Anyone in the southern NH area familiar with one time closing construction loans? If so, what advice would you give to someone that put a deposit on a 2 acre plot subdivision that has all the boxes checked for land, except they don't have great credit (600 fico average) but wants to do it by themselves? They would have "skin in the game" but need to know steps involved to make the "deal" happen. For example.. 200k for 2 acre lot. $250k build and has a drawing. What do you think are the steps for the "best outcome" they should make knowing this information? Taking in consideration taxes, no VA loans, below average credit? All information is helpful.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
3y
One of the biggest wholesale lenders (read: works through mortgage brokers, not with consumers directly) in the country came out with a super sexy one time close construction loan just last week with only 5% down (interest only payments during construction, optional one-time rate float down at end of construction without having to re-close/qualify, and for the GC 1st draw is AT closing meaning no need for the GC to rack up another $100k in credit card debt -- like I said, super sexy)... but min FICO score (for now) is 700. What's holding that back?
I would say, obviously poor prior decisions. So in terms of credit scores, is there a way to pull off said terms with a not so average credit score I think is what is asked. Credit scores equal how likely you are to pay the bank I get that. Any other information is welcome