Mississippi Fix and Flip Loan

Last Updated: April 13, 2025

Welcome to OfferMarket’s Fix and Flip Loan Program, designed for real estate investors in Mississippi. Whether you're diving into your first flip or you're a seasoned pro, our loan program is crafted to provide the financial support you need to make your project a success. From flexible terms to financial backing, we’re here to help you thrive in Mississippi’s ever-evolving property market. Let’s walk you through everything you need to get started.

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

We know that every real estate flip is different, and that's why we offer a program that’s as flexible as your needs. Here's what you can expect when you choose us for your fix-and-flip loan in Mississippi:

1. Loan Amount Details

• Minimum Loan Amount: $30,000 – Ideal for smaller, quicker flips.

• Maximum Loan Amount: $1,800,000 – Larger loans require at least 3 years of experience and solid comps to qualify.
  How It Works: Your loan amount is based on factors like the purchase price of your property, rehab budget, and its After Repair Value (ARV), ensuring you have the necessary funds to complete your project.

2. After Repair Value (ARV) Requirements

• Minimum ARV: $110,000 – This helps ensure your project is profitable.

• Maximum Loan-to-ARV (LTARV): Up to 80% – Adjusted depending on your experience level (70% for beginners with lighter rehabs, and 80% for experienced investors).
  Valuation: We use professional appraisals (such as 1004 + 1007 for single-family homes) or in-house valuations to determine the most accurate ARV estimate.

3. Funding Breakdown

• Initial Advance: Up to 85% of the purchase price – Beginners may qualify for up to 75%, while experienced investors could qualify for up to 85%.

• Construction Holdback: 100% of rehab costs – Funds are released through an easy-to-use app with a quick 0-2 day turnaround.

• Down Payment: Minimum of $12,000 for properties under $120,000—your financial commitment to the project.

• Draws: There’s no limit on draw amounts. 50% of material costs are funded once they are delivered but not yet installed.

4. Interest Rates and Fees

• Interest Rate: Rates are flexible and dependent on market conditions—contact us for the latest rate.

• Origination Fee: 1.5 to 2 points (with a $2,200 minimum) – for example, 2 points on a $110,000 loan would result in a $2,200 fee.

• Other Fees: $290 per draw, $35 per wire transfer, and appraisal costs (all covered by you).

• Interest Accrual: Loans under $110K accrue interest on the full loan amount, while loans above $110K accrue interest only on the funds disbursed.

5. Loan Term

• Duration: Standard loan terms are 12 months, with options for 18-24 months for specific projects.

• Extensions: Available up to 50% of the original 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, with a balloon payment due at the end of the loan term. This structure lets you focus on the flip, rather than worrying about monthly payments.

• Prepayment Penalty: There is no penalty if you choose to pay off your loan early.

• Recourse: Full recourse, with 51% of your LLC or Corporation guaranteeing the loan for property purchases (100% for refinances).

7. Exit Strategy Requirements

• Sale: We require a minimum 30% return on investment (ROI) and at least $16,000 in profit when you sell the flipped property.

• Refinance: After completing repairs, your property will need a minimum debt service coverage ratio (DSCR) of 1.2 to refinance.

• Flexibility: You can choose to either flip or rent your property, giving you the flexibility to adapt to Mississippi’s property market conditions.

8. Eligibility Criteria

• Experience: No experience is required, but loan terms will adjust based on your experience level. Beginners start at Tier 1 (75% advance), while seasoned investors can qualify for up to 85% at Tier 5.

• Credit Score: A minimum score of 690 is required, although we can make exceptions for scores between 680-689 with additional review.

• Borrowing Entity: You must operate through an LLC or Corporation.

• Cash Reserves: You'll need sufficient funds for the down payment plus 25% of your rehab budget in liquid assets (bank accounts, brokerage, or retirement funds).

9. Project and Property Requirements

• Eligible Properties: We finance 1-4 unit residential properties, including single-family homes (min. 750 sq ft), duplexes, triplexes, quadplexes (min. 500 sq ft per unit), condos, townhomes, and PUDs.

• Maximum Acreage: You can flip properties with up to 5 acres of land—ideal for rural Mississippi properties.

• Rehab Scope: From light rehabs (under 25% of the purchase price) to extensive renovations (100%+ of the purchase price). New investors are limited to lighter or moderate rehabs.

• Location: We offer loans throughout Mississippi, excluding a few areas. Rural properties may require 3+ years of experience and a -20% advance adjustment.

10. Risk and Approval Process

Our goal is to make the loan process as smooth and transparent as possible, focusing on ensuring your investment success.

• Underwriting: We review key factors such as ARV, the rehab scope, your flipping experience, and local market conditions (including Mississippi’s trends).

• Valuation: For each loan, we’ll perform an in-house valuation or a formal appraisal depending on the property and deal. Common appraisals include the 1004 + 1007 for single-family homes.

• Approval Timeline: We strive for quick, efficient processing. Draw requests can be processed within 0-2 days, and initial funding depends on how fast you submit the required documents. Speed is crucial, and we understand that—so we act fast to help you seize opportunities.

• Default Rate: Our loan default rate is less than 0.5%. Our team works diligently to guide you through the process and ensure your success.

11. Support and Flexibility

We’re not just here to provide funding—we’re here to help you every step of the way.

• Guidance: Our experts are available to assist you with rehab cost calculations, ARV estimates, and understanding market trends in Mississippi. We’ll help you assess risks, plan your renovation, and ensure you have a solid exit strategy.

• Rehab Oversight: We know that staying within budget and schedule is essential for success. Our self-serve draw inspections keep you in control and ensure the rehab stays on track. You can request funds easily through our app, with a fast 0-2 day turnaround.

• Advanced Draws: At our discretion, we provide advanced draws for materials and labor, so you’re always funded when you need it.

12. Transparency and Fine Print

We believe in being upfront about our terms. Here’s a breakdown of some important fees and terms to keep in mind.

• Sample Costs:

• Purchase Price: $160,000

• Rehab Budget: $55,000

• ARV: $240,000

• Loan Amount: Up to 80% of ARV ($192,000)

• Down Payment: $16,000

• Initial Funding: Up to 85% of purchase price ($136,000 for experienced investors)

• Rehab Holdback: Up to 100% of rehab budget ($55,000)

• Interest Rate: Variable—please contact us for current rates.

• Origination Fee: 1.5 to 2 points ($2,200 minimum).

• Other Fees: $290 per draw, $35 per wire, and any applicable appraisal fees.

Hidden Costs:

• Draw Fees: $290 per draw request

• Wire Fees: $35 per wire transfer

• Extension Fees: If you need an extension, additional fees apply—1% for 3 months, 2.5% for 6 months

• Rural and Complex Terms: Rural properties may incur a -20% advance adjustment. More complex or extensive rehabs may have a reduced LTARV of 70%.

Why Choose OfferMarket’s Fix and Flip Loan in Mississippi?

Mississippi's real estate market offers incredible opportunities for investors looking to flip houses, with many seeing substantial returns from property renovations and sales. Our Fix and Flip Loan Program provides the necessary capital to help you succeed while ensuring you avoid roadblocks along the way. Whether you're new to the game or an experienced investor aiming to scale, our tailored loan terms are designed to meet your needs and help you make the most of Mississippi's market.

Why Mississippi?
Mississippi is a state with steady demand for real estate, particularly in areas like Jackson, Gulfport, and Biloxi. Its growing economy and diverse property markets create a wealth of investment opportunities. Whether you’re focusing on properties in bustling cities or more suburban and rural locations, OfferMarket's flexible loan program offers the financial support you need to succeed in Mississippi’s real estate market.

How Our Fix and Flip Loan Program Can Help You Profit in Mississippi

Mississippi offers a wide range of real estate opportunities, whether you're looking at urban projects or suburban flips. With OfferMarket’s loan program, you’ll secure the necessary funding for both the purchase price and rehab costs. Our simple, transparent fee structure, fast approval process, and quick access to draw funds make it easy for you to stay on top of your project and maximize your profits without worrying about financing hurdles.

How Our Mississippi Fix and Flip Loan Works

Here’s how the program works in action:

Property Purchase Details

• Property Value: $200,000

• Rehab Budget: $60,000

• After Repair Value (ARV): $300,000

Loan Structure

• Loan Amount (80% of ARV): $240,000

• Upfront Funding (90% of Purchase Price): $180,000

• Down Payment: $20,000

• Rehab Funds: $60,000

Final Profit

• Property Sale Price: $300,000

• Loan Repayment & Costs: (Deductions)

• Remaining Profit: (Profit after deductions)

Once the rehab is complete, the property sells for $300,000, leaving you with a significant profit after deducting your loan repayment, rehab costs, and fees.

Required Documentation for Fix and Flip Loans

Our Loan File system is built for efficiency, ensuring quick approval and funding. All your submitted documents are securely stored in your OfferMarket account, making future loan applications faster and more convenient.

Documentation for Purchase Transactions in Mississippi

When purchasing a property for a fix-and-flip in Mississippi, here’s what you’ll need to get started:

• Purchase Contract: Fully executed contract signed by you and the seller.

• Credit Report: Soft tri-merge credit report for each guarantor.

• Background Report: A check on each member of your borrowing entity to assess risk.

• Track Record: A history of your past real estate projects.

• ID Verification: A government-issued ID (driver's license, passport, or Green Card).

• Borrowing Entity Docs: Articles of Organization or Incorporation, Operating Agreement or Bylaws, Certificate of Good Standing, and W-9.

• Scope of Work: Detailed rehab budget outlining your plans.

• Appraisal Report: We’ll provide a link for you to pay for the appraisal fee.

• Bank Statements: Two recent personal bank statements for each guarantor.

• Letter of Explanation (LOE): If necessary, provide clarification for certain items like large deposits.

Documentation for Refinance Transactions in Mississippi

If refinancing a property you already own, we’ll need:

• Settlement Statement: Signed by you and the settlement agent.

• Credit Report: For each guarantor.

• Background Report: For all members of your entity.

• Track Record: Required for each entity member.

• ID Verification: Valid ID for each guarantor.

• Borrowing Entity Docs: Similar to purchase transactions (Articles of Organization, Operating Agreement, Certificate of Good Standing, and W-9).

• Sunk Costs: A breakdown of what you’ve already invested in the property.

• Scope of Work: Rehab budget to help us calculate ARV.

• Appraisal Report: Follow the link to pay the invoice for the appraisal fee.

• Bank Statements: Two recent personal bank statements.

• Letter of Explanation (LOE): For any financial details that need clarification.

Special Requirements for Loans Over $1 Million in Mississippi

For loans ranging between $1 million and $2 million, we require additional documentation to ensure the investment is solid.

• Experience: At least 3 completed projects at a similar or higher price point.

• Market Liquidity: Minimum of 3 comparable sales within a 2-mile radius, sold on the MLS in the past 6 months.

• Credit Score: Minimum score of 680, with at least 5 trade lines and a 24-month history.

• Track Record: A proven track record for each member of your entity.

These additional requirements ensure your project is a solid investment in Mississippi’s growing real estate market.

Get Your Instant Fix and Flip Loan Quote in Mississippi

We’ve simplified the loan application process to make your experience as smooth and efficient as possible. Once you submit your documentation, they’ll be securely stored in your account for future reference, making future loan applications easy. Ready to take the next step? Start the process now and get the capital you need for your next fix and flip project in Mississippi!

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