mortgage people help!!!!

[Anonymous]

here is the scoop.   We (husband and I) want to build a house.  We have the lot (valued around 20k) and about 5k cash.  We both make decent money (90k together) and have almost no debt.  maybe 500 on CC and an auto loan for about 2800 (210 per month) 2 student loans that total $3900.  we do have some bad marks on our credt but most of them are from 2002-2004.  Our scores are:

EQ 591  ex 545 TU 535- mine

EQ-656 ex 613 TU 619-his

with these scores and the few bads on our report what are the chances of getting a construction loan?  We only need around 90k to do this so we will ahve around a 30% down.  Any chance?  Also, I make about $2 per hour more then my H.  Will this hurt if they go off of my scores?

[ShanetheMortgageMan]

Construction loans will go off whoever has the lower scores, doesn't matter if one person makes $0 and the other makes $1,000,000, but if you don't need both incomes (which in your situation you might not) then you don't need to put everyone on the mortgage.  If you've owned the lot for 12 months or more then the current appraised value can be used as part of your down payment.  Most construction loan programs require 680-720 scores, but there is a program from Fannie Mae called HomeStyle that can approve with lower scores... it's just like qualifying for a normal Fannie Mae loan program.

[Anonymous]

thanks for the reply.  Is there a way to find out if there is a lender in my area that uses this program?  We really want to get this started ASAP

Thanks!!

[ShanetheMortgageMan]

You can use http://www.mortgagecontent.net/flApplication/fanniemae/findLender.jsp but it won't tell you which Fannie Mae approved lenders will do the HomeStyle product, you'd have to call them up individually.  It also doesn't have to be a lender in your state either, for example we've applied to do the HomeStyle program and we'd be able to offer it in multiple states.