Ground-Up Construction & Construction Completion Loans
Secure the funds you need to finish (or launch) construction projects from Pacific Northwest Capital Partners. Our clients have seen their projects to completion with our tailored Ground-Up Construction Loans and Construction Completion Loans across Washington State.
Our lending solutions cater to your needs to ensure seamless progress from start to finish. To learn more about our tailored loan programs or to start your application process, contact us at (425) 677-4107.
How Do These Loans Work?
Ground-Up Construction Loans
Ground-up construction loans are a specialized financial tool that provides the crucial capital required to initiate your ambitious business project. It could be a state-of-the-art commercial property, a residential development, a condo, or a groundbreaking office space. At Pacific Northwest Capital Partners, we’ve facilitated a number of ventures, assisting entrepreneurs, general contractors, developers, and real estate investors in completing their projects.
Past Projects
$1,290,000– Queen Anne Rehab Loan: PNWCP provided 100% of the purchase price.
$2,550,000 – Luxury Homes Ground-Up Construction Project: Went into supporting the development of three magnificent residences with prime golf course frontage in Suncadia.
$690,000.00 – Olympia Land Purchase: We supported the acquisition of 6 acres zoned for multifamily use adjacent to Interstate 5 in Olympia.
Construction Completion Loans
These are designed to bridge the gap between the final stages of a project and its successful completion. They offer borrowers the necessary financial resources to cover remaining construction expenses, finalize last-minute touches, and ensure that the project reaches its full potential without any financial constraints.
Past Projects
$210,000.00– Aberdeen 12-Unit Apartment Complex Refinance: Our loan amount included $35,000 for building renovations in Aberdeen, which enhanced the value and functionality of the property.
$263,000.00 – Tacoma Commercial Rehab/Construction Completion Project: We supported the development of 10 apartments upstairs and three commercial spaces downstairs in Tacoma.
$109,000 – Bank-Owned Marysville Single-Family Residence: We funded 100% of the purchase price, closing costs, and $14,000 in rehab/construction costs. PNWCP took the first position on the subject property, enabling the completion of the flip without any out-of-pocket expenses.
What Types of Construction Projects Are Considered?
If your project has a business purpose and isn’t an owner-occupied primary residence, chances are good that it’s the kind of project we can support with hard money loans.
Why Choose Pacific Northwest Capital Partners for Ground-Up Construction & Construction Completion Loans?
Hard Money Loans
1. Flexibility in approval: Hard money types of loans often prioritize the value of the property over the borrower’s credit score. This means that borrowers with unique or complex financial situations have a higher chance of approval.
2. Quick access to construction funds: At PNWCP, our streamlined loan processes ensure efficient funding and minimal delays.
3. Tailored financing solutions: We understand that each project is unique. Borrowers get a construction financing package tailored to their specific needs.
Interest Only Payments
1. Lower initial payments: Interest-only payments allow borrowers to pay solely the interest accrued on the loan for a specified period. An interest-only draw schedule will result in lower monthly payments than traditional principal and interest rate payments or conventional mortgages.
2. Flexibility in budgeting: They have a predictable payment structure during the interest-only period. Borrowers can budget effectively without sudden fluctuations.
3. Enhanced cash flow: By paying only the interest option, borrowers can free up cash flow during the initial stages of the project.
Flexible Loan Terms
1. Adaptability to changing circumstances: Borrowers can adapt to unforeseen changes or opportunities during their construction with flexible terms.
2. Customized repayment structures: Borrowers can tailor repayment schedules to align with their project milestones and cash flow.
3. Mitigated financial pressure: Our loans can bring breathing room to your project, especially during project phases that might experience fluctuations in revenue or unexpected expenses.
Contact Us About Ground-up Construction & Construction Completion Loans
Ready to take the next step in your construction project? Do you have any questions about our tailored loan options? We’re here to help! Call us at (425) 677-4107 or fill out the contact form below to speak with our expert team.
Frequently Asked Questions
Why are construction loans hard to get?
Traditional loans require very good credit, cash on hand, and experience. They are also time consuming and can take months to be approved. Hard money or private loans are much easier to obtain.
What kind of credit score do you need for a construction loan?
Typically a score of 720 or above is required for traditional construction loans. Private loans are not credit grade based.
What is the difference between a mortgage and a new construction loan?
A construction loan is a mortgage. However, funds are drawn to the borrower as work progresses.
What are the disadvantages of a construction loan?
With a construction loan you may run the risk of cost overruns and delays if you have not done your homework.
Is it better to pay off land before building?
Most lenders require the land to be free and clear, or close to it prior to funding a construction loan.
Can you convert a construction loan into a mortgage?
Yes, in fact many construction loans are converted into traditional mortgages when the home is completed.
What happens at the end of a construction loan?
When the home is completed it is either sold to pay off the loan or converted into a permanent loan.
What is a ground up construction loan?
A ground up construction loan is simply a construction loan from start to finish.
How do you build a house from the ground up?
Consult a professional lender.
What is the difference between completion guaranty and repayment guarantee?
A completion guarantee indicates the home will be completed within a certain timeline. A repayment guarantee simply guarantees the loan will be repaid typically within a certain timeline.
Is it cheaper to build or buy a house?
If qualified, in most cases it is more cost effective to build.
Is it a good idea to get a construction loan?
There are many advantages to a construction loan. Foremost, getting what you want in terms of design.
What is the difference between a construction loan and a regular loan?
A construction loan is a mortgage. However, funds are drawn to the borrower as work progresses.
How much interest do you get on a construction loan?
If qualified, in most cases it is more cost effective to build.
Are construction loan rates higher than mortgage rates?
Construction loan rates are typically just a bit higher than the average 30 year fixed rate as a construction loan can be a bit riskier for the lender.
How do you finance a teardown and rebuild?
Rehab loans and teardowns are similar to construction loans in terms of finance.
Is it cheaper to renovate or demolish and rebuild?
It depends on the condition of the home and scope of work. Your builder/contractor can tell you if it’s better to teardown and start over, or renovate.