26Jan

Create Equity by Building your next Home

by Lee Seward Uncategorized, building a house, buying a new home, Construction, construction companies, construction contractor, Custom Homes, florida homes for sale, for sale by owner, general contractor services, Home Equity, Home For Sale, home mortgage, Home Remodeling, houses for sale, Housing Market, investing in real estate, local building contractor, local construction company, market trends in real estate, mortgage rates, new home construction, new home florida, new homes for sale florida, Property For Sale, Real Estate, real estate investing, real estate market, Rebuilding Homes, Remodeling, Renovation, small construction companies

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
One-time close
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.

3. MidFlorida

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
One-time closing
Local underwriting and closing decision-makers during the loan process

Seacoast Bank has a long history in Florida, tracing its roots back to 1926. Their primary areas of focus today are in Broward County through the Treasure Coast into Orlando and west to Tampa.

Does a Florida construction loan make sense for you?

Getting a construction loan in Florida comes with huge benefits and very little downside. You’ll likely be able to make interest only payments during the construction phase, which makes your monthly payment affordable as an existing homeowner since you’ll be making mortgage payments on your current home until the new construction is complete.

The challenges of a construction loan in Florida are that you’ll find the process different from a typical mortgage, which is why we recommend working with a loan officer that specializes in construction loans. At the end of the day, you’re going to want someone who has extensive experience doing nothing but construction loans day in and day out.

If you have an interest we can help you select a property that will fit the home you want to build and we can connect you with a professional experienced lender to assist you in the process. Our extensive network of realtors and architects are available all over Florida. Give us a call or send an email to learn more.

18Nov

Remodeling

by Lee Seward Home Remodeling, add second story addition, boost real estate earnings, building a house, buying a new home, Construction, construction companies, construction contractor, construction contractors, Contractors, Custom Homes, florida homes for sale, general contractor services, Home Equity, Home For Sale, home mortgage, houses for sale, Housing Market, HVAC Design Critique, investing in real estate, licensed contractors, local building contractor, local construction company, market trends in real estate, mortgage rates, new home construction, new home florida, new homes for sale florida, Paint, Property For Sale, Real Estate, Rebuilding Homes, Remodeling, Renovation, Repairing Home, small construction companies, Subcontractors

Considering Renovating Spring 2024?

Most people start considering remodeling projects and renovations in the spring. Here are somethings to consider:

Create an overall plan
Build your team
Obtain pricing from your GC
Leave enough time

Create your overall plan and if needed do the work in stages. By staging the work you can do things that fit in your budget now or within your time frame between vacations or school etc.

Build your team, You may think you need a designer or architect first. You really should put everyone in place early before you start designing. I have seen to often when I deliver a price to a client and they are shocked by the number. They tell me it is impossible the cost should be that much, when actually the cost is really the same cost I would pay for my home. What usually happens is a client will negotiate the Architect to charge $X percent over the cost of the project. The client provides a target construction budget and the drawings are suppose to reflect that. Sometimes they do and sometimes they don’t. Client’s many times cause increased budget costs. It is easy to love something drawn on paper, not so much when it blows up the targeted budget.

On my end I would rather be involved early and give input to numbers while the design develops. If I understand what my client wants to spend I can help with value engineering while the plans are developed. How do you hire a GC early and protect yourself? Interview and screen your GC candidates. You want transparency and trust, knowledge, willingness to work and proactive. You can lock in your GC based on a percentage fee over cost. You can also hire a GC for pre-construction work and send the final plans out for bid to make a final decision. We usually wrap our pre-construction into the project rather than bang up the client for a few hours of time.

Time, drawings and design can take 3 months easy. Between selection and review and revision that is a generous time frame. Then permits can take another 2-3 months depending on the work and sometimes longer. Add the time to make GC selections and such and y0u could lose 8 months in preplanning and prep time. Goodbye spring!

Remodeling

Build your team and select a General Contractor who is knowledgeable and can provide you preliminary numbers.

Inside tip: The process of hiring a GC or Architect, Designer etc. is the same process and challenge we face when hiring subcontractors. We look for proactive attitudes, details written on paper, fair pricing, professionalism, and really try hard to weed out the BS.

Construction Budget

Details matter, when your G.C. provides your estimate there should be line items with details. You should be able to see what is going into your project and the cost for each item. If you receive one line item with one cost for the entire project…stay away!

Some GC will submit very few line items and one price. They may tell you this and that is included, but if you choose someone who cannot put the details on paper you put yourself in a bad place. We stay away from subcontractors who try to do this with us. The gray area is where all the trouble sits. Full details reduce anxiety, surprises, opens up communication, and if everyone is on the same page then you eliminate problems.

New Homes

Everything should be transparent when dealing with finances. This image is a budget for one of our projects based on renderings we received from the Architect. We have also contributed costs allocations prior to receiving money from this client. Our clients are able to login and view the finances and details associated with the projects we are completing for them 24-7.

When you are seriously considering a new home or remodeling project you should put thought into the entire design. Know the cost as you design so you do not over design or over build for your neighborhood.

Stage the work based on financial decisions and how you have to live during the work. It may be better to move out short term or work on one floor (or area) at a time.

Make certain you know what is included by the estimate and not what someone is speaking to you. Have everything listed with a value, this makes changes later much easier. Tile to plumbing fixtures, cabinet design and drawer count, hardware to ceiling light counts. Details, details, and more details.

Give yourself time to plan and then execute the work, we spend more time planning the work then executing the work. Who wants to live in a construction zone longer than needed? Plan ahead of time as this saves you the most money and grief. Transparency, if your contractor is not transparent then stay away and part ways. To often clients listen to the sale of the project and jump into contracts that have no real explanation or detail of what the work includes. Some contracts have pages of what is not included and how the contractor is not liable for anything. That is a sign to stay away and pump the brakes. You can easily end up paying a deposit or your first invoice that reflects 50-70% completion of the contract work and only have 5% actually finished on site. 5-10% deposits are standard anymore than that beware. Progress payments are for progress. If there has been no work on your property then you should pay nothing. Be Careful to pay only for what you have received or what has been completed on your home. Do not over pay your contractor and only pay for what was completed.

Renovation

Set yourself up to enjoy the process and succeed. New homes, remodeling, and renovating can and should be fun. Work with people who know what they are doing and remove the stress and drama from your project.

If you are considering remodeling or renovating or even building a new home please contact us as we would enjoy working with you.

561-597-0021 or info@iridiumdev.io

22Oct

Home Equity

by Lee Seward real estate market, boost real estate earnings, building a house, buying a new home, Construction, construction companies, construction contractor, construction contractors, Contractors, Custom Homes, fix and flip, flipping florida, flipping homes, florida homes for sale, for sale by owner, general contractor services, Home Equity, Home For Sale, home mortgage, Home Remodeling, houses for sale, Housing Market, improve sales in real estate, investing in real estate, licensed contractors, local building contractor, local construction company, market trends in real estate, mortgage rates, new home construction, new home florida, new homes for sale florida, Property For Sale, Real Estate, real estate agent, real estate commission, real estate investing, real estate license, Rebuilding Homes, Remodeling, Renovation, Repairing Home, small construction companies

Create Equity and Wealth

Wealth Building

Challenging markets are when you seek ugly ducks in great neighborhoods. Renovate and create your equity and increase wealth.

Houses that have been on the market longer were overpriced and not as desirable. The location can be and at some point the seller will take reasonable offers or just remove the listing. These are the deals to seek out and create. Place an offer and see what happens.

Remodel

This home was flood damaged and the sellers want out. Remodeling this home regardless how cheap is not worth it because it can flood again. But you can raise the home for about $170,000 and create a sustainable environment and equity.

When you are looking to add money to improve a home you need to be able to sell the finished product for 2x+ or higher what your total costs are. We usually operate with 3x+ but we are also doing our own work.

Purchase is where you make the most gains. Know the market and what land costs are (reasonable costs). This helps you decide what your max purchase price will be. Know your improvement cost, this house at $300,000 and $170,000 in improvements = $470,000 total cost. The finished home elevated above FEMA floodplain will have lower insurance premiums saving a buyer $10,000+ every year. This home would sell easily finished at $940,000 in this neighborhood.

You created $470,000 in equity today. Many people will tell you that this is impossible, but it is possible. We do it and you can to.

Raise your Home

Spend money on sustainable remodeling. Elevating the home stops water damage from future flooding, it lowers your insurance rates by $10,000+ per year, the best thing is you just significantly increased your equity and wealth.

Contact Iridium Development and we can help you with raising your home.

info@iridiumdev.io

561-597-0021

Florida License #CGC1534948

Category mortgage rates

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.

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.

$14,000 Down Payment

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

One-time close

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.

3. MidFlorida

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

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

One-time closing

Local underwriting and closing decision-makers during the loan process

Seacoast Bank has a long history in Florida, tracing its roots back to 1926. Their primary areas of focus today are in Broward County through the Treasure Coast into Orlando and west to Tampa.

Does a Florida construction loan make sense for you?

Considering Renovating Spring 2024?

Most people start considering remodeling projects and renovations in the spring. Here are somethings to consider:

Create an overall plan

Build your team

Obtain pricing from your GC

Leave enough time

Create your overall plan and if needed do the work in stages. By staging the work you can do things that fit in your budget now or within your time frame between vacations or school etc.

Remodeling

Build your team and select a General Contractor who is knowledgeable and can provide you preliminary numbers.

Inside tip: The process of hiring a GC or Architect, Designer etc. is the same process and challenge we face when hiring subcontractors. We look for proactive attitudes, details written on paper, fair pricing, professionalism, and really try hard to weed out the BS.

Construction Budget

Details matter, when your G.C. provides your estimate there should be line items with details. You should be able to see what is going into your project and the cost for each item. If you receive one line item with one cost for the entire project…stay away!

New Homes

When you are seriously considering a new home or remodeling project you should put thought into the entire design. Know the cost as you design so you do not over design or over build for your neighborhood.

Stage the work based on financial decisions and how you have to live during the work. It may be better to move out short term or work on one floor (or area) at a time.

Renovation

Set yourself up to enjoy the process and succeed. New homes, remodeling, and renovating can and should be fun. Work with people who know what they are doing and remove the stress and drama from your project.