Construction Loan | SouthStar Bank Building a house is an adventure. Whether you’re looking for the perfect lot, building a new home, or doing both, SouthStar Bank can help you get started. We offer: 1. Lot Loans Identifying the property is the first stage in building a new home. You can secure the site with a raw land or lot loan until you’re ready to build. These loans normally have periods of 12 months to 3 years, depending on how much time is needed before converting to a construction loan and are amortized over a 20-year period. The money you put down on the land is usually applied to the construction loan’s down payment. 2. Construction Loans Once you’ve confirmed your plans and budget with your builder, you are ready to convert to a construction loan. A construction loan is a short-term loan that ranges from 12 to 18 months in length, depending on the size and budget of the property you’re building. It will be rolled in with your construction loan if you have a loan on your land. The land down payment is applied to the construction loan and in some situations, lot appreciation may be used to reduce the required down payment. 3. Construction-to-Permanent Loans It’s a good idea to think about your long-term finance choices when planning to build your home. Before you start your build, work with a loan officer who will walk you through your options, whether a refinance after construction or a single “one-time-close” loan, so you know what to expect from your permanent mortgage. The fact that a one-time-close construction loan effortlessly turns to a long-term, permanent mortgage once construction is completed is perhaps the most significant advantage. As a result, this loan is the preferred option for many of our borrowers. SouthStar Bank specializes in financing for new home builds in Central Texas. With loans available from land purchase, to a seamless construction draw process, and finally permanent financing, your lender will be there to guide you every step of the way. Talk to one of our qualified loan officers today.
IRA Non-Recourse Loans | SouthStar Bank Consider the following scenario: You want to buy real estate using your self-directed IRA. The non-recourse loan is applied for by your IRA or retirement plan and the debt is secured by real estate. Some of your IRA money and the non-recourse loan are used to purchase the property, leaving the rest of your IRA funds invested and earning interest. For example, let’s say you find an investment property for $200,000 and have $200,000 in your IRA. You don’t use all the money in your IRA, but maybe $100,000, then you can get a non-recourse loan in the name of the self-directed IRA to make up the difference. Your IRA now has $100,000 in it, which is earning interest and growing. These loans are often utilized to provide you with additional funds in the event that your property requires repairs or upgrades, or to invest in commercial real estate. Taking out a non-recourse loan allows you to diversify your investing portfolio rather than putting all of your eggs in one basket. It’s a huge win for you and your retirement account. By leveraging the bank’s money, non-recourse lending enhances your IRA. Furthermore, the IRA’s money is safeguarded and can be used for other investments. How Do Non-Recourse Loans Work? When you have a small IRA or just don’t have enough funds to invest in real estate, your IRA can get a non-recourse mortgage loan. The non-recourse loan is a loan in the name of the IRA, secured by collateral (usually the property being purchased). The loan is based on the value of the real estate investment and in most situations, the IRA holder’s credit does not play a role in the IRA’s eligibility. Borrow What You Need There is no minimum or maximum loan amount at SouthStar Bank. The loan is in your IRA’s name and the amount you can borrow is determined by the value of your real estate investment. SouthStar Bank offers non-recourse IRA loans for single-family houses and condominiums (2-4 units). Keep in mind that the property’s net operational income/cash flow must be sufficient to cover loan payments. A percentage of the purchase price must be vested in a self-directed IRA for eligible borrowers. Your non-recourse IRA loan down payment will be determined by the property you buy, its condition and estimated cash flow. A 40 percent down payment is usually required by SouthStar Bank. Non-Recourse Loan Benefits A non-recourse loan, as mentioned above, is a form of loan that you can take out using your IRA to buy real estate investments. Your IRA owns these loans, which are subject to UDFI (unrelated debt-financed income) and must be returned through your IRA. Non-recourse loans have other advantages than helping you finance your real estate venture. Your IRA, not you, is responsible for your loan When you open a non-recourse loan, your IRA owns it, not you, which means that you will not be held personally liable should anything happen over […]
Jesica Garza, Vice President of Lending| SouthStar Bank Georgetown Jesica Garza is the Vice President of Lending at the Georgetown Branch, specializing in land and construction financing. An alumna of Texas State University, her expertise, and personable skills allow her to be a resource and provide solutions to people looking to move their lives and dreams forward. A major career highlight for Jesica was when she made the top of the loan production leaderboard. Jesica’s husband is the Founder and Executive Director of Flatwater Foundation. The organization pays for 100% of the cost of therapy for those working to cope with a cancer diagnosis. Together, Jesica and her husband spend their time in the community fundraising and raising awareness of the importance of mental health. One cancer diagnosis can cause waves in all directions, and the hope is to bring families back to the calm, serenity of Flatwater. At home, Jesica enjoys snuggling with her Kindle to read the newest fantasy or mystery thriller novel, riding her Peloton, and hanging out with her two kids. Some of their favorite family activities include having dance parties, swimming, and watching “Funny News,” better known as America’s Funniest Home Videos. A little-known secret about Jesica is that when she was 20 years old, she backpacked across Eastern Europe for three months. She visited 12 countries with three changes of clothes and no itinerary. She hopes to one day share her experiences with her children and live abroad. Jesica Garza NMLS# 1508061
Finding the Most Qualified Mortgage Lender Starts Here Most Qualified Mortgage Lender | SouthStar Bank SouthStar Bank designs a home loan experience specifically for you. We realize you’re one of a kind. Your mortgage should be too. If you want the opportunity to see what’s possible for your mortgage lending future, start here. We pride ourselves on having the ability to provide traditional local bank service with big bank opportunities. Our traditional mortgage lending offers extensive options to serve you better such as: Star Advantage Program: Home loans for unique situations (also known as Portfolio Loans) Traditional Fixed and Variable Rate Mortgages: Conventional (Fannie Mae & Freddie Mac), FHA, Jumbo, Rural Living, USDA, VA Low Down Rural Acreage Refinance Interim Construction to Permanent Financing Trust a mortgage banker in your community that can guide you through the process Close to home, a mortgage banker can be a reliable ally. They will take the time to get to know you and personalize lending solutions to your specific needs. It doesn’t have to be tough to get a mortgage loan. Your Mortgage Loan Officer will work with you to gather the necessary documentation for a loan decision. Although different loan types are available, the application and review process is much the same. To give you a better idea of what to expect, here’s a synopsis of the mortgage loan process: 1. Application Your MLO will work with you to finish your application and gather any papers required for underwriter assessment. Regulatory disclosures are made when needed. 2. Pre- Approval To make an initial credit decision, the Underwriter will analyze your application and paperwork. If the loan is initially authorized, your loan officer will advise you on the conditions that must be met in order for the loan to be issued, and collect any additional paperwork as required. Many real estate agents will require you to complete this step prior to viewing properties, especially in competitive Central Texas markets such as Austin. Pre-approval will give you an accurate understanding of budget and allow you to make a quick, competitive offer when you find the property. 3. Appraisal Once a property is selected, the Appraisal Reviewer and SouthStar Bank will organize the receipt of the property appraisal. The appraisal and estimated value of the property will be reviewed by the Appraisal Reviewer. You will receive a copy of the appraisal once it has been accepted. 4. Approved for Closing The Processor will re-submit the file to underwriting for final evaluation once all of the conditions have been completed. The Loan Closer will compile and submit the loan closing document package after final approval is received. 5. Ready for Closing Your loan officer will walk you through the final numbers and disclosures and answer any questions you may have. The Closing Agent will confirm the amounts required to close with you and set a date for the closing, at which time you will sign the final loan documents. Get started today! Buying a home is no easy task. There are piles […]
Shirley Sears, Vice President of Lending | SouthStar Bank Leander Shirley Sears is a native Texan born in Fort Worth. She has been a resident of the Cedar Park/Georgetown area for the last 35 years, where she raised her three children with her husband, Chris. In her role with the SouthStar Bank Leander team, Shirley will specialize in refinances, construction financing, and mortgage lending. While Shirley enjoys helping her customers build their dream homes, she loves building relationships with them even more. Making her clients feel comfortable and building trust with them is Shirley’s top priority. “A home is a place of comfort and peace,” she says. “Being able to help my customers fund their refuge is the ultimate reward.” In the professional community, Shirley is involved in Professional Women of Williamson County and the Williamson County Association of Realtors. At home, she enjoys exercising, listening to live music, being outside by any body of water, and spending time with her family. Welcome Shirley! NMLS# 1464584
Tyler Lucas, Vice President of Lending | SouthStar Bank Southwest Austin Tyler Lucas is a Vice President of Lending located in Southwest Austin. An alum of Texas Tech and Western Governors University, Tyler has spent the last ten years in the banking/financial services industry, with most of his experience focusing on commercial lending. For him, the best part of his job is being his customers’ trusted advisor for achieving their dreams. “I truly love and have a passion for helping people,” he says. “Whether they are an individual buying their dream home or a small business owner looking to expand, I will always strive to help them accomplish their goals.” In the Austin community, Tyler is a member of the Texas Tech Alumni Association and the Risk Management Association. He is also a member of the Young Men’s Business League, a social service organization for young professionals. Away from work, Tyler enjoys checking out the Austin live music scene, fly fishing, cheering on his beloved Red Raiders, and spending time with his wife Wesley and their two children, Warren and Wyatt. Welcome to the SouthStar Bank family, Tyler! NMLS# 2118548
Texas Truck and Trailer is an Austin-based company owned and operated by Tyler, Terry, and Kari French. Formerly LINE-X of Austin, the organization began in 2017 as a franchise of Line-X® supplying tough, quality bed liners. The LINE-X brand was important to Tyler as he began his pursuit into business ownership. A former military service member and in transportation and logistics business, Tyler acknowledged the value in Line-X’s proven formula for truck bedliners with the toughness and serious protection to meet truck owners’ expectations. Since beginning operations in 2017, the French family has expanded to offer an extensive line of full off-road and after-market truck accessories including lift kits, running boards, flat beds, wheels and tires, performance goods and much more. Texas Truck & Trailer of Austin is a local source for rugged results and complete satisfaction when it comes to bringing your dream vehicle to life. With a team of experts and quality products from proven manufacturers, they can supply the right truck accessories for the job. When the French family was ready to expand their company into the greater Austin area, they looked to their local community bank. Just down the road from SouthStar Bank in Leander, Mr. French was able to meet with SVP and SBA lender, Amanda Aaron. Amanda’s knowledge and expertise with the local market and with small business lending made the French family feel they had found the right fit. With an SBA 7a loan, Texas Truck and Trailer was able to expand current operations through real estate and business acquisition – more than doubling its existing footprint. The move allowed Line X to cover 90% of the MSA through strategic locations in North and Central Austin. The expansion also allowed them to take on fleet work to accommodate servicing of up to 100 commercial trucks at a time. “Customer service is lost in many industries, and I didn’t feel that way at SouthStar Bank,” says Tyler. “They have a small, family-friendly feel that you don’t get anywhere else.” Congratulations on your expansion Texas Truck and Trailer! CONTACTS: Texas Truck & Trailer North (Line X of Austin) 10209 E Crystal Falls Pkwy Leander, TX 78641 512.528.6038 Email: firstname.lastname@example.org Texas Truck & Trailer East (Third Coast Vans & Conversions) 9621 N Interstate 35 Frontage Rd, Austin, TX 78753 512.444.8677 Email: email@example.com SouthStar Bank Amanda Aaron, SVP/Branch Executive, NMLS# 1819235 | p: 512.456.0035 | m: 512.645.7902 | firstname.lastname@example.org