Address: 10300 SW Greenburg Road – Suite 270, Portland, Oregon 97223
States They Lend In: Oregon and Washington
Types Of Loans
Bridge loans are short-term interim financing solutions. Typically, bridge loans are used until a permanent form of financing can be obtained. Many of our Borrowers use a bridge loan to purchase a property that will be held in a rental portfolio or they wish to occupy the home after repairing and refinancing. Money from the new financing is generally used to pay back the bridge loan, as well as other capitalization needs. Rather than waiting for a standard financing product, savvy investors realize that there are many reasons to pursue a bridge loan.
In many cases, investors will lose a valuable real estate opportunity if they wait for the conventional loan process which can take at least 30 days and sometimes longer. In other scenarios the property does not qualify for conventional financing due to structural, zoning or repair issues or the Borrower does not qualify due to credit issues. A bridge loan allows the Borrower a period of time to repair the property and/or their credit until permanent financing is available. In either case, Silverado Funding can provide a fast, cost-effective solution in the form of a bridge loan. We are committed to expediting the loan process in order to close a transaction quickly. Silverado Funding will work with you to determine the best loan program for your unique situation. Please contact us for more information on this or any other type of loan program.
A rehab loan is used primarily for the acquisition and repair of a home or building. Silverado Funding can provide capital, based on the after repair value (ARV) of the property up to 75 percent LTV. Silverado specializes in short-term rehab loans to real-estate entrepreneurs and contractors remodeling homes before selling them. The lending services extend to contractors, real estate entrepreneurs, and investors. Loans are short-term with a 1 year maximum. Interest rates and points vary by location, differing loan conditions and transaction type.
Silverado Funding, LLC is pleased to provide this competitive and in demand type of financing for new construction with 2 distinctive products:
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.
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.
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.
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.
Rate and Terms
Silverado Funding LLC is a private lender, providing funding for real estate entrepreneurs in need of expedited financing to acquire properties at substantial discounts. Our lending services extend to contractors, builders, real estate entrepreneurs, and investors. Loans are short-term with a 1 year maximum. Interest rates and points vary by geographical area, differing loan conditions and transaction type.
Silverado Funding Loan Terms
Rate: 12% – 18%
Term: 6 months- 1 year, interest only
Doc Prep: $1,000 – $1,500
Prepaid Interest: 90 days – 180 days
Appraisal Fee: Paid by borrower – usually $550-$750
LTV: up to 75% of estimated after-repair value (ARV)
Borrower’s equity position 10% (3 months of interest collected out of this amount)
Rehab / Construction Funds: If applicable: funds will be held by lender and released in draws based on Disbursement Procedures.
Min Loan Amount: $50,000 in Oregon
Max Loan Amount: 1 million
Exit Strategy: Must have a well-researched plan for resale or refinance
Additional Points (Prorated): 1-6
Term: 6 months, interest only
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