What's being built
Most of the construction inquiries we see are infill: a teardown replaced by two or three townhomes, a backyard cottage behind an existing rental, or a small multi-unit building on a corner lot. Washington's middle-housing law (HB 1110, passed in 2023) requires larger cities to allow more homes per residential lot, and Seattle has been updating its zoning to match. Unit lot subdivisions, which let townhomes be sold individually, are a common Seattle strategy.
Seattle-specific planning points
- Permit review. New construction runs through the Seattle Department of Construction and Inspections and can take months. Lenders will ask where you are in the queue.
- Trees. Seattle's tree protection rules, updated in 2023, can affect site layout and add arborist reports to your soft costs.
- Environmentally critical areas. Steep slopes, landslide-prone ground and wetlands trigger extra review and engineering. Hilly neighborhoods see this often.
- Utilities. Water, sewer and electrical service upgrades are easy to underestimate on multi-unit sites.
A strong construction file
Plans and permit status, a line-item budget with a contingency, your general contractor's background, a realistic schedule, and an exit: sale of finished units, or a refinance into a DSCR rental loan if you're keeping them. Need to secure the lot before construction financing is ready? Ask about a bridge loan for the land.
Renovating rather than building from scratch? See fix-and-flip loans.