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Indiana Fix and Flip Loan

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Last Updated: April 11, 2025

Welcome to OfferMarket’s Fix and Flip Loan Program, tailored for real estate investors in Indiana! Whether you're flipping homes in Indianapolis, working on a project in Fort Wayne, or exploring opportunities in rural parts of the state, our program gives you the capital and flexibility you need to succeed. Let’s break down how our loan program works and show you how you can make the most of Indiana’s thriving real estate market.

Why a Fix and Flip Loan in Indiana Is a Smart Investment

Indiana is an ideal state for real estate investing, with its steady economic growth, thriving housing market, and affordable property prices. Whether you're flipping properties in urban areas like Indianapolis or smaller towns such as Bloomington or Lafayette, Indiana presents a wealth of opportunities for homebuyers and investors alike.

Indiana’s housing market has shown significant appreciation in recent years, driven by job growth, new infrastructure, and low property taxes. The cost of living in the state is relatively low compared to other regions, making it an attractive destination for both homebuyers and renters. This combination of factors creates a solid foundation for profitable fix-and-flip projects.

With OfferMarket’s Fix and Flip Loan, you can access the capital necessary to purchase, renovate, and sell homes in Indiana. Whether you're working on a single-family home or a multi-unit property, our flexible terms and funding options ensure you’ll have what you need to turn your real estate goals into reality.

What You Get with OfferMarket’s Fix and Flip Loan in Indiana

At OfferMarket, we provide a loan structure designed to meet the needs of both first-time and experienced investors. Here's a breakdown of the features of our program:

1. Loan Amount Details

Minimum Loan Amount: $25,000 – Perfect for smaller, quick flips.
Maximum Loan Amount: $2,000,000 – For larger projects, though loans over $1M require 3+ years of experience and strong comparable sales (comps).
How It Works: The loan size is determined by the purchase price, rehab budget, and After Repair Value (ARV), ensuring that you have the necessary funds for your project.

2. After Repair Value (ARV) Requirements

Minimum ARV: $100,000 – This ensures the project remains profitable.
Maximum Loan-to-ARV (LTARV): Up to 75% – Adjusted by experience. Beginners may qualify for 70% for lighter rehabs, while experienced investors can get 75% for more moderate jobs.
Valuation: We use appraisal reports (e.g., 1004 + 1007 for single-family homes) or in-house valuations for quick and accurate ARV estimates.

3. Funding Breakdown
Initial Advance: Up to 90% of the purchase price, based on your experience. Beginners typically receive 80%, while experienced investors get 90%. Adjustments may be made for credit scores under 720 or if you have licensed contractors (+10%).
Construction Holdback: Up to 100% of rehab costs, disbursed through self-serve, app-based draw requests with a 0-2 day turnaround.
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 market conditions. For the most up-to-date 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: For loans under $100K, interest is accrued on the full loan amount. For loans over $100K, interest is accrued 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, which helps maintain cash flow during the project.
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: A minimum of 30% return on investment (ROI) and $15,000 profit upon sale of the property.
Refinance: A minimum debt service coverage ratio (DSCR) of 1.1 post-repair 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 residential—single-family (≥700 sq ft), duplex/triplex/quadplex (≥500 sq ft per unit), condos (≥500 sq ft), townhomes, and PUDs.
Maximum Acreage: Up to 5 acres—perfect 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).

Why Choose OfferMarket for Your Fix and Flip Loan in Indiana?

At OfferMarket, we offer everything you need to succeed in Indiana’s real estate market:

Competitive Terms: Up to 90% funding to cover your project costs.
Flexible Repayment: Interest-only payments with no prepayment penalties.
Quick Processing: Fast draw requests, with approval in as little as 0-2 days.
Expert Support: Personalized advice from our experienced team to guide you through every step.
Clear Fees: No hidden costs—everything is transparent from the start.
Dual Exit Strategy: Flexibility to flip or rent based on Indiana’s market conditions.
Proven Success: A default rate of less than 0.5% demonstrates our commitment to your success.

Start your fix-and-flip journey with OfferMarket today and make the most of your Indiana real estate investment!

How You Can Profit from Indiana Real Estate

Let’s look at an example in Indiana, 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, you’ll 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.

Indiana Fix and Flip Loan: Documentation Requirements

To ensure a smooth and timely approval process, we need specific documentation to assess your project and confirm it meets the loan criteria. Below are the key documents required for both purchase and refinance transactions in Indiana.

Purchase Transaction Requirements

For all purchase transactions in Indiana, you will need to provide the following documentation:

Loan File Section	Document
Purchase Contract	Fully executed by both buyer and seller.
Credit Report	Soft tri-merge credit report for every individual who will act as a guarantor for the borrowing entity.
Background Report	Required for each individual in the borrowing entity.
Track Record	Required for each individual in the borrowing entity.
ID Verification	A government-issued ID (such as a driver's license, passport, or Green Card).
Borrowing Entity	Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9 form.
Scope of Work	A detailed rehab budget to help determine the After Repair Value (ARV).
Appraisal Report	A link will be provided to pay for the appraisal invoice. The appraisal will be uploaded to your loan file.
Bank Statements	Two most recent statements for each guarantor. These can be personal accounts (e.g., bank, brokerage, retirement) and don't need to be in the borrowing entity’s name.
Letter of Explanation	If required by underwriting, for issues like large deposits, late payments, or background discrepancies.

Refinance Transaction Requirements

For refinance transactions, the required documentation is similar to purchase transactions:

Loan File Section	Document
Settlement Statement	Fully executed by both the buyer and settlement agent.
Credit Report	Soft tri-merge credit report for each member of the borrowing entity who will act 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 (such as a driver's license, passport, or Green Card).
Borrowing Entity	Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9 form.
Sunk Costs	A detailed breakdown of any costs already incurred on the project.
Scope of Work	Your detailed rehab budget, which will be used to establish ARV and guide the renovation of the property.
Appraisal Report	You will receive a link to pay for the appraisal invoice, and the appraisal will be uploaded to your loan file.
Bank Statements	Two most recent statements for each guarantor. Accounts can be personal (bank, brokerage, retirement), and these don’t have to be in the name of the borrowing entity.
Letter of Explanation	If requested by underwriting, for issues such as large deposits, late payments, or background concerns.

Special Requirements for Loans Over $1M

Loans greater than $1M (up to a maximum of $2M) come with additional criteria to ensure project feasibility and verify the borrower’s experience and financial stability:

Criteria	Explanation
Experience	Minimum of 3 similar projects or higher price point preferred.
Market Liquidity	At least 3 comparable sales within a 2-mile radius, sold via MLS in the last 6 months.
Credit Score	Minimum 680 with at least 5 trade lines and 24 months of history.
Rural Designation	Not eligible if the property is designated as rural by the CFPB or USDA, or as stated in the appraisal report.
Track Record	Required for each member of the borrowing entity.

Glossary of Key Terms

Here’s a quick reference for some of the terms used in our loan agreements:

Term	Definition
ADU	Accessory Dwelling Unit: A secondary living unit located on the same parcel as the main property.
Arms-Length	A transaction between independent parties, ensuring fair market value.
Non-Arms-Length	A transaction where personal or business relationships affect fairness or pricing.
Initial Advance	The portion of the total loan amount allocated for the property purchase.
Construction Holdback	The portion of the loan allocated to cover rehab costs.
LTARV	Loan-to-After-Repair Value: The ratio of the loan amount to the property’s estimated value after rehab.
LTC	Loan-to-Cost: The ratio of the loan amount to the combined purchase and rehab costs.
LTFC	Loan-to-Full-Cost: The ratio of the loan amount to the total cost, which includes both purchase price and rehab expenses.

Get an Instant Fix and Flip Loan Quote in Indiana

OfferMarket is your trusted partner for real estate investments in Indiana. Our Fix and Flip loan program offers 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.