AL and FL Mortgage News

Coming in just second to the increase seen in 2006, the 2022 conforming loan limits are out and available for use nearly 2.5 months earlier than expected.  That really is AWESOME news!! While limitations do apply, this can translate with approved credit the ability to buy an owner occupied single family home for $657,890 with 5% down, $694,440 with 10% down on a second home, and $781,250 for investment purchases with 20% down.  This applies to all counties in Alabama and Florida, if you are outside this area it may be different.

The advantage isn't just for those buying but for those buying to renovate, owners who want to renovate their existing home, or anyone building new construction using construction to permanent financing this is big news.

Announcements on USDA and FHA limits are expected to be on time in the final weeks of this year so check back with us on those.

If you want to know what this looked like in 2021 click here.

To learn more about renovation mortgages versus cashout-refinancing click here.

For ins and outs of residential construction financing click here.

Do you have questions, email Questions 

Please note purchase prices listed above are rounded down to the nearest $10 based on standard program maximum loan to values. Exceptions apply.  Nothing here constitutes an offer for financing and any information is based on approved credit.  For additional rate and cost information email service@gulfstatesfinancial.com NMLS # 835698. Equal Housing Lender.

Posted by Devin Murray on October 14th, 2021 12:05 PM


With lot prices and construction costs steadily on the rise for the new year and beyond, many borrowers are finding it difficult to accomplish a new home build within the new conforming loan limits of $484,350.  For those who already own their land we have seen customers curb this problem by sacrificing finishes in kitchens and bathrooms, reducing square footage, or omitting other extras like pools and/or larger garages.  For those who don’t already own their land and are rolling a land purchase into the transaction, it is common to opt for a smaller or less desirable location as well as making similar cuts to the project just to make the numbers work.

 

There are and will continue to be many benefits you need to explore on the topic of borrowing within conventional loan limits regardless of what your plans are but when building a new home the single biggest challenge of exceeding this limit is when borrowers are forced to (or believe they must) use a construction loan versus a construction to permanent loan.  This can be unfortunate because a regular construction loans can cause the following common problems:

  1. A forced refinance out of your construction loan which requires two sets of closing costs
  2. Being subject to changing rate and economic market conditions until your house is complete 9-12+ months down the road
  3. Being required to put more down on a construction versus a jumbo construction-to-perm loan 
  4. Inability to use lot/land equity toward the required down payment even if you are a seasoned owner

The good news is that as of today you might not have to deal with these headaches, make these sacrifices and/or be subject to these potential risks with the help of our New Jumbo Construction-to-Permanent Loan!

While it is impossible to highlight all the ins and outs our Jumbo One Time Close product here, the good news is if you are building your primary residence you might be eligible to borrow up to $1,000,000 with a 760 credit score with just 15% down or 15% total equity, up to $1,500,000 with a 720 score and 20% down/total equity, and up to $3,000,000 with 30% down/total equity. 

Also new for this specific product is the ability to finance a second home with a construction-to-perm loan.  Under this program a second home requires a 720 score across the board and will allow up to $1,000,000 with 25% down/total equity, up to $1,500,000 with 30% down/total equity, and $2,000,000 with 35% down/total equity, and $2,500,000 with 40% down/total equity.

As with conventional construction-to-perm loans, you can lock in your permanent rate up front and have just one set of closing costs.  Likewise Jumbo Construction-to-Permanent interest rates will vary with the construction time period selected in addition to credit score, loan-to-value and other factors.  However the major Jumbo advantage is that build periods have been expanded to 12, 18, or up to 24 months for projects up to $1,000,000 and beyond so this limits completion date stress significantly.

To see if you qualify, to get more information or to discuss your construction-to-permanent scenario with one of our licensed professionals please feel free to email us 24 hours a day or call 866-269-8335 during our regular business hours.

Product guidelines and terms may be subject to change at any point without notice.

Disclaimer

Posted by Devin Murray on December 11th, 2018 11:55 AM

Archives:

Categories:

My Favorite Blogs:

Sites That Link to This Blog:


English French German Portuguese Spanish