Build your dream home in Spokane with flexible financing options tailored to construction projects.
A construction loan is short-term financing that covers building costs. Unlike traditional mortgages, funds disburse in stages as construction progresses, then convert to a permanent mortgage upon completion.
Construction loans are ideal for:
Construction loans come in two main structures. One-time close (OTC) combines construction and permanent financing in a single closing, while two-time close splits them into separate closings.
A single loan that covers construction and automatically becomes your permanent mortgage. You lock your rate from day one with minimal paperwork.
Separate closings for construction and permanent financing. Allows shopping for rates after construction starts, but costs more and involves two sets of closing costs.
| Feature | One-Time Close | Two-Time Close |
|---|---|---|
| Number of Closings | 1 | 2 |
| Closing Costs | One set (lower total) | Two sets (higher total) |
| Rate Lock | Locked from day one | Locked at second closing |
| Permanent Rate Certainty | Known before construction | Subject to rate changes |
| Lender Flexibility | Same lender throughout | Can shop for permanent lender |
| Timeline | Simpler, faster process | More complex underwriting |
Traditional financing for buyers with strong credit and down payments. Offers competitive rates and flexible terms.
Lower down payments (3.5%+) and more flexible credit than conventional. Available as one-time close, perfect for first-time builders.
Veterans can build with zero down payment and no PMI. VA OTC combines single closing, rate lock, and 100% financing in one powerful loan.
Note: While down payment is $0, closing costs (title, escrow, VA funding fee) still apply.
Typical construction takes 6-9 months from planning to completion, with funds disbursed in stages as work progresses.
Finalize plans, get permits, and complete loan underwriting.
Foundation poured, first draw issued. Lender inspects progress.
Frame erected, electrical and plumbing installed. Multiple draws continue.
Final work, inspections, and final draw. OTC loans convert to permanent mortgage automatically.
Build your vision with control over quality and decisions.
Finance building on land you already own in Spokane.
Demolish and rebuild on existing Spokane properties.
Zero down, single close, no PMI, competitive rates locked from day one.
Draws disburse funds as work progresses. Interest may be deferred or paid monthly. Once construction finishes, the loan converts to a permanent mortgage with regular principal and interest payments.
Conventional: 10-20% down. FHA: as little as 3.5% down. VA: zero down. Your lender will discuss options for your situation.
Yes. OTC locks your rate at initial closing and it carries through to permanent mortgage. Two-time close loans lock the permanent rate at second closing.
Your lender works with you to manage delays and may offer extension options. Communicate early if delays occur.
Most lenders require a licensed, insured contractor. You can hire one to manage while you oversee decisions. Owner-builder scenarios vary—discuss with your loan officer.
Yes. VA-eligible borrowers finance 100% of construction costs with zero down and no PMI. This is a powerful veteran benefit worth exploring.
Whether you're interested in conventional, FHA, or VA construction financing, we're here to guide you through the process. Let's explore your construction loan options in Spokane.
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