Kentucky Fix and Flip Loan
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Last Updated: April 11, 2025
Welcome to OfferMarket’s Fix and Flip Loan Program, specially designed for real estate investors in Kentucky. Whether you’re flipping homes in Lexington, working on a project in Louisville, or exploring rural opportunities, we have the financing to help you succeed. Our program is tailored to meet your specific needs, ensuring you get the funds you need to make your next fix-and-flip project in Kentucky a success.
Why a Fix and Flip Loan in Kentucky is a Smart Investment
Kentucky’s real estate market offers exciting opportunities for investors. From the growing urban areas of Louisville and Lexington to the more affordable, picturesque rural properties, Kentucky presents a unique blend of high potential returns and affordable entry points.
The state’s economy is bolstered by key industries such as agriculture, automotive, and manufacturing, making it a thriving place for real estate investments. In recent years, cities like Louisville have seen increased demand for homes due to population growth and strong economic development. Furthermore, Kentucky’s relatively low property prices combined with a steady appreciation rate offer substantial opportunities for profitable fix-and-flip projects.
Whether you’re targeting a single-family home or a multi-unit property, OfferMarket’s Fix and Flip Loan program is here to provide you with the capital and flexibility needed to capitalize on Kentucky’s real estate potential.
What You Get with OfferMarket’s Fix and Flip Loan in Kentucky
At OfferMarket, we provide you with the financing you need to successfully flip properties in Kentucky. Our loan program is built to meet your needs, from small-scale flips to large projects. Here’s a breakdown of the key details:
1. Loan Amount Details
Minimum Loan Amount: $25,000 – Ideal for smaller or quicker flips.
Maximum Loan Amount: $2,000,000 – For larger projects, loans over $1M require 3+ years of experience and strong comparable sales (comps).
How It Works: The loan size is based on the purchase price, rehab budget, and After Repair Value (ARV), ensuring you have enough capital to complete your project.
2. After Repair Value (ARV) Requirements
Minimum ARV: $100,000 – Ensures your project remains profitable.
Maximum Loan-to-ARV (LTARV): Up to 75% – Adjusted based on experience. Beginners may qualify for 70% on lighter rehabs, while experienced investors can qualify for 75% on moderate rehabs.
Valuation: We use appraisal reports (e.g., 1004 + 1007 for single-family homes) or in-house valuations for accurate ARV estimates in Kentucky’s market.
3. Funding Breakdown
Initial Advance: Up to 90% of the purchase price, based on your experience level (80% for beginners, 90% for 5+ projects) and credit score adjustments.
Construction Holdback: Up to 100% of rehab costs, disbursed via self-serve, app-based draw requests with a 0-2 day turnaround.
Down Payment: A minimum of $10,000 for properties under $100K.
Draws: No minimum or maximum for draws. We’ll fund 50% for materials delivered but not yet installed.
4. Interest Rates and Fees
Interest Rate: Flexible, based on market conditions. For the most up-to-date rates, contact us directly.
Origination Fee: 1.5 to 2 points ($2,000 minimum). For example, 2 points on a $100,000 loan equals $2,000 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 amount, while loans above $100K accrue interest only on the funds disbursed.
5. Loan Term
Duration: Standard term of 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 (1% for 3 months, 2.5% for 6 months).
6. Repayment Structure
Payments: Interest-only payments with a balloon payment due at maturity—this helps you manage cash flow during your rehab process.
Prepayment Penalty: None. You can pay off your loan early without worrying about 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 30% return on investment (ROI) and $15,000 profit on sale.
Refinance: A minimum debt service coverage ratio (DSCR) of 1.1 post-repair for refinancing.
Flexibility: You have the option to flip or rent based on Kentucky’s market conditions, giving you flexibility in your exit strategy.
8. Eligibility Criteria
Experience: Not required—beginners start at Tier 1 (80% advance), while experienced investors qualify for Tier 5 (90%).
Credit Score: Minimum 680 (with exceptions for scores between 660-679).
Borrowing Entity: Must be an LLC or Corporation.
Cash Reserves: You’ll need 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, PUDs.
Maximum Acreage: Up to 5 acres—great for rural Kentucky flips.
Rehab Scope: Light (under 25% of purchase price) to extensive (100%+ of purchase price). Beginners are limited to light/moderate rehabs.
Location: We lend in Kentucky, 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., Lexington comps or rural Kentucky liquidity).
Valuation: Appraisal or in-house, depending on your deal.
Approval Timeline: Draws take 0-2 days, and initial funding depends 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: We offer rehab calculators and scope advice tailored to Kentucky projects, ensuring you have the support you need to succeed.
Rehab Oversight: Self-serve draw inspections give you control over your rehab process.
Advanced Draws: At our discretion, we ensure you're funded as needed throughout the project.
12. Transparency and Fine Print
Sample Costs: For a $150,000 Kentucky 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 Kentucky 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 Kentucky Real Estate
Let’s take a look at an example in Lexington, Kentucky, to show how our 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, you’ll pay back the loan and keep your profit after deducting rehab costs, fees, and other expenses. Depending on the final sale price and your expenses, you could see a substantial return on your investment.
Why Choose OfferMarket for Your Fix and Flip Loan in Kentucky?
Competitive Loan Terms: We offer up to 90% funding, ensuring you have the capital to purchase and renovate properties, whether you’re doing a smaller flip or a larger project.
Flexible Repayment Options: With interest-only payments and no prepayment penalties, you can maintain your cash flow throughout your rehab process without added stress.
Quick and Efficient Processing: Our fast approval process and draw requests processed in 0-2 days make sure your project stays on schedule and you have the funds you need right when you need them.
Expert Support Every Step of the Way: From rehab advice to financing guidance, our team of experts is here to support your success in Kentucky’s real estate market.
Clear, Transparent Fees: We offer upfront, transparent fees with no hidden costs, so you can plan and budget with confidence.
Proven Success: With a default rate of less than 0.5%, our track record speaks for itself. We are committed to ensuring that your real estate projects are successful.
Flexibility in Exit Strategy: Whether you’re looking to flip or rent, our program offers the flexibility to adapt to Kentucky’s market conditions, giving you control over your investment approach.
Choose OfferMarket for your next fix-and-flip project in Kentucky, and let’s work together to turn your real estate goals into reality!
Kentucky Fix and Flip Loan: Documentation Requirements
To ensure a smooth and efficient loan approval process, we require specific documentation. These documents help us evaluate your project and confirm compliance with the loan terms. Below are the required documents for both purchase and refinance transactions in Kentucky.
Purchase Transaction Requirements
For all purchase transactions in Kentucky, the following documents are required:
| Loan File Section | Document |
|---|---|
| Purchase Contract | Fully executed by both buyer and seller. |
| Credit Report | Soft tri-merge credit report for each member of the borrowing entity who will be a guarantor. |
| Background Report | Required for each member of the borrowing entity. |
| Track Record | Required for each member of the borrowing entity. |
| ID Verification | Government-issued ID (e.g., driver’s 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 that will be used to determine ARV. |
| Appraisal Report | A link will be provided to pay the appraisal invoice. The completed report will be uploaded to your loan file. |
| Bank Statements | Two (2) most recent statements for each guarantor. These accounts can be personal (bank, brokerage, or retirement) and do not need to be in the borrowing entity’s name. |
| Letter of Explanation | If requested by underwriting (e.g., 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 guarantor in 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 | Government-issued ID (e.g., driver’s license, passport, Green Card). |
| Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, W-9. |
| Sunk Costs | A breakdown of line items and costs already incurred. |
| Scope of Work | Detailed rehab budget that will determine ARV and guide the rehab process. |
| Appraisal Report | A link will be provided to pay the appraisal fee. The report will be uploaded to your loan file. |
| Bank Statements | Two (2) most recent statements for each guarantor. Personal accounts are acceptable. |
| Letter of Explanation | If requested by underwriting (e.g., for unusual financial activity or background items). |
Special Requirements for Loans Over $1M
Loans over $1 million (up to the $2 million maximum) have additional requirements to ensure project viability and borrower qualifications:
| Criteria | Explanation |
|---|---|
| Experience | Minimum of 3 similar or higher price point projects strongly preferred. |
| Market Liquidity | At least 3 comparable sales (comps) within a 2-mile radius sold on the MLS in the last 6 months. |
| Credit Score | Minimum of 680, plus 5 trade lines with a 24-month history. |
| Rural Designation | Properties classified as rural by CFPB, USDA, or the appraisal report are not eligible. |
| Track Record | Required for each guarantor in the borrowing entity. |
Glossary of Key Terms
Here are quick definitions of key terms used in our loan agreements:
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit – a secondary unit on the same lot as the main home. |
| Arms-Length | A transaction between unrelated parties at fair market value. |
| Non-Arms-Length | A transaction involving parties with personal or business ties, possibly affecting pricing. |
| Initial Advance | Portion of the total loan amount used for the property purchase. |
| Construction Holdback | Portion of the total loan reserved for rehab costs. |
| LTARV | Loan-to-After-Repair Value – ratio of loan to the projected post-rehab value. |
| LTC | Loan-to-Cost – ratio of the loan to combined purchase and rehab costs. |
| LTFC | Loan-to-Full-Cost – ratio of the total loan to full project cost, including purchase and rehab. |
Get an Instant Fix and Flip Loan Quote in Kentucky
OfferMarket is your reliable lending partner for real estate investing in Kentucky. Our Fix and Flip loan program is designed to offer financial flexibility and competitive rates so you can succeed with your investment. Request your instant quote today and get started on your next fix and flip project.
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