Coastline offers what we believe is the most consumer friendly Residential Lot Loan available in Northeast Florida. It is a 15-year fixed interest rate loan with no prepayment penalty and no balloon payment. We will make Residential Lot Loans up to $200,000.
Our Residential Lot Loans are available to people who live or work in Duval, Nassau, baker, Clay and St Johns County, Florida
And when you are ready to build a home, Coastline offers a home construction loan.
1. How Much Will We Lend
As part of the loan approval process you will provide us with a copy of the building plans and specifications. We will have an appraiser value the home on an as completed basis. Using this appraised value we will lend up to 80% of the expected value of the home.
However, we expect you to have a real investment in the home and will expect you to have at least a 10% investment in the home. Your investment can come from a cash down payment or from the value of the land you contribute to the construction in excess of any debt remaining on your land.
Our maximum loan amount is $517,000. At the end of construction this loan amount is made by a $417,000 1st mortgage loan and a $100,000 2nd mortgage. If your loan is $417,000 or less, we use only a 1st mortgage loan to finance the permanent, after construction loan.
2. The Loan Process
There will be an initial loan closing where your loan is established.
As your construction progresses, we will make progress payments, also known as construction draw payments, to your builder as work is completed.
During this construction period you will pay monthly interest only on the monies advanced. The interest rate charged is at the prime rate of interest with a floor rate of 6.5%. The interest rate charged during construction not be less than 6.5%. You only pay interest on the amount of the construction loan that has been advanced.
Prior to the first construction draw payment, the builder will provide us with copies of the building permit, the builders risk insurance policy and a foundation / slab survey.
Your permanent interest rate can be locked-in when your new home is within 45 days of receiving the certificate of occupancy.
At conclusion of construction, we will need copies of the certificate of occupancy, homeowners insurance and a final survey to move the loan to the modification closing. You may also need an elevation certificate from your surveyor to determine the need for flood insurance. At this time we will also obtain a final appraisal on your new home and we will update your loan application to verify there is no substantial change in your financial condition from what we verified at your initial loan application.
3. The Modification Closing
When this is completed, there is a final loan modification closing where your construction loan is converted into a permanent mortgage loan with a new term and a new interest rate. This is generally when your builder receives their final construction payment.