Sub-Prime Constructio Loans

Guest 0.10 Dollars($)

Does anyone know of a sub-prime construction loan that would consider a 540 credit score? Credit score is low due to a family member with a chronic issue. The construction property was a gift from my parents valued between $45-80k. The house will cost around $200,000.00 to build, with a completed value around $300,000.00. Total income is around $100k/year.

ckalvesmaki · Posted: Sun Aug 19, 2007 7:46 pm Post subject:

how long ago was the property gifted to you? The only lender I am aware of that might consider this loan will only work with brokers not directly with the consumer.....and you must have been on title for at least 12 months.

larry · Joined: 27 Jun 2007 Posts: 3245 460.30 Dollars($)

Hi Jango,

Most lenders will require a credit score of 680 score to qualify for a construction loan. But there are some other lenders who may lend you a construction loan with a credit score as low as 540. You need to shop around with them. And in that case, you must have to make a larger amount of down payment. You may also have to pay a higher interest rate on the loan and a higher fee at the time of closing.

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