If you are building a new home and need financing, you may think that you need a high credit score to get a home construction loan. This is simply not the case. A credit score as low as 680 is enough to secure a new home construction loan through First United Bank.
Challenges of Construction Loans
In most cases, getting a construction loan comes with certain challenges. Since there is no finished house to use as collateral, most lenders will require a fairly high credit score as well as a high down payment before approving the loan. These requirements are in place to reduce the risk and protect the lender in the case of a default.
Lenders will require a timeline for each stage of construction in addition to information about the contractor and building specifications. If you can’t provide this information or meet deadlines, this could jeopardize your ability to get a home construction loan.
A 680 Credit Score
Given some of the challenges you might face getting a construction loan from most lenders, you might feel like you need an absolutely perfect credit score to get a construction loan. However, you only need a credit score of 680 to apply for a home construction loan from First United Mortgage Group.
680 is usually considered to be at the low end of the “good” range of credit scores. Each lender determines their level of risk tolerance based on a variety of factors. With Anna DeCamp and First United Mortgage, qualified customers need only a 680 credit score to get a home construction loan.
Improving Credit and Qualifying
If your credit score is still below that level, there are ways to bounce back. Repaying all debts and responsibly using credit can help improve your score over time. You may want to consider using a credit repair service to help you rebuild your credit faster.
If you have a credit score of 680 or higher, Anna DeCamp at First United Bank can assist you with a home construction loan. To apply or learn more, contact Anna DeCamp today!