Westar Funding

About Westar Funding

Westar Funding is private lender headquartered in Mukilteo, WA. They offer loans in Washington, Oregon, and Idaho. They provide commercial loans, short term loans, hard money construction loans, and fix-and-flip loans. They offer loan amounts up to $1,500,000 with a maximum LTV of 65% and rates ranging between 11% and 15%. Their loan guidelines do not require a minimum credit score. They make loans on the following property types: single family residences, multi-family units, apartments, offices, retail storefronts, mixed use spaces, warehouses, industrial facilities, and undeveloped land.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Mixed Use, Warehouse, Industrial, Land

Areas Served: WA, OR, ID

Lending Guidelines for Westar Funding

Below are the general loan guidelines published on the Westar Funding website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Westar Funding.

Loan Example 1

Jonathan takes a fix-and-flip loan from Westar Funding in order to renovate a property to flip in Portland, OR. The sales price of the house is $180,000. The terms of the loan include a 55% loan to value (LTV), so he must contribute 45% of the price as cash at closing, making the principle note amount $99,000. The terms of the loan also include a four point origination fee that is to be paid at the closing and a 6 month, interest-only note with a 14% rate of interest.

By the terms of the loan, Jonathan will need to pay a $3,960 origination fee in addition to 45% of the sales price, or $81,000, based on the 55% LTV. Once the deal closes, he will pay Westar Funding $1,155 in monthly interest fees, or 14% multiplied times $99,000 divided by 12 months in the year. If Jonathan sells the property for $225,000 after 6 months, he would then make a gross profit of $34,110 after subtracting the principle of $99,000, the money contributed at closing of $81,000, the origination points of $3,960, and the total interest payments of $6,930. This gross profit does not include renovation costs.

Loan Example 2

Alberta takes out a private money loan from Westar Funding in order to remodel a townhome to re-sell in Portland, OR. The loan has the following parameters:

a) A $260,000 sales price, b) a 50% loan-to-value (LTV), c) a 6 month term, d) a 12% interest rate, and e) a 1% origination fee.

After the rehab project is finished, if Alberta sells the property for $325,000, the outcome would be as follows:

$325,000 sales price
- $130,000 loan principle (50% LTV)
- $130,000 down payment (50% on 50% LTV)
- $1,300 origination points (1% of the $130,000 principle)
- $7,800 interest payments (6 months x 12% interest)
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= $55,900 total profit (doesn't include taxes or rehab costs)