According to the 2020 Census, the population of Florida grew by 14.6% from 2010-2020. Every year, more and more prospective homeowners might seek out construction loans in Florida, due to the many beautiful locales the great state has to offer. Whether you’re looking to build your new home in Boca Raton or the Keys, a Florida construction loan can be your family’s path to a brand-new home that perfectly suits their needs.
Understanding Construction Loans in Florida for Residents
So how do construction loans work in Florida? As in the other 49 states, you must first meet the lender’s qualifications for a construction loan in order to get approved for a construction loan in Florida. This means you need to demonstrate sufficient income, assets, and credit history to repay the loan.
Keep in mind that construction loans typically require higher FICO scores and income requirements compared to a regular purchase mortgage. This is due to the increased risk that construction loans pose to the lender.
If you are approved and close on one of The Federal Savings Bank’s new construction loans in Florida, we will disburse your funds directly to the builder as work is completed on your new property.
Know Your Options: Escrowing for Taxes and Insurance
Many Florida homeowners choose to pay their new home’s taxes and insurance as part of their monthly payment to the lender, who holds the funds in escrow until payment is due. But some borrowers prefer to pay their insurance premiums and property taxes directly. If you choose not to escrow taxes or insurance on your Florida construction loan, inform your loan officer early in the process so you can receive an updated loan estimate.
At The Federal Savings Bank, our Florida construction loan experts are ready to help you when you reach them at 1-877-788-3520. They will guide you through the process of financing the home you want to build. No matter where you are in your journey– if you’re just gathering information, or you’re looking for a new lender ASAP – we can help you get settled into your new family home. Don’t hesitate to give us a call today.