Illinois Fix and Flip Loan
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Last Updated: April 11, 2025
Welcome to OfferMarketâs Fix and Flip Loan Program, designed for real estate investors in Illinois! Whether you're flipping homes in Chicago, working on a project in Naperville, or exploring opportunities in rural parts of the state, our program offers the capital and flexibility you need to succeed. Letâs take a deeper dive into how our loan program works, the key terms, and what you can expect when you apply.
Why a Fix and Flip Loan in Illinois is a Smart Investment
Illinois offers a dynamic real estate market with endless opportunities, from the bustling city of Chicago to suburban hotspots and rural properties across the state. Whether youâre targeting properties in urban areas like Oak Park and Schaumburg or looking for opportunities in the rural regions of Illinois, you can benefit from our Fix and Flip Loan.
Illinoisâ growing job market, the steady rise in housing demand, and the potential for property appreciation make it an ideal location for real estate investments. By leveraging OfferMarketâs Fix and Flip Loan, you can access the necessary funding to purchase, renovate, and sell properties for a profit.
What You Get with OfferMarketâs Fix and Flip Loan in Illinois
At OfferMarket, we provide a loan structure designed to meet the needs of both first-time and experienced investors. Here's what you can expect when you choose our Fix and Flip Loan program:
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 tied to the purchase price, rehab budget, and After Repair Value (ARV), ensuring you get the capital you need for your project.
2. After Repair Value (ARV) Requirements
Minimum ARV: $100,000 â This ensures the project remains profitable.
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 75% for moderate jobs.
Valuation: We use appraisal reports (e.g., 1004 + 1007 for single-family homes) or in-house valuations to determine ARV accurately and quickly.
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 are 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. Fast processing with 0-2 day turnaround.
Down Payment: Minimum of $10,000 for properties under $100K.
Draws: No minimum or maximum for draws. 50% of materials cost is funded once delivered but not installed.
4. Interest Rates and Fees
Interest Rate: Flexible, based on market fluctuations. Contact us for the most up-to-date rate for your deal.
Origination Fee: 1.5 to 2 points (with a $2,000 minimum). For example, 2 points on a $100,000 loan means a $2,000 fee upfront.
Other Fees: Draw fees of $270 per draw, wire fees of $30, and appraisal costs, which will be covered by you.
Interest Accrual: For loans under $100K, interest is charged on the full amount. For loans over $100K, interest accrues 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 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 maturityâkeeping cash flow flexible while you focus on your project.
Prepayment Penalty: None. You can pay off your loan early without additional penalties.
Recourse: Full recourse, with 51% of your LLC or Corporation guaranteeing the loan for purchases (100% for refinances).
7. Exit Strategy Requirements
Sale: A minimum 30% ROI and $15,000 profit is required upon the sale of the property.
Refinance: Aim for a 1.1 DSCR post-repair to qualify for refinancing.
Flexibility: You can switch between flipping or renting, depending on the market conditions in Illinois, providing you with dual-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 Illinois 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 Illinois, 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., Chicago comps or more rural Illinois 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 Illinois 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 Illinois 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 Illinois 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 Illinois Real Estate
Letâs look at an example in Chicago, Illinois, to illustrate how the program works:
Purchase Price: $180,000
Rehab Budget: $50,000
After Repair Value (ARV): $270,000
Loan Breakdown:
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 available as part of the loan.
Profit Breakdown: 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 substantial return on your investment.
Why Choose OfferMarket for Your Fix and Flip Loan in Illinois?
At OfferMarket, we are dedicated to helping real estate investors thrive in Illinois. Hereâs why weâre the best choice for your fix and flip financing needs:
Competitive Loan Terms: We offer flexible and favorable loan terms with up to 90% funding to ensure you have the capital to complete your project.
Experienced Advisors: Our team of experienced professionals is here to guide you through every step of the process. From loan application to rehab planning, we offer personalized support tailored to your needs.
Fast Processing: Get your funds quickly with our efficient processing system. We ensure rapid turnaround on draws and approvals so your project stays on track.
No Prepayment Penalties: We believe in flexibility. With OfferMarket, you can pay off your loan early without facing any additional charges or penalties.
Transparency and Flexibility: No hidden fees! With us, youâll know exactly what to expect throughout the loan process.
Illinois Fix and Flip Loan: Documentation Requirements
To ensure a smooth and efficient loan approval process, we require specific documentation to assess the details of your project and ensure compliance with our loan terms. Below are the key documents necessary for both purchase and refinance transactions in Illinois.
Purchase Transaction Requirements
For all purchase transactions in Illinois, the following documents must be provided:
| Loan File Section | Document |
|---|---|
| Purchase Contract | Fully executed by both the buyer and the seller. |
| Credit Report | Soft tri-merge credit report for each borrowing entity member 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 | A government-issued ID (e.g., driverâs license, passport, Green Card). |
| Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9. |
| Scope of Work | A detailed rehab budget to determine ARV. |
| Appraisal Report | You will receive a link to pay the appraisal invoice, and the appraisal will be uploaded to your loan file. |
| Bank Statements | Two (2) most recent statements for each guarantor. Personal accounts (bank, brokerage, retirement) are acceptable and need not be in the borrowing entityâs name. |
| Letter of Explanation | If requested by underwriting, such as for large deposits, late payments, or background items. |
Refinance Transaction Requirements
For refinance transactions, similar documentation is required:
| Loan File Section | Document |
|---|---|
| Settlement Statement | Fully executed by the buyer and settlement agent. |
| Credit Report | Soft tri-merge credit report for each borrowing entity member 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 | A government-issued ID (e.g., driverâs license, passport, Green Card). |
| Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9. |
| Sunk Costs | Breakdown of costs already incurred for the property. |
| Scope of Work | Your detailed rehab budget to help determine ARV and guide your property rehab. |
| Appraisal Report | You will receive a link to pay your appraisal invoice, and the appraisal will be uploaded to your loan file. |
| Bank Statements | Two (2) most recent statements for each guarantor. Personal accounts (bank, brokerage, retirement) are acceptable and do not need to be in the borrowing entityâs name. |
| Letter of Explanation | If requested by underwriting, such as for large deposits, late payments, or background items. |
Special Requirements for Loans Over $1M
Loans greater than $1M (up to the $2M maximum) come with additional requirements to ensure the projectâs viability and the borrowerâs financial stability:
| Criteria | Explanation |
|---|---|
| Experience | A minimum of 3 similar or greater price point projects is strongly preferred. |
| Market Liquidity | A minimum of 3 comps within a 2-mile radius sold on the MLS in the last 6 months. |
| Credit Score | A minimum score of 680, with at least 5 trade lines and a 24-month history. |
| Rural Designation | Not eligible if the property is designated as rural by the CFPB and USDA or indicated in the appraisal report. |
| Track Record | Required for each member of the borrowing entity. |
Glossary of Key Terms
Hereâs a quick reference for some key terms used in our loan agreements:
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit â A secondary housing unit on the same parcel as the main home. |
| Arms-Length | A transaction between independent parties to ensure fair market value. |
| Non-Arms-Length | A transaction where personal or business connections affect fairness or pricing. |
| Initial Advance | The portion of the total loan amount applied toward the property purchase. |
| Construction Holdback | The portion of the loan used to cover rehab costs. |
| LTARV | Loan-to-After-Repair Value â The ratio of the loan amount to the propertyâs estimated value after rehab. |
| LTC | Loan-to-Cost â The ratio of the loan amount to the combined purchase and rehab costs. |
| LTFC | Loan-to-Full-Cost â The ratio of the total loan amount to total cost, including both purchase price and rehab costs. |
Get an Instant Fix and Flip Loan Quote in Illinois
At OfferMarket, we are dedicated to assisting real estate investors in Illinois. Our Fix and Flip loan program offers the financial flexibility and competitive rates you need to make your real estate projects a success. Get started today by requesting an instant quote for your next fix-and-flip investment and take the first step toward achieving profitable real estate deals in Illinois.
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