Navigating Jumbo Construction Mortgages in Glynn County

Jumbo construction mortgages are taking a larger and larger market share of the real estate market in Glynn County. Getting started on the process can seem daunting, but it doesn’t have to be.

Here’s some information to help you get started on your jumbo construction mortgage:

The luxury home market in Glynn County, Georgia is flourishing. Not only are buyers purchasing multi-million dollar existing homes, but there is also a construction boom taking place. When you’re ready to build or renovate a home, jumbo construction mortgages stand as key players in turning your dreams into reality. This blog post delves into the intricacies of jumbo construction mortgages, with a focus on Saint Simons Island, Jekyll Island, and Sea Island – gems nestled within the heart of Glynn County.

1. Understanding Jumbo Construction Mortgages

   Jumbo mortgages in Glynn County are defined as any loan that exceeds $766,550. Many luxury home budgets in our area will easily exceed that limit. Capital City Home Loans offers a customized one-time-close jumbo construction-perm mortgage for our clients that can save you money and protect your interest rate through and after closing and completion of construction. You can find more details about the construction loan process here.

2. Real Estate Landscape in Glynn County

   Glynn County has evolved from a well-kept secret to a booming resort area for homebuyers looking for new primary homes, vacation homes, and investment properties. Much of the housing stock in the most attractive areas of Saint Simons Island, Jekyll Island, and Sea Island is aging, and many buyers are looking for new construction. Some are even purchasing existing homes to tear down and rebuild a much nicer home. Our construction mortgage can help with building from the ground up, tear downs, and renovation builds.

3. First Steps to Build a Home

   The first step to building a new home is determining your budget and location. Will you purchase a vacant lot? Will you finance or pay cash for the lot? We offer a lot loan to help you secure your location before you start construction if you need it. Once you have your location, you should look at how much you want to spend. There are wide ranges of builders and builder quality in our local market, and each will price your home in different ways. Price-per-square-foot can vary anywhere from $250/ft to $900/ft.

   Picking a house plan, builder, and architect are your next steps. This step typically takes longer than most expect. My clients normally spend about 6 months in the planning and pricing phase of building a home before we even start the loan application in earnest.

4. Benefits and Challenges

   Building a brand new home customized exactly to your liking in the exact location you want is the biggest and best benefit of a new construction mortgage, but there can be challenges as well. Building is typically more expensive on a price per square foot basis than purchasing an existing home. The build process normally lasts about a year, but can be shorter or longer depending on the scale of your build and your builder. Jumbo construction mortgages are also more expensive than a purchase loan. The admin workload after closing is much heavier for the lender than a purchase loan. We work directly with your builder throughout construction to inspect the progress of the build, disburse draws, service your loan and payments, and modify the loan into a permanent loan at completion.

5. Local Regulations and Considerations

   Glynn County is a coastal market, and there are special permitting considerations for many new homes. If you’re planning on building on the water or close to the beach, you may have to get DNR permits and surveys for setbacks and docks. A lot of our area is also considered a flood zone by FEMA. Properties constructed in flood zones have higher insurance costs and may require additional fill dirt to meet code. Your builder, surveyor, and insurer can help you navigate these issues.

Conclusion:

Building a new home in Glynn County is a dream for many, and understanding the nuances of jumbo, conventional, and FHA construction mortgages is our specialty. My team and I will work with you every step of the way to get you into the new home of your dreams. Contact me for more information, and let’s get started today.