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Hard money loans in Federal Way, WA
Fix and flip, rental and construction loans for investors in Federal Way and the South Sound.
Investing in Federal Way real estate
Federal Way lies on Puget Sound between Seattle and Tacoma. Most of the city was built from the 1960s through the 1990s, so the housing is largely ramblers, split-levels and two-story homes in planned neighborhoods such as Twin Lakes and Marine Hills, along with a large supply of condos and townhomes.
Prices are among the lowest in King County, which lets investors buy with less cash. Link light rail reached Federal Way at the end of 2025, giving the city a direct rail connection to Sea-Tac Airport and Seattle.
Neighborhoods investors ask about
- Twin Lakes: planned neighborhoods of 1960s and 1970s homes around two lakes
- Marine Hills and Redondo: homes with views of Puget Sound
- Steel Lake and the city center: older homes and condos near the light rail station
- West Campus: townhomes, condos and 1980s single-family homes
- Mirror Lake and Lakota: established single-family neighborhoods on the west side
What to plan for on a Federal Way deal
- Homes from the 1970s and 1980s often need roofs, siding, windows and plumbing updates before finishes.
- Many condos and townhomes have homeowner associations. Confirm rental caps and special assessments before you buy one to hold.
- A DSCR loan counts association dues inside the monthly payment, so they affect the ratio.
- Our minimum loan is $75,000. On a lower-priced condo, check that your purchase and rehab financing together reach that amount.
Loan programs for Federal Way investors
| Program | What it funds | Maximum leverage |
|---|---|---|
| Fix and flip loans | Buying and renovating a property you plan to resell | Up to 90% of purchase and 100% of rehab, capped at 70 to 75% of after-repair value |
| DSCR rental loans | Buying or refinancing long-term and short-term rentals | Up to 85% loan-to-value on a purchase, up to 80% on a cash-out refinance |
| New construction loans | Ground-up builds, including the land | Up to 90% of cost for experienced builders, capped at 70 to 75% of completed value |
| Portfolio and commercial loans | Several rentals under one loan, plus multifamily and commercial property | Up to 80% on a portfolio purchase; commercial quoted deal by deal |
Federal Way hard money loan questions
Yes. We lend on investment property in Federal Way and across South King County, including fix and flip loans, DSCR rental loans and new construction loans.
Yes. Warrantable and non-warrantable condos can be financed with a DSCR rental loan. Non-warrantable condos are financed at slightly lower leverage.
Yes, as long as the loan is at least $75,000. On a fix and flip loan the purchase and rehab financing are combined to reach that amount.
Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are complete. Rental and DSCR loans take about 30 days, including the appraisal.
Have a deal in Federal Way?
Tell us the address, the purchase price and your plan for the property. We will come back with leverage and pricing for your scenario.