Vermont Fix and Flip Loan

Last Updated: April 14, 2025

Welcome to OfferMarket’s Fix and Flip Loan Program for Vermont! Whether you’re a first-time investor or an experienced flipper, our program is designed to provide the flexibility and funding you need to succeed. Below, we’ve broken down the 12 essential details of the program so you can confidently apply for your loan and get started.

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

At OfferMarket, we offer a flexible fix-and-flip loan program tailored to your needs in Vermont. Whether you’re a beginner or an experienced investor, our program provides the funding, support, and competitive terms to help you succeed. Here’s what you can expect when you choose OfferMarket for your next flip.

1. Loan Amount Details

• Minimum: $25,000 – perfect for smaller flips or first-time investors.

• Maximum: $2,000,000 – larger loans require 3+ years of experience and strong comps.

• How It Works: Loan size is tied to your purchase price, rehab budget, and After Repair Value (ARV), ensuring you get the capital you need for your project.

2. After Repair Value (ARV) Requirements

• Minimum ARV: $100,000 – ensures profitability for your project.

• Maximum Loan-to-ARV (LTARV): Up to 75%, adjusted by experience:

  • 70% for beginners (with light rehabs).

  • 75% for experienced flippers (with moderate rehabs).

• Valuation: We use appraisal reports (e.g., 1004 + 1007 for single-family properties) or in-house valuations for accurate ARV estimates.

3. Funding Breakdown

• Initial Advance: Up to 90% of the purchase price:

  • 80% for beginners (limited experience).

  • 90% for experienced investors (5+ flips).

• Construction Holdback: Up to 100% of rehab costs, disbursed through self-serve app-based draw requests with a 0–2 day turnaround.

• Down Payment: Minimum $10,000 for properties under $100K.

• Draws: No minimum or maximum; 50% of materials delivered but not yet installed will be funded.

4. Interest Rate and Fees

• Interest Rate: Flexible, based on market fluctuations—contact us for a personalized rate.

• Origination Fee: 1.5 to 2 points (e.g., 2 points on a $100,000 loan = $2,000 upfront).

• Other Fees:

  • $270 per draw.

  • $30 per wire.

  • Appraisal costs are the borrower’s responsibility.

• Interest Accrual: For loans under $100K, interest is charged on the full loan amount ("full boat"). Loans of $100K+ only accrue interest on funds disbursed.

5. Loan Term

• Duration: Standard loan term is 12 months, with flexibility for larger or complex projects.

• Extensions: Extensions of up to 50% of the loan term are available (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 at maturity.

• Prepayment Penalty: None – you can pay off your loan early without any penalties.

• Recourse: Loans are full recourse. For purchases, 51% of your LLC or Corporation guarantees the loan; for refinances, 100% guarantees.

7. Exit Strategy Requirements

• Sale: Aim for a minimum 30% ROI and a $15,000 profit.

• Refinance: Target a 1.1 DSCR after repairs.

• Flexibility: You can switch between flipping or renting based on market conditions, giving you multiple exit options.

8. Eligibility Criteria

• Experience: Not required for beginners. Investors start at Tier 1 (80% advance). For experienced investors (10+ projects), you qualify for Tier 5 (90% advance).

• Credit Score: Minimum 680, with exceptions for scores between 660–679.

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

• Cash Reserves: You’ll need enough cash to cover closing costs and 25% of your rehab budget in liquid assets (bank, brokerage, or retirement accounts).

9. Project and Property Requirements

• Eligible Properties:
  1–4 unit residential properties including single-family homes, duplexes, triplexes, quadplexes, condos, townhomes, and PUDs.

• Minimum Property Size:

  • 700 sq ft for single-family homes.

  • 500 sq ft per unit for duplexes, triplexes, or quadplexes.

  • 500 sq ft for condos.

• Maximum Acreage: 5 acres, perfect for rural flips.

• Rehab Scope: From light (under 25% of the purchase price) to extensive (100%+ of the purchase price), based on your experience level.

• Location: We lend in Vermont, covering both urban centers such as Burlington, Montpelier, and Rutland, and rural areas. Note that properties in remote locations may face a -20% advance adjustment and require at least 3+ years of experience.

10. Risk and Approval Process

• Underwriting: We evaluate ARV, rehab scope, your experience, and local market conditions (e.g., Burlington comps or Rutland liquidity).

• Valuation: We use either appraisal reports or in-house valuations depending on your deal.

• Approval Timeline: Draws take 0–2 days to process. The timeline for initial funding depends on how quickly you submit your documents—we aim for the fastest turnaround possible.

• Default Rate: Less than 0.5% of our loans have ever defaulted, reflecting our dedication to your success.

11. Support and Flexibility

• Guidance: We’re here to help at every step. As your dedicated deal advisor and risk manager, we offer calculators and rehab scope advice tailored to Vermont’s market. Whether you’re flipping in Burlington or working on rural properties, we have the insights to ensure your success.

• Rehab Oversight: You have full control of the rehab process with self-serve draw inspections and progress tracking.

• Advanced Draws: In certain situations, we provide advanced draws to ensure you have the necessary funding to keep your project moving forward. This is provided at our discretion based on your deal’s needs.

12. Transparency and Fine Print

Sample Costs: Let’s look at a sample scenario to understand the costs for a $120,000 property in Vermont:

• Purchase Price: $120,000

• ARV: $200,000

• Loan-to-ARV: Up to 75% = $150,000

• Initial Advance: Up to 90% of the purchase price = $108,000 (assuming you’re an experienced investor).

• Construction Holdback: Funding available up to 100% of rehab costs, to be requested through app-based draws.

• Fees:

  • Origination fee (2 points) = $2,400

  • Draw fees = $270 per draw

  • Wire fees = $30

  • Appraisal cost (borne by borrower).

• Hidden Costs: Additional fees include:

  • Draw fees ($270 per draw)

  • Wire fees ($30 per wire)

  • Extension fees (e.g., 1% for 3 months, 2.5% for 6 months) – all discussed upfront to ensure no surprises during the process.

• Rural/Complex Terms:

  • Rural areas in Vermont might face a -20% advance adjustment due to the more remote nature of the properties.

  • Extensive rehabs (over 100% of the purchase price) may be capped at a 70% LTARV or 85–90% Loan-to-Full-Cost (LTFC), depending on the complexity of the project.

Why Fix and Flip Loan in Vermont is a Good Choice

Vermont’s real estate market offers significant opportunities for fix-and-flip investors. The state is renowned for its charming small-town allure, historic homes, and a growing demand for modern renovations in urban centers like Burlington and scenic rural areas. Vermont’s unique market dynamics and seasonal demand make it an excellent landscape for property flips.

By securing a fix and flip loan through OfferMarket, you’re not only gaining access to substantial funding but also partnering with a team that understands Vermont’s market intricacies. Our flexible loan program is tailored for both first-time flippers and seasoned professionals.

How You Can Make Profits with Our Fix and Flip Loan Program

Let’s say you’re eyeing a property in Burlington with an estimated value of $120,000. Here’s how you can leverage OfferMarket’s Fix and Flip Loan to maximize your profits:

• Property Purchase: You buy the property for $120,000.

• After Repair Value (ARV): After completing the rehab, your ARV is projected to be $200,000.

• Loan Amount: Based on our loan-to-ARV ratio of up to 75%, you could be eligible for a loan of up to $150,000.

• Funding Advance: OfferMarket can provide up to 90% of the purchase price, or $108,000, depending on your experience.

• Rehab Funding: You can also access up to 100% of the rehab budget via draw requests, giving you the necessary funds to complete the project.

Assuming the rehab costs are around $40,000, once you sell the property for $200,000, you’d be looking at a 30% return on investment (ROI) and a $15,000 profit after deducting loan fees, rehab costs, and other expenses. With OfferMarket, you have the support and funding to make this scenario a reality in Vermont’s real estate market.

Why Choose OfferMarket?

At OfferMarket, we’re committed to providing the best fix and flip loan program for Vermont’s real estate investors. Whether you’re flipping a home in Burlington, working on a project in Montpelier, or planning a rural flip in Vermont’s countryside, we offer:

• Competitive loan terms with up to 90% funding.

• Flexible repayment structures with no prepayment penalties.

• Fast processing with quick draw requests and transparent fees.

• Personalized support from our experienced team of advisors.

Ready to flip your next property in Vermont? Request your loan today and take the first step toward profitable investments in Vermont’s real estate market.

Vermont Fix and Flip Loan: Documentation Requirements

For a smooth and efficient loan approval process, we require specific documentation. This helps us assess the details of your project and ensure compliance with the loan terms. Below are the key documents required for both purchase and refinance transactions in Vermont.

Purchase Transaction Requirements

For all purchase transactions in Vermont, the following documents are required:

Refinance Transaction Requirements

For refinance transactions, we require similar documentation:

Special Requirements for Loans Over $1M

Loans above $1M (up to the $2M maximum) come with additional requirements to ensure that the project is viable and that the borrower has the necessary experience and financial stability. These include:

Glossary of Key Terms

Here’s a quick reference for some key terms used in our loan agreements:

Get an Instant Fix and Flip Loan Quote in Vermont

OfferMarket is your trusted partner for real estate investing in Vermont. Our Fix and Flip loan program is designed to provide you with the financial flexibility and competitive rates you need to succeed in your real estate projects. Get started today by requesting an instant quote for your next fix-and-flip investment.

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Thousands of real estate investors get value from OfferMarket every month. Membership is entirely free and includes the following benefits:

💰 Private lending
☂️ Insurance rate shopping
🏚️ Off market properties
💡 Market insights

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