Posted on: 19th Aug, 2007 06:49 pm
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.
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.
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.
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.
