Jumbo New Construction Loan Calculator: Estimate Costs, Cash to Close, and Your Path to a Custom Home
- By Jim Blackburn
- on
- Tags: Calculators, New Construction, Spec Homes
If you’re planning to build a luxury home from the ground up, a jumbo new construction loan can help you bring your vision to life. Whether it’s your forever home or part of a wealth-building portfolio, understanding the financial picture is key before breaking ground.
Sample Project Overview
You’re purchasing a $900,000 lot and planning to spend $1 million on construction with $100,000 in soft costs. With a projected after-repair value (ARV) of $3,000,000, here’s how the loan scenario unfolds:
Projected Construction & Development Costs
| Category | Amount |
|---|---|
| Land Cost | $900,000 |
| Soft Costs (permits/design) | $100,000 |
| Hard Costs (build budget) | $1,000,000 |
| 10% Hard Cost Contingency | $100,000 |
| Total Property Costs | $2,100,000 |
Interest Reserve & Financeable Costs
During construction, lenders often include 12 months of prepaid interest, assuming a higher temporary rate.
| Category | Amount |
|---|---|
| 12-Month Interest Reserve | $167,832 |
| Estimated Closing Costs (3%) | $63,000 |
| Total Financeable Allowable Costs | $2,330,832 |
Loan Structure & Payment Snapshot
| Item | Estimate |
|---|---|
| Max Loan Amount (75% ARV) | $1,864,666 |
| Cash Out of Pocket | $466,166 |
| Principal & Interest (Post Build) | $12,393 |
| Monthly Insurance | $500 |
| Monthly Taxes | $1,000 |
| HOA | $0 |
| Total Monthly Payment | $13,893 |
Income Required to Qualify
Most jumbo lenders require borrowers to keep their total debt under a 43% debt-to-income ratio, although stronger borrowers may get approved up to 50%.
| Category | Estimate |
|---|---|
| Monthly Income Target | $32,310 |
Required Documents to Close
You’ll need these documents for a successful loan approval and funding:
Builder Docs
- Signed construction contract
- Architectural plans and draw schedule
- Approved permits
- Certificate of occupancy (or 1004D appraisal completion)
Property Docs
- Well/septic approvals (if needed)
- Soil/geotechnical reports (if required)
- Pest/environmental inspections
Loan Docs
- Final closing disclosure
- Note and mortgage security instrument
- Title insurance and survey (if required)
- Appraisal and completion verification
Begin Building Your Dream Home
This loan scenario gives you a clear breakdown of the expected out-of-pocket investment, the monthly carrying cost once construction is complete, and how much income you’ll need to qualify.
You’re now one step closer to your dream build—without financial surprises.
Start Your Jumbo New Construction Loan Today
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Schedule a CallImportant Disclaimer
This calculator is for illustrative purposes only and does not constitute financial, legal, or investment advice. Results are based on general assumptions and may not reflect actual performance or eligibility. This is not a loan estimate or approval. Please consult with a licensed mortgage advisor before making financial decisions.
