Residential Lot & Construction Loan

Residental Lot Loans

• Competitive rates for your perfect lot of land
• Maximum amount of $200,000
• 15 year fixed insterest rate with no prepayment pentaly or balloon payment.
• Local, Northeast Florida decision-making and processing
• Detailed, attentive service from start to finish

Construction Loans

1. How much money can you borrow?
   • To get approval for your construction loan, you'll need to provide your building plans and specifications
   • An appriaser will determine the value of your future home, and based on that value, you can borrow up to 80%.
   • You must also invest at least 10% of the new home's value. This can be through a cash down payment or the value of the land you own, minus any existing debt on the land. 
   • The maximum loan amount is $517,000, consisting of a $417,000 1st mortgage and a $100,000 2nd mortgage. If your loan is smaller than $417,000, you'll only have the 1st mortgage.
2. The Loan Process Steps
   • Your loan is initially set up at a loan closing.
   • During construction, you'll make monthly interest payments based on the amount of money used for construction.
   • The interest rate is linked to the prime interest rate, but it won't go below 6.5%.
   • The builder provides necessary documents like building permits and insurance before each construction payment. 
3. Locking in the Permanent Interest Rate
   • You can lock in your permanent interest rate when your new home is 45 days away from receiving a certificate of occupancy.
4. Finalizing the Loan
   • Once construction is complete, you'll need to provide documents such as the certificate of occupancy and homeowners insurance.
   • An elevation certificate might be needed to determine flood insurance requirements.
   • A final appraisal and a review of your financial situtation are also conducted. 
5. Modification Closing
   • The final step is the modification closing, where your construction loan turns into a permanent mortgage with a new term and interest rate.
   • The typically happens when the builder receives their last payment for construction.