What this means for a Seattle construction loan
Seattle permitted 4,366 new homes in 2025, 63.6% below the 2021 peak of 11,980.
Small multifamily is growing: permits for 2–4 unit homes went from 700 in 2020 to 865 in 2025, a project size well suited to private construction financing.
That is 5.6 new homes per 1,000 residents, the 45th most active of the 141 cities B-Line Capital covers by this measure.
Statewide rent increase cap
Washington's HB 1217, signed May 7, 2025, caps annual rent increases for most residential tenancies at 7% plus inflation or 10%, whichever is lower. Rent can't be raised during the first 12 months of a tenancy, increases require 90 days' notice, and rent can reset to market when a tenancy ends. Homes in their first 12 years after construction are exempt.
For your loan: New homes are exempt for their first 12 years, so a newly built rental can set and raise rents to market during that period.
Sources: Washington State Standard, May 7, 2025; National Low Income Housing Coalition, June 16, 2025
Four to six homes allowed on residential lots
Since June 30, 2025, Seattle allows at least four homes on every residential lot, or six within a quarter-mile walk of a light rail or RapidRide stop or when two units are affordable. The permanent version of the rules (Council Bill 120993) took effect January 21, 2026. Single-family lots can now pencil as small multifamily or townhome projects.
For your loan: Lenders underwrite to the units you can permit, so bring a zoning confirmation and, if you plan to sell units separately, a unit lot subdivision plan.
Sources: City of Seattle, Council Bill 120993 (signed legislation); Seattle Building Connections, July 7, 2025
Construction Loans program details
| Loan purpose | New construction: build-ready infill, teardowns, and spec homes; not tract homes or subdivisions of 10+ homes |
|---|---|
| Interest rate | As low as 9.99%1 |
| Loan amount | $300K to $10MM |
| Term | 12 or 18 months; mid-construction options available17 |
| Borrower | Individual or entity |
| Experience | Based on the prior 36 months |
| Maximum loan-to-value | 65% to 70%7 |
| Maximum loan-to-cost | 80% to 85%8 |
| LTV vs. LTC | Whichever calculation works best for your project |
| Construction financing | Up to 100% of construction costs |
| Land | Land acquisition assistance available10 |
| Property types | Single-family, detached ADUs (DADUs), 2–4 units, 5–20 unit multifamily, mixed-use, townhouses, condos15 |
How it works
- Request a quote. Tell us about the Seattle property, your plan, and the loan amount you need. It takes a few minutes.
- Compare offers. We shop the deal across private lenders, family offices, and commercial capital sources and bring you up to three offers.
- Close and fund. We coordinate documents, valuation, and title with the lender you choose through closing.
Questions about construction loans in Seattle
How many new homes are being built in Seattle?
Seattle permitted 4,366 new housing units in 2025, according to the Census Bureau's Building Permits Survey; 3,033 were in buildings with five or more units.
Is there a limit on rent increases in Seattle?
Yes. Under Washington's HB 1217, annual rent increases for most residential tenancies are capped at 7% plus inflation or 10%, whichever is lower, and rent can't be raised in the first 12 months of a tenancy. Homes in their first 12 years after construction are exempt.
How many homes can I build on a residential lot in Seattle?
At least four, or six within a quarter-mile walk of a light rail or RapidRide stop or when two of the units are affordable. These rules took effect June 30, 2025, and the permanent version (Council Bill 120993) took effect January 21, 2026.
What kinds of construction projects qualify?
Build-ready infill lots, teardowns, and spec homes, including single-family homes with detached ADUs, townhouses, condos, 2–4 unit and 5–20 unit multifamily, and mixed-use. Tract homes and subdivisions of 10 or more homes are not eligible.
How much of the project can be financed?
Up to 80–85% of total cost or 65–70% of completed value, whichever works better for your project, with up to 100% of construction costs funded.
How are construction loan funds disbursed?
Construction funds are released in draws as work is completed and inspected, so you pay interest only on what has been drawn.
Can I get financing partway through construction?
Yes. Mid-construction options are available for projects that have already started.
What experience do I need?
Eligibility is based on your construction activity over the prior 36 months.
Does B-Line Capital lend directly?
No. B-Line Capital is a private money broker. It compares offers from multiple private lenders, family offices, and commercial capital sources so you can choose the best rate and terms.
What fees are involved?
B-Line Capital's broker fee typically ranges from 0.5 to 2 points depending on deal size and complexity. Fees are disclosed on your closing statement and are not charged until your loan funds.
How long does it take to close in Seattle?
Timelines depend on the lender, the deal's complexity, and how quickly documents come together. Private financing generally moves faster than a bank loan; ask your B-Line Capital contact for a timeline specific to your Seattle project.
How do I get started with a construction loan in Seattle?
Request a quote to compare offers from up to three lenders, or call (206) 949-3416 to talk with the team.
