Construction Loan Program Guidelines
WADOT Capital Inc. is primarily a LTV driven lender. Maximum LTV is typically 65%, but on cash down purchases, the LTV may be increased to 70%. Additional collateral may by used under certain circumstances to offset LTV requirements.
Projected/at completion values are analyzed, but not typically used when calculating LTV’s. WADOT places significant weight in the acquisition cost of the property, plus estimated repair/completion costs, when determining the current value of the project. These “costs” are generally used as the value of the collateral when calculating the LTV, making loan to cost and loan to value
potentially one in the same.
Pricing / Terms
- Term - Typically 1 to 2 years, interest only payments
- Rate - Typically 10.5% to 12.9%
- Fee - Fee is based on contract term
- 4% for 2 years
- 3.5% for 1 year
- 3% for 6 months
- Other fees charged by WADOT through closing (NO UPFRONT FEES) - $275 document review fee, $475 underwriting fee, $150 - $300 inspection fee, $24 UCC filing fee, and $50 tax service fee per parcel.
- Borrower responsible for all broker and/or 3rd party fees/costs
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Loan Purpose
Any Investment or Business Purpose Loan
Property Types
All property types considered
Lending Areas
Urban areas preferred, but no location within Washington, Oregon or Idaho excluded
Borrower Types
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Individual
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Trust
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LLC
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Corporation
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Estate
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Partnership
Property Condition
Any condition
Guidelines
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Credit – No requirements
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Income – No requirements, borrower must have a realistic plan for repayment
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Prepayment Penalty – NONE
Project Types
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