Platinum Lending Solutions / Case Study 06
Jumbo Construction Financing | Custom Home | Land Refinance
By Stacy Schlesinger | NMLS #252075
President & Mortgage Broker | Platinum Lending Solutions
At a glance
- The challenge
- Coordinate land debt, custom construction and an employment change.
- The approach
- Structure jumbo financing, construction draws and updated income qualification.
- The outcome
- $1.6 million in financing addressed the land note and construction plan.
Individual circumstances and results vary. All financing is subject to applicable requirements and lender approval.
After years of searching for a home that met their needs, my clients decided the right home wasn’t one they could buy. It was one they would have to build.
They found a piece of land and purchased it using private financing provided by the seller. Over the following year, they worked on designing a highly customized home that reflected exactly what they wanted.
When they were ready to begin construction, they needed a financing solution that could refinance the privately held land note and provide $1.6 million in jumbo construction financing for a home with an estimated completed value of $2.2 million.
And just when the financing was coming together, an unexpected employment change introduced another significant hurdle.
The Challenge: Financing a One-of-a-Kind Home
Jumbo construction loans can be difficult to source, particularly when a project doesn’t fit the standard parameters of traditional construction financing.
This transaction had several moving parts.
First, the borrowers already owned the building site, but the property was subject to a privately financed note that needed to be paid off.
Second, their custom home required a construction financing structure that could accommodate the project’s specific needs. The size and complexity of the home made the construction draw schedule an important consideration.
The borrowers needed more than a lender willing to finance a large loan amount. They needed financing that could account for the existing land debt, the construction requirements, and the timing of funding throughout the project.
The Financing Strategy
I worked to identify a jumbo construction financing option that could accommodate the size and complexity of the proposed home.
We structured a $1.6 million financing solution that included refinancing the existing privately held land note and providing funds for the construction project.
We also developed a customized construction draw schedule designed around the anticipated needs of the build.
Unlike a traditional home purchase, construction financing requires careful coordination of how funds will be released as construction progresses. With a highly customized home, that flexibility can be particularly important.
The financing was structured to address both the existing land obligation and the requirements of the new construction.
Then an unexpected complication arose.
The Unexpected Hurdle: A Major Employment Change
During the financing process, one of the borrowers experienced a significant change in employment.
After approximately 30 years in the same role, his position was reduced from full-time to part-time.
To maintain his income, he accepted a second part-time salaried position. Together, the two positions provided approximately the same total income he had earned previously.
From the borrower’s perspective, his overall income had remained consistent.
But from a mortgage underwriting perspective, the situation required another look.
His employment structure had changed from one long-established full-time position to two separate part-time salaried positions.
Even when total earnings remain similar, lenders must evaluate whether income meets the applicable documentation, stability, and continuance requirements.
The employment change required the borrowers to be requalified under their new circumstances.
Rather than assume the unchanged total income would satisfy underwriting, we addressed the situation directly.
A conversation between the borrower and the underwriter helped clarify the employment transition, the circumstances behind the change, and the borrower’s new income arrangement.
That communication was an important part of getting underwriting comfortable with the revised employment circumstances and allowing the financing process to move forward.
The Financing Outcome
The financing strategy addressed several distinct challenges within one transaction:
$1.6 million in jumbo construction financing for a highly customized home.
Refinancing of the existing privately held land note as part of the overall financing structure.
A customized construction draw schedule aligned with the anticipated needs of the project.
Requalification following a significant employment change, involving two part-time salaried positions rather than one long-established full-time role.
An estimated completed property value of $2.2 million, reflecting the scale of the proposed project.
This wasn’t simply a matter of finding a lender offering a large construction loan. It required coordinating the property’s existing financing, construction requirements, borrower qualifications, and an unexpected change in employment.
Stacy’s Insight: The Details Matter With Jumbo Construction Financing
What stands out to me about this transaction is how many separate pieces had to come together.
My clients had spent years trying to find the right home. When they finally decided to build, they had already invested substantial time in purchasing the land and designing a home specifically for their needs.
The financing needed to support that plan.
And when the employment change occurred, we couldn’t simply rely on the fact that the borrower was earning approximately the same amount of money.
We needed to address how that income would be evaluated under the lender’s underwriting requirements.
That’s an important distinction for borrowers considering a custom home.
Qualifying for a jumbo construction loan isn’t just about the loan amount. It’s about finding a financing structure that works for the property, the construction project, and the borrower’s actual circumstances.
Not every lender offers the same construction programs, draw flexibility, or underwriting requirements.
Understanding those differences can make a significant difference when planning a complex custom-home project.
Considering Building a Custom Home in Oregon or Washington?
If you’re planning to build a custom home, have already purchased land, or are having difficulty finding financing for a higher-value construction project, I may be able to help you explore options.
At Platinum Lending Solutions, I work with multiple lending sources, including options for jumbo construction financing and more complex mortgage scenarios.
The earlier we evaluate your financing needs, the better opportunity we have to understand the project’s requirements before significant commitments are made.
Or call (503) 222-4663.
Important Financing Information
This case study describes an individual mortgage transaction with identifying information omitted. Loan terms, qualification requirements, construction draw schedules, and underwriting decisions vary by lender and program. Maintaining a similar total income following an employment change does not guarantee that income will qualify for mortgage purposes. The estimated completed property value is not a guarantee of actual or appraised value. All financing is subject to applicable underwriting, credit, income, collateral, and project requirements. This is not a commitment to lend.
Stacy Schlesinger | NMLS #252075
President | Platinum Lending Solutions
NW Processing Group, Inc. DBA Platinum Lending Solutions
Company NMLS #251560
Oregon License #ML-4475 | Washington License #WA CL-251560
Equal Housing Opportunity.
