Specialty Loans
Custom Construction
Full build from concept to keys — land acquisition through final walkthrough.
Building your dream home from scratch in Washington? Custom construction loans finance everything from land purchase through the final walkthrough — one loan, one closing, locked permanent rate. The path is more involved than a regular purchase, but the result is a home built exactly the way you want it.
Key Features
- • Finance land + build in one loan
- • Interest-only on drawn balance during build
- • Converts to permanent mortgage at completion
- • One-time-close (single closing, single fee set)
- • Draws tied to milestones, third-party inspected
- • 9–18 month build windows standard
How it works
You apply with plans, a GC contract, and a budget. The lender appraises the future home (based on plans + market comps), funds the land payoff, and sets up the draw schedule. As your GC completes phases, you submit draw requests, inspections happen, funds release. When the certificate of occupancy is issued, the loan converts automatically to the pre-locked permanent terms. No second closing, no second appraisal in most cases.
What this looks like in Washington
Custom construction is common in WA's growth corridors — Snohomish, Skagit, and Whatcom counties to the north; Pierce and Thurston to the south; and the Eastern WA boom in Spokane, Kennewick, and Wenatchee. West-side builds need to plan around winter weather (October–March stretches timelines) and around county-specific permitting that can run 60–120 days on its own. Septic, well, and critical-areas reviews add time in rural WA. Land already owned counts as equity, which is a huge win if you bought before the appreciation curve.
Pros
- • One loan covers everything
- • Lock permanent rate up front
- • Interest-only during construction
- • Land equity counts as down payment
Cons
- • 20% down typical (10% best-case)
- • Licensed GC required for most programs
- • Heavy documentation up front
- • Change orders slow things down
Best for: WA buyers with land (or buying land), a licensed GC, a clear budget, and the patience to build over 9–18 months.
Common Questions
Popular WA markets for Custom Construction
Custom construction in WA's lot-rich growth corridors — Snohomish and Skagit to the north, Pierce and Thurston to the south, plus the Eastern WA boom in Spokane and the Tri-Cities.