New Construction Loans in Washington
From the foundation up, we’re by your side!
Ready to kick off your new construction project? BNB Lending offers fast, flexible financing with 1 to 2-year interest-only terms to help you get the job done efficiently. We provide funding for residential properties (1 to 4 units), multi-family units, condos, apartment complexes, commercial buildings, and hotel construction projects. Our financing covers up to 85% of the purchase price and 100% of vertical construction costs, ensuring your project is ready for rent or sale. Plus, with no prepayment penalties, you can refinance or sell whenever you're ready. Our quick closing process means you can get quoted and funded in as little as 14 days.
How to qualify
To obtain a quote, we will need the following information:
Property Value and
Purchase Price
Down Payment
Amount
Credit Score
Asset Types
- Single Family Homes
- Townhomes
- Condos
- 2 - 4 Units (Duplex, Triplex, Quadplex)
- Multi-Family: 5 - 8 Units
- Mixed-Use: 2 - 8 Units
- Multi-Family: 9+ Unit
Loan Terms
- Loan Sizes:
$100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
- Purchase LTV:
Up to 85%
- Rate & Term Refinance LTV:
Up to 80%
- Cash Out Refinance LTV:
Up to 80%
- Amortization:
30 Year % 40 Year Amortization Options Available
- Term Lengths:
5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
- Floor Rate:
5.50% (subject to change daily due to market volatility)
- Full Recourse
with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
- DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
- Vesting:
Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
- Average Time to Close:
14 to 35 days
Wondering if you qualify for investment property financing in your area?
We offer lending services in all 50 states!
Frequently Asked Questions
What are the requirements for getting a construction loan?
To get approved for a construction loan, you’ll need architectural plans, building permits, a licensed contractor, and a detailed line-item budget. Most lenders also require a 660+ credit score and a 15%–20% down payment. You must either own the land or be under contract. BNB Lending funds draws based on build progress. We also review builder experience, exit strategy, and liquidity. The more complete your documentation, the faster and smoother your approval process will be.
How do home construction loans differ from traditional financing options?
Home construction loans differ from traditional financing by offering phased disbursements and interest-only payments during construction. Traditional loans fund fully at closing and begin amortization immediately. Construction loans focus more on the builder, timeline, and feasibility than personal income. Once the project is finished, you typically refinance into a DSCR or long-term fixed-rate mortgage. This structure helps investors control cash flow while meeting build milestones without excessive debt service pressure.
What credit score is needed to qualify for new construction financing?
A credit score of 660 is generally the minimum for construction financing. That said, builder experience, liquidity, and documentation quality all play major roles in approval. If your score is slightly below 660 but your team is strong and the project is well-planned, we may still fund the deal. We prioritize execution and exit strategy over strict FICO thresholds. Our lending model supports builders and investors who don’t always fit the mold.
Are construction loans available to small business owners or just individuals?
Construction loans are available to individuals and business entities including LLCs and corporations. Many of our borrowers are real estate investors, STR hosts, or developers operating through a company. We typically require a personal guarantor with 20–25% ownership. Income verification isn’t a primary factor—what matters is the project’s feasibility, the builder’s credentials, and the quality of your documentation. Our process is built for active investors who need fast, flexible financing.
What is the typical loan rate for construction financing?
Construction loan rates typically start around 5.50%. Final rates depend on credit, documentation, builder history, and overall deal structure. These loans are interest-only during construction, helping preserve cash flow while your project is underway. After completion, borrowers often refinance into long-term mortgage options like DSCR loans. Our pricing reflects project clarity and execution risk. We reward organized builders and investors with faster closings and better terms.
What types of loans are best for new construction projects in Washington?
The best loans for new construction projects in Washington are phased draw loans with interest-only payments during the build. Whether you're developing STRs near the Olympic Peninsula, duplexes in Seattle, or multifamily projects in Spokane, we finance up to 85% of land value and 100% of vertical costs. Once construction wraps, borrowers usually refinance into DSCR or long-term mortgage loans. Our Washington programs are designed for speed, flexibility, and alignment with real investor timelines.
