Construction Loan Chances...

[KeithW]

I have been patiently waiting for my scores to improve. With the scores listed below what are my chances of getting a construction loan? We are wanting to build for around $150,000 and we have property we own worth around $20,000. We also have our current house that we own that will give us around $35K when we sell it.

Also what is the best way to look for financing? Should we let the builder find us financing or should we shop around on our own? We are thinking FHA possibly.

We also have saved up $15,000 in cash.

[swtneka]

I'M no expert but from what i have been reading from your score being mid 640 and your savings u will be ok with fha but not knowing whats on your report keeping you from being higher is where the dilemma comes in. Need a lil more info to give you what u r trying to hear.

[KeithW]

Thanks for the reply.

My report is pretty clean except for some medical collections. Most recent one is about a year old and they belonged to my wife and got put on mine as a joint. There seems to be some confusion on wether this is correct, but the collection agency refuses to remove them. My most recent late payment was back in 2009. I do have a 48% utilization on my cards that I plan to pay down in the next month and get to under 30%.

Keith

[KeithW]

Would we be better off with a local bank or a larger national bank? Would a mortgage broker be a good choice? I really need some sound advice on where to start.

[swtneka]

Usually when u have anything recent within 24 months UW frown upon that and want that paid b4 they agree to a loan and if u can get that uti on your cc down that will give u a gr8 boost and a gr8 interest rate.