Hey everyone. Hope you are having an amazing start to your week.
I wanted to give you a quick overview of my current situation, and see if you think I'll be able to get approved for a construction loan in Georgia:
FICO 8 Scores: 670 | 683 | 749
Equifax FICO Score 5: 633
TransUnion: FICO Score 4: 745
Experian FICO Score 2: 738
Credit Utilization: Currently at 33%
I have a few collections that have shown up recently on my credit. I'm pretty sure my FICO 4 and 2 are probably going to take a hit.
I have 2 collections from cell phone company in amounts of $242 and $45. Both of those have been paid. They were from a previous business I owned, and long story short I thought business partner had taken care of all these accounts.
There's an open one right now that showed up in September 2015 in the amount of $1,956 that I am currently in the process of disputing because to my knowledge I don't owe that.
My current immediatel goal is to pay down my credit cards to less than 10% utilization in the next 4-6 months. I'm making great progress so far.
The FICO simulator has my Equifax FICO score increasing from 670-753 if I stick with my goal in about 6 months.
My question is. We're looking to sell our current home and build a $200,000 house on 3 acres we own.
The land is paid for. It's valued at approximately $41,000.
Assuming my FICO 4 and 2 are going to take a hit because of the recent collections (don't think it's updated yet with these collections), do you think my current plan to get credit utilization down to below 10%, coupled with 6 more months of on time payments, land equity, and around $30,000 in cash would put me in a position to get approved for a construction loan?
Appreciate you all so much for your comments and wisdom.
