Currently have 5 ac lot - purchased for $137,500, paid $27,500 down (20%), owe $110,000 (loan via CFC)
Plan to build custom home in 2013 or 2014
Had builder look at plans similar to what we want, got estimate of $120 per sqft, but planning on $150 (home 3000ish sqft)
New home build, plus pool/landscaping/septic (water and elec in place), plus roll in land note ($110K) = estimate of $650-$750K total cost (outside possibility of pushing this to around $800K with upgrades and appliances)
Beginning Jan or Feb 2013, will have down payment funds equal to about 15% of estimated total cost (in any of the aforementioned "total cost" scenarios)
Based on online mortgage calculators, mortgage to gross monthly income ratio will be less than 20%
DTI 18% without new house and land, 35% with new house and land (declining to 14/31% by 2015, and 6/24% by 2017)
Waiting until 2014-15 puts us above 20% down, with less debt...making things a lot easier from a financing standpoint, but expecting new addition to family and would like to get into new house (in the same town as my job) ASAP.
Questions:
1. Any loan products for jumbo loan, 10-15% down? Can't predict rates a year from now, but current rates with excellent credit?
2. Do I qualify for FHA 1x close loan?
3. Plan on approaching architects later this year, should I start now? I have already pre-selected 2 or 3 and have years of home idea pics and plans.
4. Considerations for first time custom home build? (i.e. "I wish I'd known then what I know now?")
5. Probable builder is a trusted friend who has extensive residential and commercial building experience. Close friend = lower estimate for build (elsewhere, probably $200 per sqft). What things should I ask him, look for, insist on, be wary of? On one hand, I like knowing my builder personally. On the other hand, I am wary of the old adage, "Don't do business with friends or family." Advice?
Would appreciate any insights or recommendations you can offer.
[This message has been edited by GasPasser97 (edited 3/18/2012 3:02p).]
Plan to build custom home in 2013 or 2014
Had builder look at plans similar to what we want, got estimate of $120 per sqft, but planning on $150 (home 3000ish sqft)
New home build, plus pool/landscaping/septic (water and elec in place), plus roll in land note ($110K) = estimate of $650-$750K total cost (outside possibility of pushing this to around $800K with upgrades and appliances)
Beginning Jan or Feb 2013, will have down payment funds equal to about 15% of estimated total cost (in any of the aforementioned "total cost" scenarios)
Based on online mortgage calculators, mortgage to gross monthly income ratio will be less than 20%
DTI 18% without new house and land, 35% with new house and land (declining to 14/31% by 2015, and 6/24% by 2017)
Waiting until 2014-15 puts us above 20% down, with less debt...making things a lot easier from a financing standpoint, but expecting new addition to family and would like to get into new house (in the same town as my job) ASAP.
Questions:
1. Any loan products for jumbo loan, 10-15% down? Can't predict rates a year from now, but current rates with excellent credit?
2. Do I qualify for FHA 1x close loan?
3. Plan on approaching architects later this year, should I start now? I have already pre-selected 2 or 3 and have years of home idea pics and plans.
4. Considerations for first time custom home build? (i.e. "I wish I'd known then what I know now?")
5. Probable builder is a trusted friend who has extensive residential and commercial building experience. Close friend = lower estimate for build (elsewhere, probably $200 per sqft). What things should I ask him, look for, insist on, be wary of? On one hand, I like knowing my builder personally. On the other hand, I am wary of the old adage, "Don't do business with friends or family." Advice?
Would appreciate any insights or recommendations you can offer.
[This message has been edited by GasPasser97 (edited 3/18/2012 3:02p).]