topic Re: contruction loan in Mortgage Loans

contruction loan

Anonymous — Wed, 01 Jul 2009 20:40:36 GMT

anyone know what kind of credit score you need to get a contruction loan

Re: contruction loan

ShanetheMortgageMan — Wed, 01 Jul 2009 20:47:30 GMT

680 to 720 is what I've seen lately. Are you talking about a loan that would finance the construction (board, nails, labor) of the home, paying various contractors along the way according to a set building/payout schedule?

Re: contruction loan

Anonymous — Wed, 01 Jul 2009 21:29:11 GMT

yes

Re: contruction loan

Anonymous — Wed, 01 Jul 2009 21:36:24 GMT

and if you can tell me what is the avg cost of closing a contruction loan that you have seen so far

Re: contruction loan

ShanetheMortgageMan — Wed, 01 Jul 2009 22:59:37 GMT

Cost as in how much it cost to build? Or costs as in closing costs? How much to build would depend on regional prices for materials and what not, for closing costs, the last time I did a construction loan was over a year ago, and the closing costs are about $1-2k more than a normal closing costs due to the post-closing inspections, date-downs from title, additional insurance coverage needed during course of construction, etc.

Re: contruction loan

Anonymous — Thu, 02 Jul 2009 00:42:55 GMT

the builder is charging me 136000 to build, that includes everything but the fridge. my lo said i wont have any problems getting a fha loan but the contruction loan might be tough. my middle score is 630 and my income is 50000 yearly.

Re: contruction loan

Anonymous — Thu, 02 Jul 2009 01:02:18 GMT

We have a construction loan and went FHA. Our mid scores were 681 and 657. Our GFE for closing cost were 5600 I think. It was not difficult to get a construction loan for us. We did have some equity in our land since we have owned it for a few years now. Good luck to you!

Re: contruction loan

Anonymous — Thu, 02 Jul 2009 01:09:56 GMT

if not being too formal what was the price of your loan

Re: contruction loan

Anonymous — Thu, 02 Jul 2009 01:13:59 GMT

Sorry, I forgot to include that. $213000.

Re: contruction loan

Anonymous — Thu, 02 Jul 2009 01:20:01 GMT

is the contruction loan more credit score driven or is it just like any other home loan. i havent had any lates in over a year and all of my accounts are current

Re: contruction loan

Anonymous — Thu, 02 Jul 2009 01:21:10 GMT

and i recently paid off 2 bank loans so im thinking that should increase my score more

Re: contruction loan

Anonymous — Thu, 02 Jul 2009 01:33:09 GMT

In my opinion while it is score driven it will be important how much debt you already have, employment history and such. When I went to our local bank and applied I took all of my documents, we had very little debt, under 38% including new mortgage, no lates in 2 years, although a medical collection about 18 months ago, I had been on my job 4 years and DH 1.5 years. I walked out of the bank in an hour with a preapproval and GFE. From there we had appraisals, surveys, etc, had our first closing and broke ground on our home.

If you have a bank in mind that you are going to use you might just sit down with them and tell them where you stand at this point. They will tell you their requirements.

Hope that is helpful. Just ask if you have more questions. I wish you lots of luck!

Re: contruction loan

Anonymous — Thu, 02 Jul 2009 01:46:30 GMT

i been on my job for 11 yrs and my income to debt is what worries me . i have 2 car payments -772 and child support 200 monthly thats my only debt

Re: contruction loan

Anonymous — Thu, 02 Jul 2009 01:48:55 GMT

i will have to be on the loan alone cause my wife is self employed. and she only been in business for 5 months