Builder Spec & Model Home Construction Loans in Washington
Builder Spec Loan in Washington
Washington’s residential construction market stretches from Seattle-Puget Sound Metro (King and Snohomish to smaller communities across the state. Normandy’s spec home construction loan program serves borrowers throughout this range — wherever your project is located.
Spec construction is active across Washington’s suburban corridors — Snohomish County north of Seattle, Pierce County in the Tacoma area, and Eastern Washington’s Spokane and Tri-Cities markets show ongoing spec building activity.
Loan details: Loan amounts from $95,000 to $5,000,000. Up to 65% of appraised value or 75% loan to cost, whichever is less. 12-month construction term; extensions available. Interest-only on funds advanced. Limited income, self-employed, and full doc programs available. No builder license required. Foreign nationals may apply.
For a rate quote on spec home financing in Washington, call 800-390-7536 or visit https://normandy.com/builder-model-spec-loan/. Full program list: https://normandy.com/.
General Guidelines*
- Loan amounts from $95,000 to $5,000,000
- Loan amounts up to 65%* of the appraised value or 75% loan to cost, whichever is less.
- Cross collateralization considered on other properties for maximum or greater loan amounts, loan to values, or loan to cost
- No minimum FICO required for consideration
- Loans are available to Borrowers with excellent to less than perfect credit (subject to underwriting)
- Limited income, self-employed, and full income documentation programs available
- Land purchase may be included in the construction loan
- Deal directly with the Loan Officer/Underwriter
- Foreign Nationals are eligible for this program
- Fast pre-qualification, typically within 3 to 5 business days, closing typically within 30 days (fast track closings in 14 +/- days available if certain criteria is met)
- Flexible draw schedules
- Do not need to be a licensed Builder to qualify
- New Builders will be considered
- 1 to 4 family homes. For 5+ units, refer to Commercial Construction
- 12 month construction term with extensions available
- Interest only payments based on funds advanced
*All rates and terms subject to change without notice
Rates and Fees
(Based on credit score, income, savings and LTV)
- Rates: Prime Rate plus 2.95% to 3.95%
- Loan Fee: 1.50% to 2.00%
- Application Fee: $495 (Inspection fee may apply)
- Fast Track Closing Fee: $1,250
- Underwriting Fee: $495
*65% maximum loan to value on loan amounts up to $1,000,000, 60% maximum loan to value on loan amounts over $1,000,000
Washington Construction Market & Regulatory Overview
Washington State’s construction market is among the most active in the country. Tech-sector employment in the Seattle and Eastside markets, combined with Puget Sound population growth, continues to drive strong residential construction demand.
Building Code: Washington State Building Code (WSBC) and Washington State Energy Code, both based on the International Residential Code.
Permitting: Permits are administered by local city and county jurisdictions. All residential construction must comply with both the WSBC and Washington State Energy Code.
Key construction considerations in Washington include heavy rainfall and moisture management requirements in Western Washington, statewide seismic hazard, and cold winters with wind events in Eastern Washington. Normandy’s underwriting team works directly with borrowers — you deal with the loan officer and underwriter, not a call center.
Contractor Licensing in Washington
Washington State requires all contractors to be licensed and bonded through the Department of Labor and Industries (L&I). Electrical, plumbing, and HVAC trades require separate L&I endorsements.
Owner-Builder Note: Washington allows owner-builders to act as their own GC for a primary residence, provided permits are obtained and no more than one owner-built home is constructed within a 24-month period.
Loans Available in the Following States
- Alaska (AK)
- Alabama (AL)
- California (CA)
- Colorado (CO)
- Connecticut (CT)
- Delaware (DE)
- Florida (FL)
- Georgia (GA)
- Hawaii (HI)
- Iowa (IA)
- Idaho (ID)
- Indiana (IN)
- Kansas (KS)
- Kentucky (KY)
- Massachusetts (MA)
- Maryland (MD)
- Maine (ME)
- Michigan (MI)
- Missouri (MO)
- Mississippi (MS)
- Montana (MT)
- North Carolina (NC)
- Nebraska (NE)
- New Jersey (NJ)
- New Mexico (NM)
- New York (NY)
- Ohio (OH)
- Oklahoma (OK)
- Oregon (OR)
- Pennsylvania (PA)
- Rhode Island (RI)
- South Carolina (SC)
- Tennessee (TN)
- Utah (UT)
- Virginia (VA)
- Washington (WA)
- West Virginia (WV)
- Wyoming (WY)
Frequently Asked Questions — Builder Spec Loan in Washington
Q: What is a spec home construction loan in Washington?
A: A spec home construction loan in Washington is a business loan for building a residential property for resale without a committed end buyer at the start. Normandy finances through draw disbursements, with interest-only payments on advanced funds during the 12-month construction term.
Q: What does spec home financing cover in Washington?
A: Spec home financing in Washington covers 1–4 family residential construction. Loan amounts up to 65% of appraised value or 75% of loan to cost. Land purchase may be included. Cross-collateralization on other builder properties is considered for greater loan amounts.
Q: Do I need a contractor license for builder construction financing in Washington?
A: No. A licensed builder designation is not required for Normandy’s builder construction financing in Washington. New builders are considered. Self-employed borrowers and those with limited income documentation may qualify through alternative programs.
Q: What is a builder development loan in Washington?
A: A builder development loan in Washington is construction financing for a builder or investor constructing a 1–4 family property for sale. Normandy’s program features flexible draws, no minimum FICO for consideration, and loan amounts from $95,000 to $5,000,000.
Q: How does model home financing work in Washington?
A: Model home financing in Washington is structured as a 12-month construction loan. Draw disbursements at milestones fund the build. Cross-collateralization on other builder-owned properties may be available to support the loan. Call 800-390-7536 for a rate quote.