Construction Loan in WA State

Asked by Tina, Seattle, WA Sat Jan 30, 2010

We are trying to purchase a near-complete property without certificate of occupancy. The estimated work to be done is a small amount that will take less than a week. We have cash to pay for the construction to complete the house. However, without CO, I understand that lenders doesn't give out conventional mortgage loans for these sales.

I am looking for an all-in-one (rollover or construction-to-permanent) loan in WA, that will convert to conventional 30 year fixed once CO is obtained with one closing cost.

Any recommendations? Thanks!
Does anyone have recommendation for loan programs in WA state

Help the community by answering this question:

+ web reference
Web reference:

Answers

10
The Cascade…, Agent, Issaquah, WA
Sat Jan 30, 2010
Guild Mortgage can help you with this. Frank Hinkley is the contact. More information at this link!
2 votes
Rosejudyy, Home Buyer, South Miami, FL
Mon Sep 19, 2016
There are a number of Lenders that offer Construction loan financing. BBVA Compass has a One Time Close Construction loan. We fund the Construction and Permanent loan in one step. Depending on scenario, we can lend up to 90%. Hope this helps. Please feel free to contact me at my profile if you have any questions.
http://usaconstructionloans.com
0 votes
Teamevergreen, , Seattle, WA
Fri Feb 5, 2010
Tina - we have a loan available that can work for this scenario. We work with a portfilio lender who doesn't underwrite to Fannie Mae and Freddie Mac guidelines. Give us a call to talk through the details. 206.774.7595 - Cathy and Kimberly - Evergreen Home Loans.
0 votes
Keane Ng, Mortgage Broker Or Lender, Renton, WA
Thu Feb 4, 2010
Tina,

Your best bet would probably be Washington Federal Savings who currently still does construction loans and permanent financing.

Before diving in too deep, you'll want to find out what it cost to finish the home. Keep the bids conservative and expect overrages.

Eagle Home Mortgage is also a good source.

I can broker loan transactions to Washington Federal but feel you'll likely be best handled working with them directly. I also have a name and number of a Eagle Home Mortgage loan officer who specializes in construction if you would like his info.
0 votes
Leanne Finlay, Agent, Kirkland, WA
Wed Feb 3, 2010
Hi Tina, I assume you are working with a real estate agent? See if your agent can negotiate permission from seller to hire the work done by licensed contractors a couple of weeks before closing, and have you pay the contractors at closing? If you need the bank financing to pay for the work, you might need to increase your offer price. Be sure your bank appraisal is done and approved before you send someone in to start any work, and be sure your seller is fully prepared to allow work to be done on his property. You might need to deposit extra funds for the work to be done to satisfy seller, or if seller is confident in your choice of lender, then that may not be needed. Each situation is different.

If you're using a competent lender who is used to working with contruction or rehab loans, it seems like it should be a pretty straight forward process for such a small amount of work.

Karen McKnight gave two good lender referrals, who I know to be competent, so start by calling each of them. I know a few more to try as well.

-Leanne
0 votes
Jirius Isaac, Agent, Kenmore, WA
Mon Feb 1, 2010
I am a real estate agent and a loan originator. Yes, the type of loan that you want does exist, but will be hard to obtain. But that is not the main problem. The main problem for you is that any type of construction loan will be at a higher interest rate then a conventional loan. With that in mind, you should try and find a way to finish the house and then get your loan. If you would like to brainstorm with me possible ways to do that, just give me a call at 425-483-6849. Good luck to you otherwise.
0 votes
Karen Mcknig…, Agent, Kirkland, WA
Sun Jan 31, 2010
Quite a few lenders used to do those kinds of loans and with all the changes in brokerage and lending the number of lenders set up for the Construction plus the "take out" loan has gotten much smaller.

I highly recommend you contact Deborah Still with Golf Savings, 206-423-5385. She has been a lender for over 15 years and if she cannot currently do these loans, she could direct you to a good source.

I also recommend Dianne Backus, a manager of the Bellevue office of Washington Federal Savings, 425-641-3530. Washington Federal has always specialized in construction lending and portfolios their loans, so they do loans that "make sense".

Good luck in getting your loan. Please tell the above two lenders that I recommended them if you decide to contact them.

Warm Regards,
Karen
Web Reference:  http://www.karenmcknight.com
0 votes
X, , Kirkland, WA
Sat Jan 30, 2010
Yes you are correct, sorry about that. There is another program called the Fannie Mae Homestyle Renovation program
0 votes
Tina, Home Buyer, Seattle, WA
Sat Jan 30, 2010
FHA 203K is only for properties with certificate of occupancy already obtained, and does not work for this case.
0 votes
X, , Kirkland, WA
Sat Jan 30, 2010
You may wan to try an FHA 203K loan
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more