Time to Build your Home
Create Equity 2024
10% Down for Loans up to $800,000
20% Down for a loan up to $1.5M
30% Down for a loans up to $3.5M
Put $700,000 of Equity in your Wallet
POPULATION GROWTH IN FLORIDA has been booming lately. According to recently released census data, Florida has seen its total population grow by 14.6% over the last decade, nearly double the growth rate of the United States.
The thousands of people streaming into Florida are putting pressure on housing prices. The Florida Realtors association reports that the statewide median sales price for single-family existing homes is $375,000, up 23% from the previous year.
With the increasing demand for real estate and rising prices across the state, many people have turned to construction loans to finance the building of new homes. If you’re going to spend a lot of money on a house, you might as well purchase a lot and build a custom dream home, right?
When someone decides to build a new dream home, one of the first things they start exploring are construction loans, which are a little different from conventional mortgages when you’re purchasing an existing home.
As you research, you’ll soon find that construction loans have different rules and qualifying criteria. The nightmare scenario to avoid is one where you’ve committed to purchasing a lot but end up struggling to find a construction loan.
Fortunately, there are loan officers that specialize in construction loans. They have years of experience working with underwriters to make sure you navigate the application, pre-approval, and closing process.
If you’re a homebuyer looking for a construction loan specialist, we can quickly connect you with several options customized to your specific needs so that you can make the best decision for you
Benefits of a new a construction loan in Florida
Construction loans are short-term financing that are used to cover the cost of building a house from start to finish. Construction loans can cover the costs of buying land, working with an architect to draft plans, permit fees, and the labor and materials necessary to complete the house.
Because construction loans aren’t secured by a completed house, the approval process for a borrower can be more complex than for a traditional mortgage. Your lender will likely want to be more involved in the process of understanding the construction timeline, budget, plans and your personal financial situation before approving the loan.
The other important thing to consider is that home construction loans aren’t distributed as a lump sum. Instead, your lender will distribute money to you through a series of installment payments as the states of the construction are completed.
The benefit of a construction loan is that you’ll typically only be required to pay the interest on the funds as they are drawn. You won’t need to make the principal payments until you complete construction. Your lender will probably have an option to convert your construction loan into a typical mortgage at the end of the construction process.
$14,000 Down Payment
The Iridium Team works with you to from property selection to building completion and each step along the way. We know how to get you the most value for your desired budget and that is why we start with developing your budget. Once we have finalized the budget we help you in property selection and lending. Our network treats you as top priority, everything is streamlined and efficient. Our Realtors provide the best service all over Florida and our Preferred Lenders offer various low cost options.
Lets go over the numbers and the type of Equity you will create. Depending on what your final budget is we can put you in a $1.5M home for $800,000 with an $80,000 cash down payment. You will create $700,000 in equity plus own an amazing home. $14,000 down payment will get you a $140,000 construction/permanent fixed 30 year mortgage and instant equity of $150,000 from a $290,000 home valuation.
5 Top Florida Construction Loans
1. TD Bank
The TD Bank construction loan has some great benefits if you’re looking to build a house, with down payments as low as 20% for a loan up to $1,500,000.
720-740 FICO score desired
20% down required on loans up to 1.5M
30% down required on loans up to 3M
Primary or secondary homes are eligible
Fixed rate and ARMs are available
Purchased lot considered in the down payment
No pre-payment penalties
Interest rate locked before construction begins
If land has been owned for at least 6 months, we will lend up to 80% of the appraised value of the entire project.
If land has not been owned for at least 6 months, we will lend up to 80% of the land acquisition cost+cost of construction
No Condos or Co-Ops. No investment properties.
TD Bank requires 10% of the construction costs to be held in reserve, and you can use their loans for vacation properties.
2. Space Coast Credit Union
The folks over at Space Coast Credit Union offer a home construction loan up to $650,000, so long as you have a minimum credit score of 650.
One Loan: from Construction through Final Permanent Mortgage
One Application, One Closing and One Paperwork Filing
Up to 90% Financing Available
We Make the Payments to Your Builder at Key Points Throughout the Process
Automatic Modification to Traditional Home Loan at the End of Construction
Fast Pre-approval Decisions, Online or Over the Phone
No Intangible Tax
SCCU Member Service for the Life of the Loan
SCCU Interest Rate Guarantee
As far as fees go, Space Coast Credit Union is advertising no application fees or pre-payment penalties. As of the time of publishing, they are charging $1,100 in origination fees.
MidFlorida is a regional credit union based in Lakeland, Florida with a construction mortgage product.
Down payment as low as 10%
Financing is secured before construction begins. You only need to be approved once.
Interest-only payments during construction
One-step, one-time closing
Converts to a fixed- or adjustable-rate mortgage.
Flexible loan terms up to 30 years
Jumbo loans available
MidFlorida offers you the option of converting your construction loan into a conventional mortgage once construction is complete. There may be additional closing costs associated with that conversion since you’ll be establishing an escrow account for insurance and taxes, paying title insurance fees and possibly paying off any unpaid construction phase interest.
4. Seacoast Bank
Seacoast Bank is another option as they lend in Florida and have a construction loan product.
Adjustable Rate Mortgage options are available
Fixed Rate Mortgage options are available that would give you the same fixed rate from construction through permanent loan
Local underwriting and closing decision-makers during the loan process