Dang, that seemed to come out of nowhere. So if you don't mind me asking, what's the summary? $850k or so at 6.5%? Assuming a construction loan? 1 year? I'm assuming everything as far as blueprints had to be finalized?
No, it is fine, I'll provide whatever if it is helpful to anyone going into or thinking about the process. Yeah, based on 12 month.
Loan Summary:
We're doing 80/20 Loan to Value for the project.
Project Value:
$1,118,699
Loan Amount (80% of Value):
$894,959.20
To make that 80% we're providing 20% equity (
$223,739):
Land Equity (we own this):
$115,900
Down Payment (out of pocket):
$107,839
Total:
$223,739
We have a total closing cost of about $15,000 so will need that also, but that covers close for the construction loan and the permanent loan, so all fees are kind of front loaded. When we convert, we can convert at the 6.5% or float down if rates have fallen as well. Because we're in the jumbo loan territory, they're a little higher or we may have been able to get 6.35%? We'd like to provide enough additional out of pocket during the build process to get us out of jumbo at conversion. That'll be an additional $53k or so.
No stamps or blueprints finalized or anything like that. We're building outside of the City limits so much of the engineering blueprints and stamps are not required. Its still be being put together from the framing company and whatnot, just doesn't need approval.
