Frequently Asked Questions

What is a hard money loan?

A hard 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.

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 states do Walnut Street Finance lend to?

Currently we lend to the following areas:

  • Washington, DC
  • Northern Virginia (Alexandria, Arlington, Fairfax, Falls Church and Loudoun County)
  • Southern Virginia (Richmond, Norfolk, Chesapeake, Virginia Beach, and Hampton Roads)
  • Maryland
  • Delaware
  • North Carolina (Raleigh-Durham)

How important is my credit score?

Hard money lenders loan money based primarily on the value of the property. 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, contact us 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, proof of income and property information.

How long does it take to close?

We can be prepared to close in a matter of days.

Can I roll closing costs into the loan?

Yes, you can roll points and other closing costs into the loan.

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

No, we can only fund projects that are non-owner occupied.

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.