Utah Fix and Flip Loan
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Last Updated: April 14, 2025
Welcome to OfferMarketâs Fix and Flip Loan Programâspecially tailored for real estate investors throughout Utah! Whether youâre renovating a charming home in Salt Lake City, breathing new life into a property in Provo, or seizing opportunities in Utahâs breathtaking rural landscapes, our program provides the capital and flexibility you need to succeed. Discover how our loan program works and how you can tap into Utahâs dynamic real estate market.
Why a Fix and Flip Loan in Utah Is a Smart Investment
Utah offers a distinctive investment landscape with a blend of bustling urban centers and serene rural communities. From the vibrant streets of Salt Lake City to growing hubs like Ogden and scenic mountain towns, Utahâs economic vitality, steady job growth, and desirable quality of life make it a prime market for fix-and-flip ventures. With relatively moderate living costs and an increasing demand for quality housing across diverse settings, our Fix and Flip Loan Program gives you the financial edge to transform properties while capitalizing on Utahâs rising market values.
What You Get with OfferMarketâs Fix and Flip Loan in Utah
At OfferMarket, our comprehensive loan program is designed to meet the specific needs of Utah investors. Hereâs a detailed look at our loan features:
1. Loan Amount Details
Minimum Loan Amount: $25,000 â Ideal for smaller, quick turnaround projects.
Maximum Loan Amount: $2,000,000 â For larger-scale renovations; note that loans exceeding $1M require at least 3 years of relevant experience and strong comparable sales (comps).
How It Works: Your financing is determined by the purchase price, renovation budget, and After Repair Value (ARV), ensuring you have the funds required to complete your project.
2. After Repair Value (ARV) Requirements
Minimum ARV: $100,000 â Ensuring thereâs ample upside on your investment.
Maximum Loan-to-ARV (LTARV): Up to 75% â For beginners, a 70% LTARV for lighter renovations is typical, while experienced investors may secure up to 75% for more extensive projects.
Valuation: We rely on appraisal reports (using formats such as 1004 + 1007 for single-family residences) or our in-house evaluations to determine an accurate ARV for properties in Utah.
3. Funding Breakdown
Initial Advance: Receive up to 90% of the purchase price based on your experience level. Beginners typically obtain an 80% advance, while seasoned investors can secure up to 90%. Adjustments may apply for credit scores under 720 or if youâre a licensed contractor (an extra 10% can be added).
Construction Holdback: Up to 100% of your rehabilitation budget is made available via our user-friendly, app-based draw requestsâusually with a fast turnaround of 0-2 days.
Down Payment: A minimum down payment of $10,000 is required for properties priced under $100K.
Draws: Thereâs no cap on draw numbers. For materials delivered but not yet installed, up to 50% of the cost is immediately funded.
4. Interest Rates and Fees
Interest Rate: Our rates are flexible and aligned with current market conditions. Please contact us for the most up-to-date rate information.
Origination Fee: Charged at 1.5 to 2 points (with a $2,000 minimum fee). For example, 2 points on a $100,000 loan results in a $2,000 fee upfront.
Other Fees: Draw fees are $270 per request, wire transfer fees are $30 per transaction, and appraisal costs are borne by the borrower.
Interest Accrual: For loans under $100K, interest is charged on the full loan amount. For larger loans, interest accrues only on the funds that have been disbursed.
5. Loan Term
Duration: Our standard term is 12 monthsâwith options extending to 18-24 months for select projects.
Extensions: You can extend your loan term by up to 50% (for example, an additional 6 months on a 12-month loan) at a fee of 1% for a 3-month extension or 2.5% for a 6-month extension.
6. Repayment Structure
Payments: Enjoy interest-only payments throughout the renovation, with a single balloon payment due at maturity to keep your cash flow flexible.
Prepayment Penalty: None. You can settle your loan early without facing any extra fees.
Recourse: This is a full recourse loanâwith 51% of your LLC or Corporation guaranteeing purchase transactions (100% for refinances).
7. Exit Strategy Requirements
Sale: The property must yield at least a 30% return on investment (ROI) and generate a minimum profit of $15,000 upon sale.
Refinance: A post-repair debt service coverage ratio (DSCR) of at least 1.1 is required for refinancing.
Flexibility: You can pivot between selling and renting based on prevailing market conditions in Utah.
8. Eligibility Criteria
Experience: No prior experience is required. New investors start at Tier 1 (80% advance), while those with 10+ successfully completed projects can reach Tier 5 (90% advance).
Credit Score: A minimum credit score of 680 is typically needed, though scores between 660-679 may be considered with exceptions.
Borrowing Entity: Applicants must finance through an LLC or Corporation.
Cash Reserves: You must demonstrate sufficient funds to close, plus a reserve equal to 25% of your rehab budget in liquid assets (bank, brokerage, or retirement accounts).
9. Project and Property Requirements
Eligible Properties: We finance a range of residential properties, including single-family homes (at least 700 sq ft), duplexes/triplexes/quadplexes (with 500+ sq ft per unit), condos, townhomes, and planned unit developments (PUDs).
Maximum Acreage: Up to 5 acresâideal for projects in Utahâs rural settings.
Rehab Scope: Whether itâs a light update (rehab costs under 25% of the purchase price) or a full-scale renovation (100%+), we have you covered. Note that new investors are generally limited to light or moderate rehabs.
Location: We fund projects exclusively in Utah. Properties in remote or mountainous areas may face a -20% advance adjustment and typically require a minimum of 3 years of fix-and-flip experience.
10. Risk and Approval Process
Underwriting: We carefully review the ARV, scope of work, your experience, and local market conditionsâwhether youâre working in Salt Lake City or a smaller Utah town.
Valuation: Depending on your project, weâll use either third-party appraisals or our in-house valuations to establish property value.
Approval Timeline: Draw requests are processed within 0-2 days, and initial funding is expedited once all necessary documents are submitted.
Default Rate: With a default rate of less than 0.5%, our track record underlines our commitment to your success.
11. Support and Flexibility
Guidance: Your dedicated deal advisor and risk manager are here to provide tailored adviceâfrom rehab calculators to scope assessmentsâdesigned specifically for Utah projects.
Rehab Oversight: Our self-serve draw inspection process keeps you in full control, streamlining project management.
Advanced Draws: We ensure that funding is aligned with your project milestones, disbursing funds as needed throughout the renovation process.
12. Transparency and Fine Print
Sample Costs: For a $200,000 Utah property, you can expect the following:
Origination Fee (2 points): $2,000 (subject to a minimum fee, actual charge may vary)
Draw Fee: $270 per draw
Wire Fee: $30 per transfer
Rehab Costs: Up to 100% of your approved renovation budget
Additional Terms: Note that rural projects may have a -20% advance adjustment, and extensive rehabs might be limited to 70% LTARV or an 85-90% Loan-to-Full-Cost (LTFC) ratio.
How You Can Profit from Utah Real Estate
Consider an example from the heart of Utah to see how the OfferMarket Fix and Flip Loan Program can work for you:
Purchase Price: $220,000
Rehab Budget: $60,000
After Repair Value (ARV): $350,000
At a 75% loan-to-ARV ratio, you could secure up to $262,500 in financing. The breakdown might look like this:
| Loan Structure | Amount |
|---|---|
| Loan Amount (75% of ARV) | $262,500 |
| Upfront Funding (90% of Purchase Price for Experienced Investors) | $198,000 |
| Down Payment | $22,000 |
| Rehab Funds | $60,000 |
Once renovations are complete and the property sells for $350,000, you would repay your loan and retain the profit after deducting renovation expenses, fees, and any other costs. With the right sale price, this structure can deliver an attractive return on your investment.
Why Choose OfferMarket for Your Fix and Flip Loan in Utah?
When it comes to funding your fix-and-flip projects, OfferMarket offers distinct advantages:
Competitive Loan Terms: Unlock up to 90% financing on your purchase and rehab projects, giving you the capital needed to close deals swiftly.
Flexible Repayment Structure: Benefit from interest-only payments with no prepayment penalties, ensuring steady cash flow during renovations.
Fast and Efficient Processing: With quick approvals and draw requests processed in 0-2 days, our program keeps your project moving forward without delays.
Personalized Support: Our team of experienced professionals offers guidance every step of the wayâfrom financing to rehabilitation strategiesâtailored for Utahâs market.
No Hidden Fees: Enjoy complete transparency. We disclose all fees upfront, including draw, wire, and extension charges, so there are no surprises.
Proven Track Record: With a default rate below 0.5%, our consistent performance reinforces our commitment to your success.
Dual Exit Strategies: Whether you choose to sell or rent your property, our flexible exit options let you adjust your strategy according to Utahâs market trends.
Diverse Project Experience: Our financing options cover a wide range of projects, from single-family homes to multi-unit residential properties across Utah.
Utah Fix and Flip Loan: Documentation Requirements
To streamline your loan approval, we require specific documents to validate your project and confirm eligibility for our program. Below is an overview of the required documentation for both purchase and refinance transactions in Utah.
Purchase Transaction Requirements
For every purchase transaction, please provide the following:
| Loan File Section | Document |
|---|---|
| Purchase Contract | Fully executed contract signed by both the buyer and seller. |
| Credit Report | A soft tri-merge credit report for every guarantor linked to the borrowing entity. |
| Background Report | Background checks for each member of the borrowing entity. |
| Track Record | Documentation of previous projects or relevant experience for each member of the entity. |
| ID Verification | A government-issued ID such as a driverâs license, passport, or similar identification. |
| Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9. |
| Scope of Work | A detailed renovation budget and plan to determine the ARV. |
| Appraisal Report | An appraisal report is required (a payment link for the appraisal invoice will be provided). |
| Bank Statements | The two most recent statements for each guarantor from personal accounts (bank, brokerage, or retirement). |
| Letter of Explanation | If requestedâthis clarifies any large deposits, late payments, or unusual items on your background check. |
Refinance Transaction Requirements
The required documents for refinance transactions are similar, with a few additional items:
| Loan File Section | Document |
|---|---|
| Settlement Statement | A fully executed settlement statement signed by both the buyer and the settlement agent. |
| Credit Report | A soft tri-merge credit report for every guarantor associated with the borrowing entity. |
| Background Report | Background checks for every member of the borrowing entity. |
| Track Record | Prior project documentation for each member of the borrowing entity. |
| ID Verification | A valid government-issued ID such as a driverâs license, passport, or equivalent. |
| Borrowing Entity | Articles of Organization/Incorporation, Operating Agreement/Bylaws, Certificate of Good Standing, and W-9. |
| Sunk Costs | A detailed breakdown of expenses already incurred. |
| Scope of Work | A comprehensive rehab budget and plan to validate the ARV and support the renovation strategy. |
| Appraisal Report | The appraisal invoice will be sent via a provided payment link; the completed appraisal must be uploaded to your loan file. |
| Bank Statements | Two (2) of the most recent statements for every guarantor, from personal financial accounts. |
| Letter of Explanation | If requested, to detail any anomalies such as significant deposits or late payments noted during underwriting. |
Special Requirements for Loans Over $1M
For loans between $1,000,000 and $2,000,000, additional due diligence is required to ensure borrower qualification and project feasibility:
| Criteria | Explanation |
|---|---|
| Experience | At least 3 completed projects of similar or greater value are strongly preferred. |
| Market Liquidity | A minimum of 3 comparable properties must have been sold on the MLS within a 2-mile radius in the past 6 months. |
| Credit Score | A minimum credit score of 680 is required, along with at least 5 active trade lines showing a 24-month payment history. |
| Rural Designation | Properties classified as rural by the CFPB, USDA, or noted in the appraisal report are not eligible. |
| Track Record | Documentation of previous projects is required for every member of the borrowing entity. |
Glossary of Key Terms
Hereâs a handy reference guide for some of the essential terms used in our loan agreements:
| Term | Definition |
|---|---|
| ADU | Accessory Dwelling Unit â an additional living space located on the same property as the primary home. |
| Arms-Length | A fair market transaction conducted by unrelated parties operating independently of each other. |
| Non-Arms-Length | A transaction involving parties with existing personal or business relationships that may impact pricing. |
| Initial Advance | The portion of the total loan allocated toward acquiring the property. |
| Construction Holdback | Funds reserved from the loan specifically for covering rehabilitation costs. |
| LTARV | Loan-to-After-Repair Value â the ratio of the loan amount to the estimated value of the property once renovations are complete. |
| LTC | Loan-to-Cost â the ratio of the loan amount to the combined purchase price and renovation costs. |
| LTFC | Loan-to-Full-Cost â the ratio of the total financed amount to the entire project cost, including purchase and rehab expenses. |
Get an Instant Fix and Flip Loan Quote in Utah
OfferMarket is your trusted partner for financing real estate investments in Utah. Our Fix and Flip Loan Program is built to offer you the flexibility, speed, and competitive terms necessary to succeed in todayâs market. Take the next step toward your next profitable flipârequest an instant loan quote now and turn your Utah real estate vision into reality!
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