Increase your property value while making more room for family.
We provide you with all the information you need to start renting out your ADU as soon as construction is complete. This makes it quick and easy to start making money off your investment.
Need more space for in-laws, or when your kids visit home? An ADU is the perfect option to make your priority guests feel more comfortable with added privacy.
In addition to generating passive income with renting, building an ADU will increase your property value allowing you to make even more money when you decide to sell.
Want to ask us something? Check out the FAQs first. We did our best to answer the most common questions.
Wallnut uses a combined loan to value (CLTV) of 125% to determine your borrowing limit. The combined loan-to-value (CLTV) ratio refers to the proportion of loans that a borrower secure on a property in relation to the value of the property. This means the total debt on your primary property can equal 125% of the property’s value. This is because Wallnut uses the future value of your ADU to help underwrite the loan. Example: if your property is valued at $1million and you have a balance of $900k on your primary mortgage, you would be able to borrow an additional $350k to build your ADU! If you had a balance of $1Million left on your primary mortgage, you would be able to borrow $250k for your ADU.
Rates will depend upon your individual credit score but typically range from 6-7%. Granny Flat Financing also offers 5 year interest only rates that allow you to pay even lower monthly amounts for the first five years. If you enroll in Walllnut’s autopay program your interest rate will be lowered by .25% automatically. Terms are generally 20-25 years terms.
The approval process for Granny Flat Financing is simple and fast! We will pull a credit score, verify your primary property ownership and mortgage data, review your ADU plans, and can prequalify you in minutes. No income verification required! The final piece to final loan approval will be an approved ADU building contract (with building permit) with your builder.
Our ADU Loans are secured asset loans designed specifically for financing ADU’s. They are usually for projects between $75,000 and $350,000 and offer desirable rates and extended loan terms (up to 25 years) so borrowers will have affordable monthly payments. An asset secured loan uses the future value of the ADU as loan collateral.
Yes. We can start the loan pre-approval process even if you are unsure of your project cost. We will help you determine your financeable amount based on your specific circumstances. Your Wallnut representative will advise you on your loan options, including the monthly payment amount you can expect to pay with your estimated loan amount.
As a leading Fintech company we are able to offer creative financing solutions for ADU projects nationwide. With decades of home building experience we are able to stay involved with you and your general contractor/ADU manufacturer throughout the project, and pay your contractor and subs directly in stages as work progresses. Unlike other banks, credit unions, and online lenders, our focus is on loans catered for detached ADU’s. Our loan options are secured by the ADU asset, meaning we can offer attractive rates and terms.
In many cases, pre-approval can occur within a day or two! Final approval is based upon providing an approved ADU plan, site approvals, completed building permit application, and a signed building contract with a vetted contractor or manufacturer. This can take several weeks but as the borrower, you can impact the process timeline. Be assured, Wallnut has a great processing team who works with each borrower and lender to expedite the loan process.
We look at your overall credit health, including your credit score. We also look for any recent negative marks, such as bankruptcies or tax liens. We are able to offer financing solutions for most applicants with a credit score of 680 and above, however, it is not entirely credit score driven. The underwriter will review your entire credit profile, past payment performance, and experience with large secured and unsecured loans. All loan decisions are at our discretion. Since the loan is partly secured by the added value of the ADU asset, we will approve the loan based upon the value of the completed ADU asset.
We make disbursements directly to your contractor/builder and to their subs at predefined work milestones, per your build contract, that you acknowledge as complete.
You have two options:
In the vast majority of cases, homeowners choose to pay off the remaining balance of the Wallnut loan through the sale of their home.
However, if the new homeowner wishes to assume the loan, he/she must apply to qualify for a Wallnut loan. If the new homeowner is approved, then he/she assumes full responsibility of the loan. If he/she is not approved, then you must pay off the remaining balance of the Wallnut loan.