Section 5: Construction to Permanent on a Jumbo Loans

 

Construction to Permanent Jumbo Loans

A construction-to-permanent jumbo loan, also called a single-close loan, is a special loan used to finance the cost of buying land, building a home on it, and later serving as the mortgage on the home once it's finished being built.

Construction to Permanent Jumbo Loan Requirements

While service requirements remain the same, construction to permanent jumbo loan credit and income requirements are typically more stringent compared to a conforming construction to permanent jumbo loan. Additionally, FHA high balance rates may differ slightly -- but every lender is different.

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Construction to Permanent Jumbo Loan Credit Score Requirements

The minimum credit score for a jumbo loan is typically at least 680, but some lenders may require an even higher one. The higher your credit score, the lower your interest rate is likely to be. More cash in the bank.

Construction to Permanent Jumbo Loan Down Payments

As a general rule of thumb, you can expect to make a down payment of at least 10% on your jumbo loan. Some lenders may require a minimum down payment of 25%, or even 30%. While a 20% down payment is a good benchmark, it’s always best to talk to your lender about all options. The good news is you don’t have to feel limited by these figures, you’re free to make an even larger down payment if you wish. By making a bigger down payment, your total loan will be smaller and your monthly mortgage payments will be lower.

Talk with an Orbit Home Loan specialist if you're considering a Construction to Permanent Jumbo Loan.

Construction to Permanent Jumbo Loans v. Traditional Jumbos

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Talk with an Orbit Home Loan specialist if you're considering a Jumbo Loan.