Construction Loans

Silverado Funding, LLC is pleased to provide this competitive and in demand type of financing for new construction with 2 distinctive products:

About Construction Loans

Speculative (spec) loan to a builder

Silverado Funding will fund a loan that is up to 75% of the appraised value of the finished product and must be in 1st lien position.  This may require a subordination of any existing debt. The builder should submit plans, specs and a construction budget for loan consideration. As part of the loan process, our inspector will make a site visit and perform an initial evaluation of the budget.  Builder will also be required to submit qualifying information such as items listed on the Loan Process Page. The builder can elect to make monthly interest payments or have an interest reserve as part of the loan as LTV allows and interest is charged only on disbursed funds.This loan is typically written for 6 months to 1 year and there is no prepayment penalty.  See Rate and Terms Page for more information.

Construction

Construction to permanent  loan to a homeowner

Silverado Funding is uniquely positioned to offer a construction to permanent loan for borrowers who qualify.   Silverado Funding will need builder contact and information such as plans, specs and a construction budget. Similar to the Spec Loan to a Builder, our inspector may make a site visit and perform an initial evaluation of the budget.  Borrower will also be required to submit qualifying information such as items listed on the Loan Process Page.  Generally this loan will be written for 6 months to 1 year and there is no prepayment penalty.  Please see Rate and Terms Page for more information.

These construction loans will be disbursed through a series of draws. The first will typically contain the permits and excavation. The remainder will be based on percentage of completion and verified by site inspections.  The final draw will be the balance of the loan based on substantial completion of the project or the issuance of a certificate of occupancy. Please see the Construction Disbursement Procedures Page for more information.

Silverado Funding will work with the builder to ensure that subcontractors are paid timely. Construction lien waivers and releases are required to ensure the project is a success for all parties.