Washington New Construction Loans
You’ve worked hard to get your business to the level that it’s at. If you don’t want to rent anymore and are ready to build a property or you want to expand the one you already have, it can help your business move forward. Even if you’re just starting out, it’s highly desirable to get a new property built.
Real estate construction or improvements can be costly. You may not have tens of thousands of dollars to throw at a new construction project in Washington. This is when it’s time to explore a commercial construction loan.
At Delancey Street, we’re here to help you with your financing. Our money lenders will make it easy for you to build in Seattle, Tacoma, Spokane, or anywhere else in the state.
Seek the Financial Loan That You Need
It’s important to get the funding you need. More importantly, you need to get a loan that will work for you and the budget that you have in place. You will have a lot to buy.
- Land development
Think about what kind of project you want funding for. You can build from the ground up or renovate existing space. Either option will require knowing how much money you actually need. Only then can you start to explore the financial loans that are available.
Why Washington New Construction Loans are Important
You need to understand how a Washington new construction loan is going to vary from a traditional commercial mortgage. Banks will often provide commercial mortgages, requiring you to have good credit. The process can be overwhelming, especially as they start to request additional information from you. They will provide the full money upfront and provide you with financing over the course of a 10-year period.
New construction loans in Washington will provide you with the funding in a way that works better for you. The funds are broken out over time based on the schedule that you have in place. You may get some funds to start the project and more funds when each step is completed, such as the building being framed and floors being installed.
An inspector will confirm the work is finished before allowing for the next financial draw. You only pay interest as the money has been released to you.
Once the project is complete, you have options to pay it off. You can choose to pay the amount in full or use the property as collateral while making affordable monthly payments.
Exploring New Construction Loans
As you explore new construction loans throughout Washington, you will want to look at the interest rates, the fees, as well as the down payment that is required of you. Interest rates can vary based on the lender as well as the credit score that you have as a business. This will impact what the loan will ultimately cost you.
Fee amounts and types will vary by lender. You may have to pay guarantee, processing, project review, and fund control fees. Additionally, the down payment is due to a commercial construction loan being high-risk. A 10 to 30% down payment is typically required of most projects.
The good news is that you don’t have to do all of the research on your own. Commercial lenders will evaluate your eligibility and show you what their offers are.
At Delancey Street, we look forward to helping you every step of the way. Contact us today to learn more about new construction loans in Washington.