Construction to permanent loan questions

[Anonymous]

I’m finally ready to apply for a mortgage, I want to build because the inventory in my area is limited and there are no big construction firms in my area. I just talked to a banker today and he told me that to qualify for this loan I have to have a 740 score, 20% and 10% reserves plus closing cost or 700 score, 10% and 10% reserves plus closing cost. I was prepared for the 20% which I have and paying closing cost which I also have but I’m just under 700 score and I don’t have any other reserves and I don’t have the land yet. My question is this with all banks or just this one. If anyone has gotten this type of loan what what were the requirements to qualify.

[CGeorge]

Pretty much...we got a construction loan in 2015 - and the requirements were stringent. And, then, there were still many, many hoops to jump through. My huband had a credit score of 825+. We already owned the land. And, we contracted with a construction company to build the house. The bank followed up closely with the construction company as the house progressed. Getting a construction loan is very different than getting a mortgage on an existing home. Best of luck to you!

[kc0039]

Lender dependent. I have a 5% down program for construction but the person constructing must be over 700 score for that. If it's under 700, it's 20% down. Both require at least 6 months reserves. It's limited to a few states 

[Anonymous]

I would shop around with local banks. We have a construction to perm. 4.2% interest rate, 5% down and reserves were never mentioned. We have reserves but we were never told an amount we had to have. Lowest mid mortgage score was 696. Many banks in my area do this. I'm in MN. We had bought the land but rolled over $42,000 into our loan and they used our equity towards our 5% down. It was seriously the easiest process, I was worried when I had heard horror stories but was very happy with our lender. I would call around for sure!