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Old 08-12-2012, 08:51 AM
 
55 posts, read 283,845 times
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Is there anywhere these days that will grant a construction loan to a 650+ credit score? I've read that both FHA and Rural Development with finance the 'end loan' but I don't really understand the financing in the middle. This home is to be a 1700sq sitting on 10 acres in a rural area. The homes in the area of similar build have a value of about $160,000. We would be looking for a total loan amount of about $80,000 and can provide up to 20% down. I know GreenStone wants a 700 score but after financing the land my score dropped considerably. (Which I've been told with be restored within a year of on time payments?)
Thanks!
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Old 08-13-2012, 08:59 AM
 
Location: Grand Rapids Metro
8,882 posts, read 19,876,852 times
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Quote:
Originally Posted by jkels View Post
Is there anywhere these days that will grant a construction loan to a 650+ credit score? I've read that both FHA and Rural Development with finance the 'end loan' but I don't really understand the financing in the middle. This home is to be a 1700sq sitting on 10 acres in a rural area. The homes in the area of similar build have a value of about $160,000. We would be looking for a total loan amount of about $80,000 and can provide up to 20% down. I know GreenStone wants a 700 score but after financing the land my score dropped considerably. (Which I've been told with be restored within a year of on time payments?)
Thanks!
Go talk to a locally owned bank in your area (not one of the big ones.) We did something very similar with our first home we built about 12 years ago. Seems like it was FHA, construction loan, about the same price range you're talking about, and our credit scores were OK (not great, but OK).
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