Your
partner in construction financing.
Bank of Alameda has built its reputation over the years as a market leader in construction lending for single family homes, industrial properties, and retail and office buildings. We are one of the most reputable construction lenders in the Greater Bay Area and obtain much of our business through referrals. Our support of builders and customers throughout the area has provided us the experience needed to offer creative and personalized financing programs for our customers. We extend various tailored financing programs to meet the specific requirements of both the individual homeowner and builder. |
What is a Construction Loan, anyway?
A Construction Loan is interim financing of a construction project. The key element is that the loan is secured by, and funds are used for, the completion of improvements. Typically, the advance rate ("Loan to Value") is based upon an appraisal of a future improvement to real estate. Terms typically reflect a floating rate indexed to the bank's prime lending rate, payment of a loan fee, and a short term maturity with interest only payments. Frequently, the interest on the loan is financed from a portion of the loan funds, enabling the borrower to carry on with their more usual affairs while the work is being completed. |
