Pennsylvania Fix and Flip Loan
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Last Updated: April 14, 2025
Are you ready to tap into Pennsylvania's thriving real estate market? Whether youâre flipping homes in the vibrant centers of Philadelphia, Pittsburgh, or Harrisburg, or targeting charming properties in smaller towns like Lancaster and Erie, OfferMarketâs Fix and Flip Loan Program is designed to help you transform your investment ideas into profitable ventures. We supply fast, reliable, and competitively priced capital to support the purchase and renovation of residential propertiesâcatering to both newcomers and seasoned investors alike.
Letâs explore how our program works in Pennsylvania, why now is an opportune time to dive into the market, and how OfferMarketâs financing can drive your next successful project.
What is a Fix and Flip Loan?
A Fix and Flip Loanâoften referred to as a "hard money loan" or "bridge loan"âis specifically engineered to help you acquire and rehabilitate properties with the goal of selling for a profit or refinancing into rental units. At OfferMarket, your loan is structured in two key components:
Initial Advance: Up to 90% of the purchase priceâdisbursed directly to the title company at closing.
Construction Holdback: Up to 100% of your rehabilitation costsâreleased through draw reimbursements as the work progresses.
The flexibility in exit strategy means you choose whether to flip quickly for a profit or refinance into a rental asset. With market conditions ever changing, a flexible exit approach is the key to adapting successfully.
Why Pennsylvaniaâs Real Estate Market Is Ideal for Fix and Flip Projects
Pennsylvania offers a dynamic and steadily growing real estate environment. From the bustling urban energy in Philadelphia and Pittsburgh to the historic charm found in smaller towns like Lancaster or Erie, the Keystone State presents opportunities for every type of investor. Consider these key factors:
Robust Economic Environment: Thriving sectors such as healthcare, education, manufacturing, and technology create a stable job market that continuously supports the demand for updated homes.
Growing Rental and Resale Markets: A steady influx of new residents and young professionals drives the demand for quality rental properties while maintaining a vibrant resale market.
Diverse Property Inventory: Whether youâre interested in single-family homes, townhomes, or multi-unit buildings, Pennsylvaniaâs varied property offerings are ideal for both first-time flippers and seasoned developers.
Whether youâre focusing on a property in downtown Philadelphia or planning a suburban flip on the outskirts of Pittsburgh, OfferMarket's Fix and Flip Loan is your gateway to success in the Keystone State.
What You Get with Our Fix and Flip Loan Program in Pennsylvania
Below is a detailed breakdown of what to expect when you select OfferMarket for your fix-and-flip project in Pennsylvania. Every aspect is designed to provide clear, straightforward information so you can proceed with confidence.
1. Loan Amount Details
| Criteria | Details |
|---|---|
| Minimum Loan Amount | $25,000 |
| Maximum Loan Amount | $2,000,000 |
| How Itâs Determined | Based on the purchase price, rehabilitation budget, and ARV (After Repair Value). Our loans are structured to ensure you have adequate capital for every facet of your project. |
2. After Repair Value (ARV) Requirements
Minimum ARV: $100,000 â established to ensure project profitability.
Maximum Loan-to-ARV (LTARV): Up to 75%, with adjustments according to experienceâ70% for more complex rehabs or less seasoned investors.
ARV Calculation:
We use appraisal reports or in-house valuations to quickly and accurately determine your property's post-renovation value
3. Funding Breakdown
| Funding Component | Details |
|---|---|
| Initial Advance | Up to 90% of the purchase price (80% for beginners, 90% for experienced investors). |
| Construction Holdback | Up to 100% of rehab costs, disbursed through self-serve draw requests. |
| Down Payment | Minimum $10,000 required for properties under $100K. |
| Draw Schedule | Flexible with no set minimum or maximum number of draws (e.g., 50% funding for materials delivered but not yet installed). |
4. Interest Rate and Fees
| Fee | Amount |
|---|---|
| Interest Rate | Market-based, tailored to each deal individually. |
| Origination Fee | 1.5% to 2 points (with a $2,000 minimum). |
| Other Fees | $270 per draw; $30 wire fee; appraisal costs are borne by the borrower. |
| Interest Accrual | Loans under $100K: Accrue on the full amount. Loans over $100K: Accrue only on funds disbursed. |
5. Loan Term
Duration: Standard term of 12 months, with potential extensions available up to 18â24 months for longer projects.
Extensions: Permitted for up to 50% of the original term (for example, an extra 6 months on a 12-month loan).
Extension Fees: 1% for the first 3-month extension, 2.5% for a 6-month extension.
6. Repayment Structure
Payment Type: Interest-only payments during the term with a balloon payment at the conclusion.
Prepayment Penalty: Noneâearly repayment is free of penalties.
Recourse: Full recourse is required, with 51% of the borrowing entityâs value for purchases and 100% for refinancing.
7. Exit Strategy Requirements
For a Sale:
Minimum 30% ROI.
At least $15,000 in profit.
For Refinancing:
- Minimum 1.1 DSCR (Debt Service Coverage Ratio) after repairs.
Flexibility:
Choose between flipping or refinancing based on evolving market conditionsâour program supports both strategies in Pennsylvaniaâs dynamic real estate arena.
8. Eligibility Criteria
| Criteria | Details |
|---|---|
| Experience | Not mandatory. Beginners start at Tier 1 (80% advance) while seasoned investors can progress up to Tier 5 (90% advance). |
| Credit Score | 680 minimum, with potential flexibility for scores between 660-679. |
| Borrowing Entity | Must be set up as an LLC or Corporation. |
| Cash Reserves | Cash to close plus 25% of the rehab budget in liquid assets is required. |
9. Project and Property Requirements
| Requirement | Details |
|---|---|
| Eligible Property Types | 1-4 unit residential properties (including single-family homes, duplexes, triplexes, quadplexes, condos, townhomes, and PUDs). |
| Minimum Square Footage | Single-family: ⼠700 sq ft; For 2-4 units: ⼠500 sq ft per unit; Condo: ⼠500 sq ft. |
| Maximum Acreage | 5 acresâideal for rural flips in Pennsylvania. |
| Rehab Scope | Light, moderate, heavy, and extensive rehab scopes are permitted based on investor experience. |
10. Risk and Approval Process
Underwriting:
We assess ARV, rehab scope, market conditions, and credit profile to determine the optimal financing for your project.Valuation:
An appraisal report or our in-house valuation is required to establish ARV.Approval Timeline:
Draw approvals typically occur within 0â2 days.
Initial funding is determined by the speed of documentation submissionâOfferMarket ensures a swift and efficient process.
Default Rate:
Fewer than 0.5% of our loans have ever defaulted, underscoring our commitment to your success.
11. Support and Flexibility
Guidance:
Our experienced deal advisors are with you every step of the way, offering access to rehab calculators and expert advice.Rehab Oversight:
App-based draw inspections provide full transparency and control throughout each phase of your project.Advanced Draws:
Funds are disbursed at your discretion and approved as needed to ensure you receive the capital when necessary.
12. Transparency and Fine Print
Sample Costs:
For a $225,000 Pennsylvania property, an experienced investor (Tier 4) might incur approximately $19,312.50 in interest over 9 months, along with total fees around $2,500.
Hidden Costs:
All feesâincluding draw fees ($270), wire fees ($30), and extension feesâare fully disclosed upfront.
Rural and Complex Projects:
Projects in more rural settings may receive a 20% reduction in advance and require 3+ years of investor experience.
Example: Flipping a $225,000 Property in Pennsylvania with OfferMarket
Letâs walk through a real-world scenario in Pennsylvania:
Purchase Price: $225,000
Rehab Budget: $55,000 (a moderate scope, roughly 24% of the purchase price)
ARV: $335,000 (determined based on local market comparables)
Your Profile: Experienced Investor (Tier 4) with a 720 credit score
Loan Breakdown:
| Loan Component | Amount |
|---|---|
| Initial Advance | 90% of purchase price = $202,500 |
| Construction Holdback | 100% of rehab costs = $55,000 |
| Total Loan Amount | $257,500 |
| Down Payment | $22,500 |
| Interest Rate | 10% (market quote) |
| Interest (9 Months) | Approximately $19,312.50 (accrued on funds disbursed) |
| Fees | $2,500 total (including origination, draw, and wire fees) |
Profit Calculation:
Sale Price (ARV): $335,000
Profit:
Profit = $335,000 â $225,000 â $55,000 â $19,312.50 â $2,500 â $33,187.50
With robust ROI, this example demonstrates that OfferMarketâs financing is perfectly suited for Pennsylvania fix-and-flip opportunities.
Required Documentation for Fix and Flip Loans
At OfferMarket, we streamline the loan process to make it seamless and efficient. Your documentation is securely stored within your OfferMarket account for fast access in future applications. Below is the required checklist for both purchase and refinance transactions.
Purchase Transaction Requirements
| Required Document | Details |
|---|---|
| Purchase Contract | Fully executed by both buyer and seller. |
| Credit Report | A soft tri-merge credit report for each member of the borrowing entity 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 | Government-issued ID (e.g., driverâs license, passport, or similar). |
| Borrowing Entity Documents | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9. |
| Scope of Work | A detailed rehab budget used to calculate ARV. |
| Appraisal Report | A link to pay for the appraisal invoice will be provided; the appraisal is then uploaded to your loan file. |
| Bank Statements | The two most recent statements for each guarantor. Personal accounts (bank, brokerage, retirement) are acceptable. |
| Letter of Explanation | Provided if requested by our underwriting team (e.g., for large deposits, late payments, or background issues). |
Refinance Transaction Requirements
| Required Document | Details |
|---|---|
| Settlement Statement | Fully executed by both buyer and settlement agent. |
| Credit Report | A soft tri-merge credit report for each member of the borrowing entity 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 | Government-issued ID (e.g., driverâs license, passport, or similar). |
| Borrowing Entity Documents | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9. |
| Sunk Costs | Detailed line items and the associated costs already incurred. |
| Scope of Work | A detailed rehab budget to calculate ARV and direct rehab work. |
| Appraisal Report | A link to pay the appraisal invoice will be provided; the report is then uploaded to your loan file. |
| Bank Statements | The two most recent statements for each guarantor. Personal accounts (bank, brokerage, retirement) are acceptable. |
| Letter of Explanation | Provided if requested by our underwriting team (e.g., for large deposits, late payments, or background items). |
Special Requirements for Loans Over $1M
For loans exceeding $1M (up to the $2M cap), adjusted guidelines apply due to the elevated stakes. Hereâs what is necessary to qualify:
| Criteria | Explanation |
|---|---|
| Experience | Minimum of 3 completed projects, preferably at similar or higher price points. |
| Market Liquidity | At least 3 comparable sales within a 2-mile radius, sold on the MLS within the past 6 months. |
| Credit Score | A minimum of 680 FICO with at least 5 trade lines and a 24-month credit history. |
| Rural Designation | Not eligible if categorized as rural by the CFPB and USDA or per the appraisal report. |
| Track Record | Required for each member of the borrowing entity. |
Having your paperwork in order ensures fast, accurate loan processingâresulting in quicker approvals, smoother funding, and positioning you for success in your fix-and-flip projects. With OfferMarket, lengthy approval processes are a thing of the past as your documents remain securely stored for future applications.
Why Choose OfferMarket for Fix and Flip Loans
At OfferMarket, weâre more than a lender; weâre your strategic partner in real estate wealth-building. With a remarkable default rate of under 0.5% across our lending portfolio, we are fully committed to the success of investors like you. Hereâs what sets us apart:
Expert Risk Management:
We provide structured guidance to ensure every deal is a strategic win.Flexible Financing:
Loan terms are customized to suit your project, featuring competitive rates and a variety of financing options.Comprehensive Support:
From expert loan advice to detailed rehab planning, our dedicated team supports you at every step.Fast Funding:
Rapid approvals and swift disbursements mean you can launch your project immediately.
Key Features of Our Fix and Flip Loans
| Feature | Details |
|---|---|
| Loan Amounts | $25,000 to $2,000,000âideal for projects of any size. |
| High Leverage | Financing available up to 90% of the purchase price and 100% of rehab costs, with a maximum of 75% LTARV. |
| No Experience Required | Accessible for new investors, with higher leverage available for seasoned flippers. |
| Fast Funding | Swift initial advances and rapid draw processing (0â2 business days) for construction expenses. |
| Flexible Terms | Loan durations ranging from 12 to 24 months, with no prepayment penalties. |
| Tailored Risk Management | Experience tiers and rehab scope requirements ensure projects stay manageable. |
| Nationwide Reach | Available across the United States, with local market expertise tailored to Pennsylvania. |
| Transparent Costs | Competitive rates, 1.5â2 points in fees, with no hidden charges. |
Ready to Flip in Pennsylvania? Request Your Loan Now!
Pennsylvaniaâs real estate market is primed for your next fix-and-flip endeavor. With OfferMarketâs Fix and Flip Loan Program, you receive the capital, expert guidance, and flexible terms essential for success. Our streamlined approval process, clear documentation, and rapid funding ensure you can start your profitable investment right away.
Thousands of real estate investors get value from OfferMarket every month. Membership is entirely free and includes the following benefits:
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