Question 1

Do you lend across all of Washington?

Accepted Answer

Yes, statewide, on business-purpose loans only. The Consumer Loan Act exempts any person making a loan primarily for business, commercial, or agricultural purposes unless the loan is secured by a lien on the borrower's primary dwelling (RCW 31.04.025(4)(e)). The carve-back is the borrower's own home, not "a dwelling," so a loan to an investor or an LLC on non-owner-occupied one to four family property sits outside it. The Mortgage Broker Practices Act works the same way, because it defines a residential mortgage loan as one primarily for personal, family, or household use (RCW 19.146.010(19)). Purpose is a facts-and-circumstances question, so we document it on every file. We lend in Seattle, Tacoma, Spokane, Vancouver WA and the rest of the state. See loan programs or talk to us. Subject to underwriting.

Question 2

How long does a Washington foreclosure actually take?

Accepted Answer

At least 190 days from the date of default, and that floor is in the statute. Washington is a deed of trust state that forecloses non-judicially under chapter 61.24 RCW. Written notice of default has to go out at least 30 days before a notice of sale is recorded, and the notice of trustee's sale is recorded and mailed at least 90 days before the sale, then published twice, once between the 35th and 28th day and once between the 14th and 7th day. On top of all that, RCW 61.24.040(12) says the sale cannot take place less than 190 days from the date of default, and that applies to commercial loans too. A borrower can cure up to 11 days before the sale date. So distressed inventory here is visible months ahead and can still disappear in the last week and a half. After a trustee's sale there is no right of redemption (RCW 61.24.050(1)), which is the other half of what makes the calendar workable.

Question 3

Does a business-purpose loan skip the consumer foreclosure machinery?

Accepted Answer

Yes, and Washington says so in two places. RCW 61.24.005(6) defines a commercial loan as a loan that is not made primarily for personal, family, or household purposes, so a business-purpose investor loan is a commercial loan under this chapter even on one to four family collateral. RCW 61.24.031(7)(a) then excludes deeds of trust securing a commercial loan from the pre-foreclosure notice and meet-and-confer section, which is what would otherwise push the notice track from 90 days to 120. Foreclosure Fairness Act mediation does not reach these loans either: RCW 61.24.165(2) excludes commercial loans and separately excludes property vested in a partnership, corporation, or limited liability company at the time of the notice of default. Entity-vested investor property is excluded twice over. None of that is a promise about your file, and how a lender proceeds is a matter for counsel.

Question 4

What does Washington's real estate excise tax cost on an exit?

Accepted Answer

REET is graduated, and it is the line flat-tax states do not have. The state rates in effect since January 1, 2023 are 1.10% on the portion up to $525,000, 1.28% from there to $1,525,000, 2.75% up to $3,025,000, and 3.00% above that, plus a $5 state technology fee per transfer. Cities and counties may add 0.25%, and jurisdictions planning under the Growth Management Act may add another 0.25%, so a 0.50% local stack is common in Puget Sound. Worked on an $800,000 sale in a full 0.50% city: 1.10% on the first $525,000 is $5,775, 1.28% on the next $275,000 is $3,520, so state REET is $9,295, plus $4,000 local, roughly $13,295, about 1.66% of the price. Two cautions. The thresholds are adjusted every fourth year and 2026 is an adjustment year, so re-check the Department of Revenue page before you model a 2027 exit, and confirm your specific city's local rate on DOR's tables. We have not verified which side of the closing table bears REET by custom, so treat the allocation as a contract question for your attorney.

Question 5

Can a Washington borrower raise usury as a defense?

Accepted Answer

Not on a business-purpose loan. RCW 19.52.020(1) sets the general ceiling at the higher of 12% per annum or four percentage points above the average 26-week Treasury bill rate from the auction month before the rate was set. RCW 19.52.080 then removes that defense from this kind of transaction twice: corporations, trusts, associations, partnerships and joint ventures may not plead usury at all, and individuals may not plead it if the transaction was primarily for agricultural, commercial, investment, or business purposes. The express carve-back is a consumer transaction of any amount, meaning one primarily for personal, family, or household purposes. That is exactly the line we underwrite to. Nothing here is a statement about what any USAM loan is priced at, and pricing is set in underwriting.

Question 6

Who closes a deal in Washington, an attorney or an escrow company?

Accepted Answer

Escrow. Washington is not an attorney-closing state. Escrow agents are licensed under the Escrow Agent Registration Act, chapter 18.44 RCW, and RCW 18.44.071 requires every escrow transaction to be supervised by a licensed escrow officer. Closing documents are typically prepared by Limited Practice Officers licensed by the Washington Supreme Court under Admission to Practice Rule 12, which is a credential most states do not have. Escrow agents carry a $1 million fidelity bond, a $50,000 errors-and-omissions minimum, and a $10,000 surety bond. What we will not tell you is who customarily pays for the owner's policy or how escrow fees split, because we have not verified it and you should not budget off a guess. Ask the escrow company for a written estimate on your specific transaction.

Question 7

Does Washington really have no income tax?

Accepted Answer

Not flatly, and the answer changed in 2026. Washington still has no income tax on the money an investor earns today, no corporate income tax, and no capital gains excise tax on real estate transferred by deed. But SB 6346, signed March 30, 2026 as chapter 238, Laws of 2026, establishes a 9.9% tax on Washington income above a $1,000,000 standard deduction, indexed every two years, for tax years beginning January 1, 2028 with first returns due in 2029. The base is federal AGI with adjustments and expressly reaches pass-through K-1 income from S corporations and partnerships, Washington-source business and rental income, and net Washington long-term capital gains. A constitutional challenge was filed April 9, 2026 in Klickitat County Superior Court, so the law is being litigated. Re-check the status before you build it into a hold model, and take your own position to a Washington CPA.

Question 8

How do Washington property taxes work for an investor?

Accepted Answer

Full value, no cap, and no homestead relief shifting the burden. RCW 84.40.030(1) requires all property to be valued at 100% of its true and fair value and assessed on the same basis. There is no assessment-increase cap and no general homestead exemption, so an investor and an owner-occupant face the same standard on the same parcel. One thing to get right: the familiar 1% figure is a levy limit on taxing districts, not a cap on your bill. RCW 84.55.010 limits a district's regular levy growth to a limit factor that RCW 84.55.005(2) sets at the lesser of 101% or 100% plus inflation, but an individual bill can still rise faster when values shift between parcels or voters approve levies. To appeal, petition the county board of equalization by July 1 of the assessment year, or within 30 days after the value-change notice was sent, or within a county-set window of up to 60 days, whichever is later. Counties set their own windows, so confirm yours.

Question 9

What credit score do I need to borrow in Washington?

Accepted Answer

It depends entirely on the program. On our asset-based loans, meaning fix and flip, bridge, and ground up construction, there is no minimum score. We run credit, but it carries far less weight than it would at a bank, and weaker credit is usually answered with lower leverage rather than a decline. DSCR and bank statement loans start at 640, conventional investment starts at 580, and transactional funding runs with no credit check at all. There is no hard pull to open a Washington file. Subject to underwriting.

Question 10

What is the smallest loan you will write in Washington?

Accepted Answer

$100,000 on most residential programs. Fix and flip, DSCR, and bank statement loans all start there. Portfolio loans start at $500,000 across five or more properties, and SBA starts at $350,000. At the top, fix and flip and construction run to $5,000,000, DSCR and bank statement to $3,000,000, and commercial bridge to $10,000,000. Check the floor against your own submarket before you tie up a contract; the metro pages carry the pricing detail. Subject to underwriting.

Question 11

How much do I have to put down on a Washington deal?

Accepted Answer

Anywhere from nothing to 30%, depending on the program. Fix and flip funds up to 90% of purchase plus up to 100% of rehab, so on a $600,000 purchase that is $540,000 from us and $60,000 from you (600,000 x 90% = 540,000). DSCR and conventional investment run up to 80% LTV, commercial bridge up to 75%, construction up to 70% of value and 85% of cost, and SBA finances up to 90%. Transactional funding covers up to 100% of the A-to-B purchase. Subject to underwriting.

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