Frequently Asked Questions

Real estate investing can sometimes feel overwhelming. We field a lot of questions from real estate investors and we’ve listed the ones that we get asked the most. However, if you don’t see an answer to your question or you need additional information, don’t hesitate to contact us by clicking the button below or giving us a call at 703-273-3500.

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What is a private money loan?

A private money loan is a short-term, interest-only loan that is secured by the value of the property rather than the borrower. Real estate investors and developers commonly use these types of loans to fund their projects because they are easier and faster to obtain than traditional bank loans.

How much money can I borrow?

Our loan amounts vary depending on the project type. Typically, the ranges are:

  • Fix and Flip Loans: $150,000 to $2,500,000
  • Rental Property Loans: $150,000 to $2,500,000
  • Commercial Loans: $250,000 to $4,000,000

What do the terms “loan to value” (LTV) and “after renovation value” (ARV) mean?

Loan to value is the amount of money borrowed compared to the cost, or value, of the property. After renovation value is an estimated value of a property after renovations. Walnut Street Finance will typically lend up to 75% ARV for a project, depending on the property and the borrower.

What are your standard loan terms?

We work closely with our borrowers to put together a financing solution that best meets the needs of the borrower. Our terms are flexible, depending on the deal and borrower experience. With that being said, the standard terms that we start off with are listed below.

Fix and Flip Loans

  • Purchase: Up to 85% LTV
  • Purchase & Rehab: Up to 85% LTV and max 70% ARV. 100% of rehab budget. 20% down payment.
  • Refinance & Rehab: Up to 65% LTV* & max 70% ARV. 100% of rehab budget.  *on as-is value
  • Cash-out Refinance: Up to 65% LTV
  • Loan Term: 6 to 12 months

Rental Property Loans

  • Purchase: Up to 75% LTV
  • Cash-out Refinance: Up to 65% LTV
  • Loan Term: Up to 24 months
  • Rent Coverage Ratio: 1.25x

Commercial Loans

  • Purchase: Up to 75% LTV
  • Purchase & Rehab: Up to 85% LTV and max 70% ARV. 100% of rehab budget. 20% down payment.
  • Refinance & Rehab: Up to 65% LTV* & max 65% ARV. 100% of rehab budget.  *on as-is value
  • Cash-out Refinance: Up to 60% LTV
  • Loan Term: 12 to 24 months

What states does Walnut Street Finance lend in?

We currently lend and are experts in the following states:

  • Washington, DC
  • Virginia
  • Maryland
  • Delaware
  • North Carolina
  • South Carolina
  • Pennsylvania
  • Texas

We focus on almost all states east of the Rockies, including Mid-Atlantic, Southeast, and Northeast.

How important is my credit score?

Our prefer our borrowers have a minimum credit score of 600. However, since hard money lenders loan money based primarily on the value of the property, we can be flexible during the approval process. We do consider borrower credit history and experience, but our loan programs are flexible enough to work with all borrowers who have a decent deal and borrower profile.

How do I apply for a loan?

To see if you qualify for a loan, apply today or call us at 703-273-3500.

What documents do I need to get started?

Each deal is different and but we generally require a personal financial statement and property information to get started. From there, we will work with each borrower or company to put together a solution that best fits your project and situation.

How long does it take to close?

Approvals can happen as quickly as 5 minutes and we can be prepared to close as quickly as 5 days (we can even do it as quickly as 3 days as long as the borrower has title and settlement company already).

Can I roll closing costs into the loan?

We pride ourselves on requiring minimal cash down from the borrower so we finance all your closing costs and points. To add to that, we also set up interest and construction reserves so that you’re not making monthly payments during the first 6 months of the project.

Can I get a private money loan to renovate my primary residence?

No, we only fund real estate investment properties. We cannot finance owner-occupied or primary residence renovations and construction.

Can you extend the term of my loan?

Yes. Sometimes projects have permit or construction delays and take more time than anticipated. We can extend the term of the loan if necessary.

Do you have prepayment penalties?

There is no “penalty” and we encourage our borrowers to finish their projects faster than their projected timelines. The faster they finish, the bigger the potential ROI. However, if a loan is paid off within the first three months then the borrower is required to pay up to three months worth of interest payments.

What type of projects/properties do you finance with fix and flip loans?

We finance the following project types with our fix and flip loan offerings.

  • Single-family Residential
  • 2-4 Unit Residences
  • Condominiums
  • Townhomes
  • Multi-family Apartments
  • Mixed-use Buildings (min. 50% residential)
  • Small Balance Commercial

Do you provide private money loans for commercial projects?

We finance the following project types with our commercial loan offerings.

  • Multi-family
  • Apartments
  • Mixed-use
  • Single-use
  • Office
  • Light Industrial
  • Warehouse
  • Retail