Jumbo Construction Loans
Construction loans have higher interest rates when compared to a mortgage for a home already built.
For a Jumbo Construction loan…
What minimum loan amount?In Texas for a single family home the loan must be at least $806,500 is a jumbo loan.
What types of JUMBO construction loans are available? see the options below
Construction Only
12-24 Month Loan- ARM – the rate can change monthly bottom rate of 6.25%
- Builder can be the owner or a traditional builder
- Max loan of 90% of total cost (land + construction budget) up to $1,500,000 loan and reduced to 85% or 80% depending on loan amount and borrower strength
Construction Only
12-24 Month Loan- Fixed interest rate
- Builder can be the owner or a traditional builder
- Max loan of 90% of total cost (land + construction budget) up to $1,500,000 loan and reduced to 85% or 80% depending on loan amount and borrower strength
One Close
15 or 30 Year loan- Fixed for 6 years then rate adjusts every 3 years 0.25% below WSJP rate
- Builder can be the owner or a traditional builder
- Max loan of 90% of total cost (land + construction budget) up to $1,500,000 loan and reduced to 85% or 80% depending on loan amount and borrower strength
APR
- APR stands for Annual Percentage Rate
- APR is not the interest rate you pay monthly but the monthly interest with the loan costs spread out over the life of the loan so a short 1-2 year loan will have a very large APR
APR
- APR stands for Annual Percentage Rate
- APR is not the interest rate you pay monthly but the monthly interest with the loan costs spread out over the life of the loan so a short 1-2 year loan will have a very large APR
APR
- APR stands for Annual Percentage Rate
- APR is not the interest rate you pay monthly but the monthly interest with the loan costs spread out over the life of the loan
I
What type of builder is needed for this loan? Builder can be the owner or a traditional builder
What is max loan available? $3,000,000
What down payment is required for a max loan available?$3,000,000 needs 20% equity / down payment, $1,500,000 needs 10% equity/down payment
What credit scores are required for better rates on a JUMBO loan?680 middle score by one borrower.
How is the credit score calculated? Each borrower usually has 3 credit scores (from Transunion, Equifax, Experian). Take the middle score from each borrower. Use the middle score from the borrower with the highest credit score. all borrowers need 680 or better score.
Can I average my credit scores from each agency?No underwriters do not allow averaging credit scores.
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