Construction Loans for
Custom Homes in Washington

Financing a custom home in Washington is not the same as financing an existing home. Construction loans fund the build in stages—draws tied to completed work—and convert to permanent financing when construction finishes. Lenders require budgets, schedules, and inspection documentation that conventional mortgages never ask for.

Benchmark Custom Homes coordinates with regional and national lenders on construction-loan products for primary residences, second homes, and resort properties across Central Washington. This guide explains loan structures and how we keep lender requirements aligned with field progress.

One-close vs two-close construction loans

A one-close (construction-to-permanent) loan combines construction and permanent financing in a single closing. You pay closing costs once; the loan converts when the home is complete and passes final inspection.

A two-close loan separates construction financing from permanent mortgage. Construction closes first; you refinance into a permanent loan after completion. Two-close can offer flexibility on rate lock timing but doubles closing costs.

• One-close: single closing, rate lock strategy varies by lender
• Two-close: separate construction and permanent loans
• Owner-builder and land-already-owned scenarios affect down payment
• Second-home and resort properties may require different lender products

How draw inspections work during construction

Lenders release funds in draws—typically at foundation, framing, mechanical rough-in, insulation, and final. Each draw requires an inspection confirming the work matches the approved budget line items.

Benchmark maintains budget and schedule visibility throughout construction so draw requests do not delay field progress. Our project managers document completed milestones for lender inspectors on the day work is ready—not a week later.

What lenders need from your builder

Before construction starts, lenders typically require a fixed-price or cost-plus contract, detailed construction budget, build schedule, builder license verification, and insurance certificates. During construction, they require draw inspection reports and change-order documentation for any scope shifts.

We provide lender-ready documentation as part of pre-construction—not as an add-on when the loan officer asks for it mid-build.

• Detailed line-item budget tied to construction schedule
• Washington contractor license and insurance certificates
• Draw-ready milestone documentation and photo records
• Change-order process for scope adjustments with lender notification

Why Central Washington owners choose Benchmark

• 30+ years as a licensed gc
• 98% client referral rate
• Six-year structural and one-year full coverage warranty
• Budget, schedule, and photos available throughout construction

Continue reading

Common questions