Construction financing,
explained plainly
We don’t lend money — we make your lender’s job easy. Budgets, draw schedules and documentation that keep banks comfortable and projects moving.
How clients typically
fund each build
Construction-to-permanent loans are the standard: one closing, interest-only payments during construction, automatic conversion to a mortgage at completion. We design to your pre-approval so there are no surprises.
HELOC or cash-out refinance against your existing home is the most common path. Washington’s HB 1337 also made ADUs more finance-friendly by allowing condo-style sales — see our ADU financing page.
Commercial construction loans with draw schedules, SBA 504/7(a) for owner-occupied buildings, or landlord-funded TI allowances. We coordinate inspections and lien releases per draw.
Development and construction financing for builders and investors — we work within your capital stack and report progress in the format your lender expects.
Smaller projects are often funded by HELOC, renovation loans (FHA 203k, HomeStyle) or savings. Fixed-scope contracts keep these simple.
Tight budget? We can phase larger projects — shell now, finishes later — so financing stays manageable without compromising the structure.
Financing FAQ
Does ABM Construction provide financing directly?
No. ABM Construction is a contractor, not a lender. We build the project and the budget documentation your lender needs — and we work with your bank, credit union or specialty lender throughout the draw process.
What loans work for a custom home in Washington?
Most clients use a construction-to-permanent loan: one closing, interest-only draws during the build, then conversion to a standard mortgage. Local credit unions and national construction lenders both serve the Puget Sound market.
Can I finance an ADU with my home equity?
Yes — HELOCs and cash-out refinances are the most common ADU funding sources in Washington. Some lenders also offer ADU-specific products that factor projected rental income into qualification.
Do commercial projects use different financing?
Typically yes: commercial construction draws, SBA 504/7(a) programs for owner-occupied buildings, or tenant-improvement allowances negotiated into the lease. We coordinate draw schedules and inspections with your lender.
When in the process do I need financing in place?
Before we finalize the construction contract. A pre-approval letter lets us design to a real budget instead of guessing — which saves redesign fees later.