123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Others >> View Article

How To Get A Construction Loan With Bad Credit

Profile Picture
By Author: Michael Landonson
Total Articles: 114
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

When you need construction loans, bad credit can really limit your options. Loans of all kinds are becoming more difficult to obtain because the standards of lending are getting harder to meet. That doesn't necessarily mean you'll have to put your dreams on hold, but you will need to take a few steps before you apply for a construction loan. Janks Construction can help you with all of your construction needs.

Construction loans are products offered by banks and other lenders. A construction loan can be used to build your first home, build a second home while you still reside in your primary residence, or make additions or repairs to an existing home. Construction loans typically have short durations, and some are simply converted to mortgages once the construction has been completed.

As with any loan, your chances of being approved will increase if you can minimize the risk to the lender. But what if you already have a bad credit rating? Fortunately, there are plenty of ways to get the construction loan you need, regardless of your credit rating.

Having bad credit does not have to prevent borrowers from ...
... getting a construction loan. Many lenders give their clients the opportunity to get a construction loan. Using a loan of this nature can allow you to have a new house constructed, a vacation home built or even repair the home in which you are currently living. Normally, a shorter length characterizes construction loans and borrowers often decide to transition into a more permanent type mortgage after the construction has taken place. The steps below will show how a person with less than stellar credit can obtain a construction loan.

Difficulty: Moderate

Instructions

1. Find out your credit score. Go to a website on the Internet that can provide you with your personal credit score, or ask your mortgage broker for a copy of your credit report. Look over your credit report to determine if there are any errors. If you have any mistakes, contact the credit bureau directly to have them removed. Removing mistakes which appear on your report can boost your credit score.

2. Obtain a secured loan. Understand that you will have to put up your current home as a means of security. If you do not pay your construction loan lender, that lender will have the chance to foreclose on your home, and you may end up losing your personal property. Be prepared to take on that risk if you are attempting to get a secured loan. Consider using any land that you own, if you do not have a house to use as security.

3. Put down a substantial sum of money. Putting more money down will allow the lender to see that you are serious about the construction loan because you are putting your own money at risk. Realize that you can lose this money if you default on the construction loan at a later date. Remember the more money that you put down, the more seriously you will be taken by each potential lending institution.

4. Perform your due diligence. Contact any local credit unions that are in your area. Speak directly to the head of the bank where your checking account is located. Use these relationships to prove your credibility to the lender. If you have a been loyal customer at the bank, kept a certain balance each month in your accounts and have had an account at their branch for a long time, that may go a long way toward proving you are a worthy loan candidate.

Improve your home with Janks Construction

Read more at the source:
ehow dot com/how_6130740_construction-loan-bad-credit
Janks Construction was founded 12 years ago by Steve Janks. Janks Construction has over 25 years experience in converting homes to dream homes in the San Diego area.

Total Views: 231Word Count: 627See All articles From Author

Add Comment

Others Articles

1. Prayer Against Evil Spirits And Powers: A Spiritual Shield Against Darkness
Author: Exorcism Demon Casting

2. Top Safety Tips For Operating Benchtop Catering Equipment In Sydney & Brisbane
Author: Leading Catering

3. Fighting Demonic Attacks: Understanding And Overcoming Spiritual Warfare
Author: Exorcism Demon Casting

4. Top 5 Reasons To Pursue A Weld Inspection Certification For Career Growth
Author: Bradly Franklin

5. Vashikaran Astrologer In Kolhapur
Author: astrology53

6. Symptoms Of Demonic Possession: Understanding The Unseen
Author: Exorcism Demon Casting

7. 6.6 Kw Solar System: Why It’s A Game-changer For Small To Medium Homes
Author: Solar Junction

8. Monoline Lenders Vancouver – Why Should You Choose Them
Author: Dominion Lending Centres Ratefair

9. Step-by-step Ghost Mannequin Photo Editing Tutorial For Stunning Apparel Images
Author: Robert Charles

10. Key Hospitality Technology Innovations You Should Be Ready For In 2025
Author: Orson Amiri

11. Emerging Media And Entertainment Tech: Are You Ready For The Future
Author: Orson Amiri

12. Window Tinting Auckland: Add A Feeling Of Comfort And Privateness To Your Home
Author: Tinting Experts

13. Top 10 Welding Rod Electrodes Manufacturers In India
Author: SUPERON is one of India’s largest manufacturers of

14. Know About The Future Of Cnc Machining
Author: Ryan

15. Best Astrologer In Tirunelveli
Author: srivaishnavimatha

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: