Construction Loan Qualifications

[Anonymous]

I am trying to build a home as an Owner/Builder on a piece of property I own free and clear in a suburban neighborhood. I have a 685 EX, 646 TU, and 587 EQ. Each time I try to get approved with IndyMac Bank the standards get higher and higher. It was first a middle score of 620. Then due to the subprime crisis the new middle was 640 two weeks ago. Today I was informed that the new middle score is now a 680. Are there any other construction lenders that will touch me? I have documented income and no lates for 16 months.

[Anonymous]

680-

Are you doing zero down?

[Cooneyca]

Have you tried National City?  I am a couple weeks from closing on my construction loan with them - 5% down and mid score 648.  They do Fannie Mae secured loans. 

Message Edited by Cooneyca on 09-06-2007 07:43 PM

Message Edited by Cooneyca on 09-06-2007 07:51 PM

[Anonymous]

I have about 20k in cash reserves (liquid) and with 401k, stock account, the loan officer said I had 19 months in reserves. He didn't even ask about how much down. I thought my paid for building lot was enough.

I will try National City Bank. Thanks for the help!

[Cooneyca]

I believe Indymac is under a lot of bad debt pressure.  I went to them late in the game when I was shopping around.  When talking to the construction loan person, her first question was "are you a first-time home buyer?"  When my answer was yes, she said there was no need to go any further.  They do not do construction loans to first-timers.  Didn't care about my income, savings (which, btw was in their bank in the form of a CD), or credit score - never even go that far.  Sounds like there is an awful lot of "executive decision" making going on over there.  The name makes it sound like a midwest bank, but I believe they are based in California. 

Same thing happened with Countrywide, I had a nice pre-qualifying talk one week.  Loan guy said absolutely no problem with my numbers/situation.  The next week (not so coincidentally on the same day that BoA announced they were lending them all that money) I was no longer qualified.  I would need a minimum score of 660 AND have 20% down.

Good luck!