Maine Fix and Flip Loan Program

Last Updated: April 11, 2025

If you're a real estate investor in Maine seeking a dependable funding partner, the OfferMarket Fix and Flip Loan program is here to assist with your next property investment. Whether you're flipping homes or adopting a hybrid strategy, our loan program is designed to meet your needs with flexible terms and competitive rates.

What is a Fix and Flip Loan in Maine?

A Fix and Flip loan is specifically tailored for real estate investors to purchase and renovate properties. These loans are often known as “hard money loans” or “bridge loans,” terms commonly used by private lenders and real estate investors in Maine and beyond.

How the Fix and Flip Loan Works in Maine

Our Fix and Flip loans in Maine consist of two key components:

1. Initial Advance – This portion of the total loan goes toward the property's purchase price and is directly wired to the title company during closing.

2. Construction Holdback – This portion covers the cost of renovations and is disbursed in stages as the work progresses, supporting the property’s transformation.

Your exit strategy after completing renovations is flexible. Whether you choose to sell the property for a profit or rent it out and refinance into a longer-term loan (such as a DSCR loan), you can adjust your approach based on market conditions. For example, you may initially plan to rent and refinance, but later realize that flipping the property provides better returns, depending on Maine’s current housing market trends.

Who Uses Fix and Flip Loans in Maine?

Our Fix and Flip loan program serves a variety of investors, including:

• Fix and Flip Investors (Flippers) who focus on swiftly renovating and selling properties.

• Rental Property Investors may also employ the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy.

Most real estate investors combine both strategies depending on the market conditions. Our program is designed to support this flexibility.

Maine Fix and Flip Loan Program Guidelines

If you're considering a Fix and Flip loan for your real estate project in Maine, it's essential to understand the complete set of guidelines to ensure you meet the eligibility criteria. Below are the key details for the OfferMarket Fix and Flip Loan in Maine:

Project Eligibility for Real Estate Investors in Maine

To help you grow your real estate business, we carefully evaluate each project to ensure it aligns with our risk management standards. While we focus on helping you build wealth, we also prioritize the security of your investment.

For example, our program is best suited for moderate rehab projects, as large-scale renovations often come with higher costs and delays, especially in Maine's rural and coastal areas.

• Experience Level: Although we do not require experience, we assess the complexity of the project based on factors such as rehab scope and local market dynamics.

• Rural Projects: In some remote areas of Maine, projects may require additional experience and could have a lower initial advance due to their rural designation.

• Rehab Scope: Projects with a minor rehab scope, like cosmetic updates, tend to be more straightforward and are typically eligible for higher initial advances.

Project Types Eligible for Maine Fix and Flip Loans

The types of properties eligible for funding through the Maine Fix and Flip Loan program include:

• Single-Family Residences

• Duplexes, Triplexes, and Quadplexes

• Condominiums and Townhomes

Whether you're flipping homes in cities like Portland or investing in properties further out in Maine’s more rural towns, we provide financing tailored to your project’s needs.

Maine Fix and Flip Loan Program: Experience-Based Tiers & Advanced Draws

We offer flexible financing solutions that align with your experience level as a real estate investor in Maine. To help determine loan conditions, we’ve established experience-based tiers, offering you the best possible terms.

Experience-Based Tiers for Fix and Flip Loans in Maine

*Note: 85% available on an exceptional basis for borrowers with excellent credit and liquidity.

In Maine, borrowers will be categorized into one of these tiers based on their real estate investment experience. The higher your experience, the better the terms you'll receive.

Adjustments to Initial Advance in Maine

Several factors can influence the amount of the initial advance provided. Here are some examples:

For projects in Maine, particularly those located in more remote or rural areas, additional experience may be required, and the initial advance could be adjusted accordingly.

Rehab Scope Classification in Maine

The rehab scope classification determines the complexity of the project. Here’s how we define various levels of rehab scopes in Maine:

For projects in Maine, particularly in rural regions, we recommend focusing on lighter rehab scopes to avoid complications and cost overruns.

Maximum Loan-to-After-Repair Value (LTARV) in Maine

The maximum LTARV is determined by your experience tier and the rehab scope of your project. Here's the breakdown of LTARV limits in Maine:

Loan-to-Full-Cost (LTFC) Limits in Maine

For projects requiring extensive rehabs, the LTFC ensures that you have enough equity to handle the risks of complex renovations. Here's a look at the LTFC limits based on your experience and rehab scope:

Maine Fix and Flip Loan Examples

When it comes to considering a Fix and Flip loan in Maine, understanding the numbers behind your project is key to making informed decisions. Here are some examples to help you visualize how the loan terms work based on different scenarios and experience levels, allowing you to better plan for your potential loan structure.

Example 1: No Experience, Standard Terms

• Purchase Price: $120,000

• Tier: 1 (0 similar verifiable experience)

• Credit Score: 695

• Rehab Budget: $30,000

• ARV (After Repair Value): $175,000

• Initial Advance: $90,000 (75%)

• Construction Holdback: $30,000

• Total Loan Amount: $120,000

• LTARV (Loan-to-After-Repair Value): 68.57%

• LTFC (Loan-to-Full-Cost): 80%

• Interest Accrual: Full boat

In this example, as a first-time borrower with a 695 credit score, the loan structure offers a solid foundation to flip a $120,000 property. The LTARV of 68.57% ensures you have enough capital for both purchasing and renovating the property.

Example 2: No Experience, Excellent Credit

• Purchase Price: $120,000

• Tier: 1 (0 similar verifiable experience)

• Credit Score: 750

• Rehab Budget: $30,000

• ARV (After Repair Value): $175,000

• Initial Advance: $96,000 (80%)

• Construction Holdback: $30,000

• Total Loan Amount: $126,000

• LTARV (Loan-to-After-Repair Value): 72%

• LTFC (Loan-to-Full-Cost): 84%

• Interest Accrual: As disbursed

With an excellent credit score of 750, this borrower qualifies for a higher initial advance of 80%, improving the funding for their property rehab. The LTARV of 72% ensures a solid loan-to-value ratio, providing ample room for a profitable flip.

Example 3: Experienced Investor, Strong Project

• Purchase Price: $120,000

• Tier: 4 (5 similar verifiable projects)

• Credit Score: 750

• Rehab Budget: $25,000

• ARV (After Repair Value): $175,000

• Initial Advance: $108,000 (90%)

• Construction Holdback: $25,000

• Total Loan Amount: $133,000

• LTARV (Loan-to-After-Repair Value): 77.71%

• LTFC (Loan-to-Full-Cost): 92.92%

• Interest Accrual: As disbursed

An experienced investor with five similar verifiable projects can access a maximum initial advance of 90%, allowing more flexibility for renovations. The LTARV of 77.71% provides a strong margin of equity to mitigate risks and increase the potential for a profitable flip.

Refinancing with "As Is" Value for Maine Projects

If you've renovated a property and it's increased in value, OfferMarket offers you the option to refinance based on the “As Is” value instead of the total cost basis. This allows you to secure a higher loan amount, taking advantage of the appreciation in your property’s market value.

Here’s what you’ll need for refinancing using the "As Is" value:

• The property must be in habitable condition and meet a C4 standard or higher.

• The property must have been seasoned for at least 3 years.

• A minimum credit score of 680 is required.

• You must be in Tier 3 or higher, with at least 4 similar verifiable rehab projects.

• There must be clear evidence showing that the "As Is" value exceeds the cost basis, supported by comparable sales in the area.

Wholesaler Transactions in Maine

For properties acquired through wholesalers, you can include the assignment fee or the double-close price in your cost basis, as long as it doesn't exceed 20% of the purchase price between the wholesaler and the seller. For example:

• A-B Contract (original purchase): $100,000

• B-C Contract (assignment fee): $25,000

• As Is Value: $125,000

• Value Basis for Initial Advance: $120,000

We require the following documents for wholesale deals in Maine:

• Full chain of contracts (A-B, B-C).

• The wholesaler’s operating agreement.

• No finder’s fees or referral fees will be financed.

This ensures a fair transaction where financing is based on a justified and realistic property value.

Maine Fix and Flip Loan: Construction Holdback and Valuation Process

Managing finances during property renovations in Maine can be tricky, especially with the state’s varied geography and market conditions. Our Fix and Flip loan program is built to offer flexibility and clarity, particularly when it comes to construction holdbacks and valuations, so you always have access to the necessary funds for your renovations.

How the Construction Holdback Work

The construction holdback ensures that funds are distributed based on your rehab project’s progress. You’ll request draw funds for reimbursement once work is completed, based on the verified scope of work.

If you have the liquidity to cover the renovation costs without using the holdback, you can opt for no construction holdback, allowing you to fund the work without waiting for reimbursements.

Interest Accrual for Larger Loans For loans above $100,000, we won’t charge interest on any undrawn construction holdback funds. This is based on the "As Disbursed" interest accrual method, giving you more flexibility in managing your project costs.

Here’s a breakdown to help you manage your rehab expenses efficiently:

These flexible draw options allow you to manage your rehab expenses efficiently, ensuring funds are only drawn when necessary.

Appraisal and In-House Valuation for Maine

To ensure your project in Maine is properly funded, we require a valuation for all Fix and Flip loans. Depending on your project type and location, we may use an in-house valuation, a third-party exterior appraisal, or a full interior appraisal.

In-house Valuation Criteria

For eligible borrowers, an in-house valuation can be used instead of a full appraisal under the following conditions:

• Property Type: Single-family, duplex, triplex, or quadplex.

• Tier: Tier 4 or higher.

• Credit Score: 720+

• Rural: No

• New Market: No

• LTARV: 70% maximum

Exterior Appraisal Criteria

An exterior appraisal is acceptable for properties acquired through foreclosure auctions, REO sales, sheriff’s sales, or bankruptcy sales. It must be dated within 120 days of the settlement date, with recertification required if it is between 120-179 days old.

Interior Appraisal Criteria

For any other scenario not covered by an exterior appraisal, a full interior appraisal is required. Here's the breakdown:

• Property Type: Single Family

  • Appraisal Forms: 1004 + 1007 ARV with As Is value included (non-gridded)

• Property Type: 2-4 Unit

  • Appraisal Forms: 1025 + 216 ARV with As Is value included (non-gridded)

• Property Type: Condo

  • Appraisal Forms: 1073 + 1007 ARV with As Is value included (non-gridded)

Unless a transfer of appraisal applies, OfferMarket will order the appraisal directly through an approved Appraisal Management Company (AMC). You will be responsible for paying the appraisal invoice to ensure timely loan processing.

Appraisal Transfer

If an appraisal has already been ordered by another lender, OfferMarket allows the transfer of that appraisal, provided the following conditions are met:

• The appraisal is less than 180 days old at the closing of our loan.

• The appraisal is re-certified if it is between 120-179 days old.

• The transfer letter certifies compliance with Appraiser Independence Requirements (AIR).

Key Loan Details for Maine Fix and Flip Loans

To ensure you have a comprehensive understanding of the loan terms, here are the key details for the Fix and Flip loan program in Maine:

Maine Fix and Flip Loan: Extensions and Loan Requirements

At OfferMarket, we understand that real estate projects in Maine can face delays. However, we recommend minimizing the need for extensions to keep your costs and timeline under control.

Why Extensions Should Be Avoided in Maine

Here are some factors to consider to avoid loan term extensions:

• Inexperienced Contractors: Delays and cost overruns are more likely if you’re working with an inexperienced contractor.

• Ambitious Rehab Scope: If your rehab plan exceeds your experience or available liquidity, it may lead to difficulties.

• Zoning and Permitting Delays: In Maine, zoning approvals and permits can take time, especially in rural areas.

• Limited Access to Property: If you face access issues, such as tenant leases or evictions, it could cause delays.

• Lack of Dual Exit Strategy: It’s essential to have a backup plan (either selling or refinancing) in case your original strategy faces setbacks.

By addressing these issues early, you can significantly reduce the likelihood of needing an extension.

Extension Limits for Maine Fix and Flip Loans

If, despite your best efforts, you find it necessary to extend your loan term, we offer the following options for extending the loan period:

Extensions can be requested in 3- or 6-month increments, and must be approved by OfferMarket based on specific criteria.

Extension Terms and Fees

If your project in Maine requires an extension, the following fees will apply:

Extension Prerequisites: To qualify for an extension, you’ll need to confirm that your Fix and Flip insurance policy is in effect for the entire duration of the extension period.

Ineligible Property Types for Maine

Not all property types are eligible for Fix and Flip loans in Maine. The following property types are ineligible for funding:

• Mixed Use

• 5+ unit multifamily

• Condotels

• Co-ops

• Mobile/Manufactured Housing

• Commercial Properties

• Cabins/Log Homes

• Properties with Oil/Gas Leases

• Operating Farms, Ranches, Orchards

• Vacation/Seasonal Rentals

• Unique/Exotic/Luxury Properties

• Unpaved or Dirt Roads

Exception Scenarios:

• 660-679 Guarantor Credit Score: Additional requirements apply.

• Leasehold (Ground Rent) Properties: Special documentation or conditions may be required.

• Small Single-Family Properties: Properties between 500 and 699 sq ft may have different requirements.

Borrower and Guarantor Requirements for Maine

To qualify for an OfferMarket Fix and Flip loan in Maine, there are specific requirements for the borrowing entity and guarantors. Below are the key eligibility criteria:

Liquidity Verification

We verify that the guarantor(s) have the required liquidity for the project, including cash to close and additional rehab funds. Eligible liquid assets include:

• Bank accounts (personal or business)

• Brokerage accounts

• Retirement accounts (50% reduction applies)

You will need to submit the two most recent bank statements to verify liquidity. Additionally, a Letter of Explanation (LOE) may be required for large deposits.

Credit and Background Items

Your credit and background check are vital to the loan approval process. We assess the following:

Maine Fix and Flip Loan: Interest Reserves and Documentation Requirements

To ensure smooth operations during your project, we provide interest reserves and straightforward documentation processes for efficient funding.

Interest Reserves for Maine Projects
Interest reserves refer to the interest payments collected on the settlement statement and held in servicing escrow. These reserves are used to cover your accrued interest and are drawn down before monthly payments begin from your own bank account.

Interest Reserve Scenarios

Financed Interest Payments for Liquidity Protection
To protect your liquidity and avoid compromising your credit score, you may be eligible for financed interest payments. This allows you to add the interest accrued to your payoff statement, rather than making monthly payments during the rehab process.

For example, if your loan amount is $100,000 at a 12% interest rate over 9 months, the accrued interest would be $9,000. This amount will be reflected in your payoff statement along with the unpaid principal.

Maine Fix and Flip Loan: Documentation Requirements

For efficient loan approval, we require the following documentation for both purchase and refinance transactions:

Purchase Transaction Requirements

Refinance Transaction Requirements

Special Requirements for Loans Over $1M

Loans above $1M (up to $2M) require additional requirements to ensure the project’s viability:

Ready to Flip in Maine? Request Your Loan Now!

You’ve got the details—loan amounts, ARV limits, funding breakdowns, fees, and terms. Whether you're a first-time investor in Lewiston or a pro scaling up in Portland, OfferMarket’s Maine Fix and Flip Loan Program has you covered. Our approach prioritizes your success with a <0.5% default rate and risk-focused lending.
The Maine market is prime for investment—start your application today and let’s build your real estate wealth together!

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