How to Find Construction Loans in the State of Washington
Construction Loan Terms in Washington
If a Washington lender is willing to lend on a commercial real estate development project, the Washington banking industry’s standard for construction loans is typically a 12-18 month term for the temporary construction period (Prime + 1-3%).
Commercial Real Estate loan points of 1-5% are typical in Seattle and Vancouver. Additionally, a voucher fee for graduation and approved disbursement of construction costs at .5-1% are included in the disbursed funds amount. Additional commercial real estate title fees in the State of Washington vary, including fees for the permanent commercial real estate term loan which will be added at closing.
Another option for financing construction projects in Washington is the revolving guidance line, similar to an equity line of credit for residential loans in Olympia and Spokane. Equity in Washington Commercial Real Estate is collateralized at a percentage with a line of credit deemed specific for the development project costs until the maturity of the commercial real estate loan. The line of credit for Washington Commercial Real Estate is basically utilized for multiple buildings, including mixed-use, multi-family, and hospitality, augmenting the various phases of a construction project, or subdivision development. This type of construction loan is similar to the temporary 12-18 month construction loan for Washington development projects with the exception that it is a revolving line of credit.