

With dual exit strategies—flip the property for a profit or refinance into a rental loan—this loan option provides the flexibility to adjust based on changing market conditions, whether you're renovating a rowhome in Wilmington or a vacation home in Rehoboth Beach.

Why Delaware Is Perfect for Fix and Flip Projects

Delaware offers a dynamic real estate market with endless opportunities for fix-and-flip investors. With major cities like Wilmington, Newark, and Dover growing steadily, Delaware provides a mix of urban, suburban, and rural areas to target for renovations. Whether you’re eyeing properties close to the coast, in downtown Wilmington, or within the expanding suburbs, Delaware has something for every investor.

Key highlights of the Delaware market:

• Growing Job Market: With major industries like finance, healthcare, and tech, Delaware offers an appealing backdrop for real estate investments.
• Strong Rental Demand: As a tax-friendly state, Delaware has consistent rental demand, especially in areas like Wilmington and Rehoboth Beach.
• Consistent Population Growth: With a steady influx of people moving to the state, the demand for updated homes remains high, making it a perfect environment for fix and flip projects.

OfferMarket’s Fix and Flip Loan is a great fit for this market, offering fast funding, flexible terms, and support for urban and rural properties across Delaware. Whether you are just starting out or scaling up your business, Delaware’s robust real estate scene is ripe for investment.

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

Let’s dive into the details of the Fix and Flip Loan Program, so you can see exactly what you’ll get when you partner with OfferMarket for your next Delaware project. From financing options to fees and terms, we’ve got everything you need to succeed.

1. Loan Amount Details

• Minimum Loan Amount: $25,000
  Ideal for smaller flips, whether it’s a condo in Dover or a townhouse in Wilmington.
• Maximum Loan Amount: $2,000,000
  Loans over $1M require a minimum of 3+ years of experience and strong comparable sales (comps).
• How It’s Determined:
  Your loan size is based on your purchase price, rehab budget, and After Repair Value (ARV), ensuring you have the capital to complete your project.

2. After Repair Value (ARV) Requirements

• Minimum ARV: $100,000
  Ensures your project is profitable and aligns with Delaware’s market demands.
• Maximum Loan-to-ARV (LTARV): Up to 75%, with adjustments based on your experience and rehab scope.
  • 70% for extensive rehabs if you're a beginner or taking on complex projects.
• ARV Calculation:
  We use appraisal reports (e.g., 1004 + 1007 for single-family homes) or in-house valuations to provide quick, accurate estimates of your property's value after renovations.

3. Funding Breakdown

• Initial Advance: Up to 90% of the purchase price, adjusted by your experience tier and credit score. For instance, 80% for Tier 1 (beginner), 90% for Tier 5 (10+ projects).
• Construction Holdback: Up to 100% of rehab costs, disbursed through self-serve draw requests with 0-2 business day turnaround.
• Down Payment: Minimum $10,000 for properties under $100K—your skin in the game ensures both commitment and success.
• Draw Schedule:
  • No minimum or maximum number of draws.
  • 50% of funds for materials delivered but not installed.

4. Interest Rate and Fees

• Interest Rate: Flexible, based on market fluctuations. We offer customized rates for each deal.
• Origination Fee: 1.5% to 2 points ($2,000 minimum).
  For a $100,000 loan, the fee would be $2,000.
• Other Fees:
  • Draw Fee: $270
  • Wire Fee: $30
  • Appraisal Costs: Paid by the borrower.
• Interest Accrual:
  • Loans under $100,000 accrue interest on the full loan amount (known as Full Boat).
  • Loans of $100,000 or more accrue interest only on funds disbursed (known as As Disbursed).

5. Loan Term

• Duration:
  Standard term of 12 months, with 18-24 months available for specific projects that require additional time.
• Extensions:
  If needed, you can extend your loan for up to 50% of the original term (e.g., 6 months for a 12-month loan).
• Extension Fees:
  • 1% for the first 3-month extension.
  • 2.5% for the first 6-month extension.

6. Repayment Structure

• Payment Type: Interest-only payments with a balloon payment at maturity—this gives you flexibility during the renovation process.
• Prepayment Penalty: None. You can pay off your loan early without any extra charges.
• Recourse: Full recourse, with 51% of the borrowing entity required to guarantee the loan for purchases, and 100% for cash-out refinances.

7. Exit Strategy Requirements

• Sale:
  • Minimum 30% ROI
  • Minimum $15,000 profit.
• Refinance:
  • Aim for a 1.1 DSCR (Debt Service Coverage Ratio) after repairs.
• Flexibility:
  Whether you choose to flip or refinance based on market conditions, our dual exit strategy gives you the flexibility to navigate Delaware’s dynamic real estate market.

8. Eligibility Criteria

• Experience: Not required.
  Investors start at Tier 1 (80% advance) and can progress to Tier 5 (90%) as they gain more experience.
• Credit Score: Minimum 680, but exceptions are available for scores between 660-679 with adjustments.
• Borrowing Entity: Must be an LLC or Corporation.
• Cash Reserves: You’ll need enough to cover cash to close + 25% of your rehab budget in liquid assets (bank accounts, brokerage, or retirement accounts).

9. Project and Property Requirements

• Eligible Property Types:
  1-4 unit residential: single-family, duplex, triplex, quadplex, condos, townhomes, and PUDs.
• Minimum Square Footage:
  • Single-family: ≥ 700 sq ft
  • 2-4 units: ≥ 500 sq ft per unit
  • Condo: ≥ 500 sq ft
• Maximum Acreage: 5 acres—perfect for rural Delaware properties.
• Rehab Scope:
  • Light (under 25% of purchase price)
  • Moderate (25%-49.99%)
  • Heavy (50%-99.99%)
  • Extensive (100%+ of purchase price, including additions or expansions)
• Location:
  Available in Delaware, with restrictions for rural areas (-20% advance adjustment, 3+ years of experience required).

10. Risk and Approval Process

• Underwriting:
  We analyze ARV, rehab scope, experience, credit, and market conditions to assess risk and determine the best financing terms.
• Valuation Method:
  We require either an appraisal report or an in-house valuation depending on the project and the borrower’s experience level.
• Approval Timeline:
  • Draws: 0-2 business days for approval.
  • Initial Funding: Fast—based on how quickly documents are submitted.
• Default Rate:
  Less than 0.5% of all loans originated have ever defaulted.

11. Support and Flexibility

• Guidance:
  As your deal advisor, we help you manage risk and provide access to useful tools, like rehab calculators and scope of work advice.
• Rehab Oversight:
  Self-serve draw inspections give you full control over the progress of your project.
• Advanced Draws:
  Discretionary, ensuring that you get the funding you need when it’s needed most.

12. Transparency and Fine Print

• Sample Costs:
  For a $150,000 Delaware property, we provide clear breakdowns, so you know exactly where your money is going.
• Hidden Costs:
  Draw fees ($270), wire fees ($30), and extension fees are fully disclosed upfront—no surprises.
• Rural and Complex Terms:
  For rural properties, -20% advance adjustments apply, and extensive rehabs may be subject to LTFC limits (85-90%).

Required Documentation for Fix and Flip Loans

Our Loan File system is designed for seamless processing, ensuring fast approval and funding. All submitted documents are securely stored in your OfferMarket account for future transactions, streamlining future loan applications.

Purchase Transaction Requirements

Loan File Sections: Purchase

Refinance Transaction Requirements

Loan File Sections: Refinance

Special Requirements for Loans Over $1M

Loans greater than $1M (up to the $2M maximum) are subject to adjusted guidelines. These loans come with higher stakes, so we require additional documentation and qualifications:

Why This Documentation Matters

This documentation ensures that we can provide the most accurate and efficient loan processing for your project. By having everything ready, you’ll experience quicker approval and smoother funding, allowing you to focus on what matters most: your fix and flip project.

By submitting all necessary documents early, your future loan applications will be expedited, as OfferMarket keeps your information securely stored for future use.

Why Choose OfferMarket for Fix and Flip Loans

At OfferMarket, we’re more than just a lender—we’re your partner in building wealth through real estate. With a default rate of less than 0.5% across our lending portfolio, we pride ourselves on having one of the lowest default rates in the private lending industry. Our mission is to empower fix and flip investors with tailored financing, expert risk management, and clear guidance, no matter your experience level. Whether you’re a first-time flipper or a seasoned pro, we provide flexible loan options, competitive rates, and a structured approach to ensure your success. Choose OfferMarket for a reliable, transparent, and strategic lending experience that helps you grow your real estate business with confidence.

Key Features of Our Fix and Flip Loans

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

• Loan Amounts: $25,000 to $2,000,000 to fit projects of any size.
• High Leverage: Up to 90% of purchase price and 100% of rehab costs, with a maximum 75% LTARV.
• No Experience Required: Accessible to new investors, with increased benefits for seasoned flippers.
• Fast Funding: Initial advances up to 90% and quick draw processing (0-2 business days) for construction holdbacks.
• Flexible Terms: 12 to 24 months, interest-only with no prepayment penalties.
• Tailored Risk Management: Rehab scope eligibility and experience tiers ensure manageable projects.
• Nationwide Reach: Available in most U.S. states, with expert support for your market.
• Transparent Costs: Competitive rates (get an instant quote), 1.5-2 points, and no hidden fees.

With OfferMarket, you get a loan that works as hard as you do—streamlined, supportive, and built for success.

Ready to Flip in Delaware? Get Your Loan Now!

You’ve got the details—loan amounts, ARV limits, funding breakdowns, fees, terms, and more. Whether you’re a beginner taking on your first project or a pro flipping properties in Wilmington, OfferMarket’s Fix and Flip Loan Program has you covered. With a <0.5% default rate and a risk-focused approach, we prioritize your success.

Delaware’s real estate market is full of opportunity. Don’t wait—start your application today, and let’s turn your next project into a profitable venture. Request your loan now!

Get an Instant Fix and Flip Loan Quote in Delaware

OfferMarket is your trusted partner for real estate investing in Delaware. Our Fix and Flip loan program is designed to provide you with the financial flexibility and competitive rates you need to succeed in your real estate projects. Get started today by requesting an instant quote for your next fix and flip investment.

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