I purchased a vacant lot in Florida 6 months ago and building a single family home on it right now. I have a lot loan but funded the construction of the home out of my personal cash. It will be completed in 3 weeks and I’m looking for a refinance product for this situation. Quicken Loan told me they require 12 months seasoning and I’ll only have 6 months. I’m self employed with 760 credit and good liquid reserves. Home should appraise around $600k but only want $417k first to avoid jumbo rates ( I THINK). This will be my primary residence and I/O ARM fixed for 5/7 years would be perfect. Any suggestions would be greatly appreciated.
Depending on the county you are in you may be limited on the Highest LTV available to you. Other than that your situation sounds very favorable. Seasoning should not be an issue. Did u act as your own GC?
I’m in Tampa, Hillsborough County Florida. I did use the services of a General Contractor. Quicken Loan did have an issue with seasoning.
Why is it a problem to do this with a local bank? And I thought the rates on jumbo loans were lower?
Bank of America, who does my business banking will only do the refi after 12 months of owning the lot. I’m only at the 6 month mark. They will give me 80% of my raw cost but that is far less then 80% of the value…this is why I funded the project myself. I’m sure a local bank will do this, but I just wanted to see what this vehicle produced. Jumbo loans offer higher rates as well.
While checking the local banks in Tampa you may also look into the credit unions in town. If you are not a current member most have fairly broad membership rules and they often have superior loan terms since credit unions do not pay federal income tax.
Jumbo rates are through the roof. Depending on your area you may qualify for more than 417K at conventional rates. Since you used a GC you should have no problems qualifying for conventional financing with or withoutn seasoning. I don’t know why you would want to use a credit union or a local bank in this situation as they will be limited on programs and amortizations.
I live out in Denver and I have noticed a new program but I don’t know if it is available in FL. You can do a first position Heloc and you can do it as a Construction to Perm… I am not sure about all the locking features as far as what it will do to your rate but I dont think the FED is going to raise rates anytime soon aslo you can always contribute to Principle. Also the FED is expected to raise the Jumbo limit in April I believe…