Where to start? Totally ignorant of the process...

[KeithW]

When our credit scores improve a little more we hope to build a house on our land. What is the best place to go for a mortgage considering our credit scores are on the low end? Should I go to a mortgage broker? My State Farm agent was pitching their mortgage options the other day. I own the land, which is worth a minimum of 25K and I have $30 equity in our current home which we own. I am wanting to build a house so I understand I would need a construction loan.

I am terribly ignorant about the process and know that is a recipe for getting taken advantage of. We are currently trying to improve our credit so we have a little time. I am currently working on digging out the site and pouring the foundation with cash I have so that we can get a smaller loan.

My worst fico score is about 590. I have no unpaid collections and haven't had any late payments in over 2 years. My wifes worst is 554 and she has a medical garnishment that we plan to pay off in the coming months.

[boomhower]

First you need to work and getting your reports sparkling clean and shiny.  Construction loans are extremely difficult these days and even more so with less than absolutely perfect credit.  I would try a broker so the options are as wide as they can be but with those scores it just likely isn't going to happen.  Pull your reports and try to get them straightened up.