Building on your own land and require financing for a higher Jumbo loan amount? Jumbo construction loan options have recently expanded to some new features including lower down payments. In this post, we will review all the benefits and qualifying requirements you need to know.
Questions? please connect with us by submitting the Request Contact form on this page anytime. Please be sure to select “Yes, I want to build on my own land” on the request form where requested.
Jumbo Construction-To-Permanent Loan Benefits:
- The CP program has a one-time close feature.
- Loans can be either 30 or 15-year fixed or any of the standard adjustable rate terms. The interest rate on either type of loan can be locked at various times of the construction process.
- Interest only payments during the first year of construction. This is a great benefit especially for borrowers that currently make payments on another mortgage.
- May be used for new construction, renovation for existing or new purchases, including primary and second homes. Refinance options are also available. Note, buyers that are purchasing an existing home should read about the regular Jumbo loan options here.
- The lender will include any equity in your land towards your down payment, depending on the value of the property and the down payment requirements of the loan.
Jumbo Construction Loan Limits For Primary Residence Homes:
- Loans up to $750,000: 10% down payment (90% loan to value)
- Loans up to $1,500,000: 20% down payment (80% loan to value)
- Loans up to $2,000,000: 25% down payment (75% loan to value)
- Loans up to $3,000,000: 30% down payment (70% loan to value)
Jumbo Construction Loan Limits For Second & Vacation Homes:
- Loans up to $1,000,000: 20% down payment (80% loan to value)
- Loans up to $1,500,000: 25% down payment (75% loan to value)
Other Jumbo Construction Perm Requirements:
- 720 credit score required for loan to values above 80%
- 680 credit score eligible with 30% + down payment.
- All programs require full income and asset documentation: Two years or tax returns and/or W2. Two months of recent bank statements.
- Saving “reserves” will be required. The exact amount depends on the loan amount, credit, down payment.
- U.S. Citizens only.
- Investment home construction is not permitted.
Please call us 7 days a week to learn more, or just submit the Request Contact form on this page.