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Hard money and fix and flip loans in Washington, DC
Loans for rowhouse renovations, two-unit conversions, condos and small apartment buildings in all eight wards of the District.
The Washington market for investors
The District’s housing is dominated by rowhouses, most of them built between the 1880s and the 1940s, along with apartment buildings and newer condos. Federal government, contractors, universities, hospitals and embassies keep rental demand steady across the city.
Investors buy dated rowhouses to renovate and resell, convert larger rowhouses into two units where the zoning allows, and hold long-term rentals near Metro stations. DC has more rules for investors than most cities, from the vacant property tax to TOPA, so local knowledge shortens the path to a closing.
Neighborhoods investors ask about
- Petworth, Brightwood and Sixteenth Street Heights: large rowhouses and semi-detached homes to renovate, many with basements to finish
- Brookland, Michigan Park and Woodridge: detached and semi-detached homes near Catholic University and the Red Line
- Trinidad, Ivy City and Eckington: rowhouses close to Union Market and NoMa
- Deanwood, Congress Heights and Anacostia: lower entry prices east of the river, with Anacostia a historic district
- Capitol Hill, Shaw and Bloomingdale: higher-priced rowhouses, much of them in historic districts
Plan for these on a Washington deal
- DC taxes most homes at $0.85 per $100 of assessed value, but a property left unoccupied for 90 days or more must be registered and can be taxed at $5.00 per $100 as vacant. Keep permits current and apply for the construction exemption while you renovate.
- DC’s recordation and transfer taxes are each 1.1% under $400,000 and 1.45% at $400,000 or more. Buyers customarily pay recordation and sellers transfer, so a flip pays one on the way in and the other on the way out.
- Most single-family homes, including a home with one accessory unit, are exempt from TOPA, but buildings with two or more rental units can carry tenant purchase rights. Ask the seller for TOPA documentation before you sign.
- Exterior work in historic districts such as Capitol Hill, Shaw and Anacostia needs historic preservation review as well as a Department of Buildings permit.
- In the rowhouse (RF) zones, two units are allowed as of right, and more need Board of Zoning Adjustment approval. Confirm the zone before you price a conversion.
- A DC rental needs a Basic Business License with a rental housing endorsement, a pre-license inspection for one- and two-family rentals, and registration with the Rental Accommodations Division.
Loans available in Washington
| Program | Use it for | Top leverage |
|---|---|---|
| DSCR rental loans | Purchase or refinance of long-term rentals, rowhouses, condos and small multifamily | 85% loan-to-value to buy, 80% on a cash-out refinance |
| Ground-up construction loans | Building a home, an infill rowhouse or a rental from the ground up, lot included | 90% of cost for experienced builders, up to 70 to 75% of the finished value |
| Fix and flip loans | Purchase plus renovation of a property you intend to sell | 90% of the purchase price and 100% of the rehab, up to 70 to 75% of after-repair value |
| Portfolio and commercial loans | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal |
Washington hard money loans: common questions
Yes. DC is our focus market. We finance fix and flips at up to 90% of purchase and 100% of rehab, rentals at up to 85% loan-to-value, and ground-up construction at up to 90% of cost for experienced builders.
Yes, as a renovation or construction loan on an investment property. Confirm the zone allows the unit count, and budget for a new certificate of occupancy.
DC licenses short-term rentals only in a host’s own primary residence, so investment properties are underwritten on long-term rent.
Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are ready. Rental and DSCR loans take about 30 days, appraisal included. Closings are handled by a title company or settlement attorney.
Looking at a property in Washington?
Send the address, the price and what you plan to do with the property. We will reply with the leverage and pricing that fit your deal.