Residential Construction
General Guidelines
| Purpose | To finance the vertical speculative (“spec”) construction loans for builders in the Puget Sound region; land acquisition and development loans to developers or builders with whom the vertical construction will be retained by the bank; condominium construction as well as select condominium conversion opportunities; zero lot line “in city” construction. |
| Loan Size | $1,000,000 to $25,000,000 |
| Term | 12 months (or as appropriate for the transaction) |
| Extensions | As appropriate and negotiated |
| Interest Rate | Typically prime-based adjusted monthly upon change |
| Loan to Value Ratio | Typical spec construction |
| Liability | Full recourse |
| Third Party Reports | Appraisal, draw inspections, other depending on project type |
| Loan Approval | Construction loans approved locally—quick decisions, fast closings |
| Commitment | 30-45 days, depending upon the appraisal turnaround and complete package |
| Additional Benefits | Local decision making, flexible underwriting, internal operations for draws and disbursals |
