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Employee Spotlight- Kathryn Davis

Kathryn Davis, Personal Banker| SouthStar Bank Leander

Kathryn Davis is a Personal Banker at the SouthStar Bank Leander Branch. She joined the team in 2020 with three years of industry experience. Throughout her time with the bank, Kathryn is most proud of the amount of professional growth she has made. She enjoys learning something new every day in her role and hopes to continue to grow in her knowledge of the banking industry. Away from the bank, Kathryn enjoys honing her skills in nature photography, participating in community outreach programs, and playing with her dog, Mercy.

Build Your Future with a SouthStar Bank Construction Loan

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 – Get Started with Us 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 the life of the loan.

There Is No Recourse Against You if You Default

If you default on your non-recourse IRA loan, there will be no financial consequences, unlike if you default on a recourse loan. You and your IRA are both protected, so the lender cannot take anything from you except your collateral.

Because everyone’s circumstance is different, talk to a lending professional at SouthStar Bank to see if a non-recourse IRA loan is correct for you.

SouthStar Bank is currently accepting applications for properties within the state of Texas only.

Contact our IRA Lending Specialist today!

Employee Spotlight- Jesica Garza

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

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 of paperwork to fill out, finances to get in order, mortgage lenders to call, realtors to Seize the moment and borrow from a mortgage lender you can trust. Whether you need a traditional home loan, or something more unique, the experts at SouthStar bank are here to help. Contact us today, or get started on your pre-approval application online!

Welcome Shirley Sears

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