Good enough score to get a mortgage but not a construction loan.

[Tooliebell]

I feel so frustrated.  We would love to build a home on the property we currently live.  We have had the plans all drawn up and were working hard to get our score up enough.  I found one broker who had a lender who would do a construction loan for a 640 score.  PERFECT!  I get my score there, email her only to find out the construction loans have been put on hold!  GRRRRR!!!  I found one lender who will do a self build construction loan with a 680 score.  So I am trying to be patient and hoping to get my score there, but I am so worried that I will get there and another hurdle will be placed in front of me.

However, I did find out that I can get a modular put on our land with a basement with a score of 640.  GO figure!  I don't understand how this modular loan is less risky than a construction loan and we would have a better value with an stick built home than a modular.

I am not sure if we should just go with a modular and call it good or wait this storm out.  I have only been waiting for 10 years to do this!

[mamahearts]

We hit a little road block on our journey so I can relate (had a NSF on bank statement so have to wait longer to apply so I can give clean statement to lender). I let myself have a pity party last night and then resolved myself to keep working and I know it will be worth it.  

I think that if your heart is set on building then you should keep working on raising your score.  I've seen people here post about large points jumps.  You're so close, keep up the hard work and it's going to pay off!  I keep telling myself that.

[Tooliebell]

Will the NSF hurt your chances to get a mortgage? With scores like yours?

[Anonymous]

Why not get a personal loan and use the cash for construction?

[mamahearts]

Yes it can look pretty bad because it looks like I mismanage my finances.  Unfortunately, we've had an ongoing problem with NSF and I didn't realize the source of it until just a couple weeks ago.  We were getting billed twice for our gym membership.  The gym has reimbursed us for overbilling but they can't or won't do anything about the NSF fees.  It's ultimately our fault because we should've caught it sooner and also shouldn't have been so low in funds that the gym would throw us over the edge.  So I'm just dealing with it and trying to move forward.  I'm asking these people to lend me a large amount of money so I really want to look as good as possible as a candidate.   

I really wish you luck if you keep working towards your goal to build.  But maybe also look and see if there are any existing homes that will make you happy too.   

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Tooliebell wrote:

Will the NSF hurt your chances to get a mortgage? With scores like yours?

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[Booner72]

Hi, Toolibell - hang in there.  I agree that you will be happier if you get your real house - don't settle for something you have wanted for so long!  You'll get there.

[Tooliebell]

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@Anonymous wrote:

Why not get a personal loan and use the cash for construction?

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This is a great idea that I have been pondering.  I am going to see if my credit union will give me a loan that I can put collateral up for to get the house framed in.  Once that is done, I will get it appraised and try to do a home equity or refi with cash out to see if i can't finish it.

Worth a shot, eh?

[mamahearts]

That sounds like a great idea! Hope it works out for you!  I just talked to my loan officer and she said that I can submit a VOD in lieu of bank statements so we don't have to wait longer to apply.  Try to stay positive!

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@Tooliebell wrote:

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@Anonymous wrote:

Why not get a personal loan and use the cash for construction?

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This is a great idea that I have been pondering.  I am going to see if my credit union will give me a loan that I can put collateral up for to get the house framed in.  Once that is done, I will get it appraised and try to do a home equity or refi with cash out to see if i can't finish it.

Worth a shot, eh?

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