Fico Scores, construction loan, what are the chances?

[Anonymous]

Well today, I got a new Equifax, and it showed a 636.  Not great, but good enough to qualify for a USDA loan if I were buying a house.  If it were a Fico 04 that is.

The problem is, I am building a house.  I am using a local lender, so perhaps things won't work like they would for major banks, but I just kind of want some opinions.  If my Fico 08 stays in this rang for the rest of my scores, what do you think the chances of the loan getting approved are?  What are some general things I need to watch out for when it comes to scoring for Mortgages versus credit cards?

Thank you in advance for any words of advice or encouragement.

[Anonymous]

I have been wondering the same thing. I read fico 04 is pulled for mortgages rather than fico 08.

[DallasLoanGuy]

Haven't done a construction loan in a long time. But when I did, they were strickly a-paper. 700+ scores.

Buying a spec home is easier

[Anonymous]

Dallas,

That very well may be the case, I am hoping it is not.  I contacted the bank a couple of months ago to talk about the possibilities and they didn't dismiss me out of hand when I told them my FAKO's (which were lower than my FICO's are currently).  I am still hopeful.  It might be a cultural difference as well, here in Maine people routinely build their own homes and subcontract only a couple of items.   A couple of things in my favor of course is that we already own the land (collectively, it is my wife's family farm) and that they do an 80/20 loan based on the projected finished value of the house. 

I am still hopeful, but incredibly nervous.