Posted on: 23rd Apr, 2009 11:48 am
Is it possible to obtain a construction loan with credit scores in the mid 500s or are we doomed?...My husband and I just sold a house (which was in my name solely) and have enough cash to pay for the lot our home will be put on so we are only needing construction loan for home, well,septic, etc. and will be appraising lot and using that as downpayment. Out credit scores are in the mid 500s. My husband qualifies for 1st time homebuyer as he has not been on the title/deed of a home for five years now. Can you make suggestions please?
a couple of strikes against you right off the bat, lori...construction loans are plentiful rare these days - very limited market for them. also, scores below 600 are very rarely going to work for borrowers. now combine those two, and consider that when construction lending was actually active, minimum scores were well over 600.
i wish you well, but please be patient...work on those scores as rapidly as you can.
i wish you well, but please be patient...work on those scores as rapidly as you can.