Credit Requirements
It goes without saying that knowing your credit standing is important. Credit plays a major role in the construction process; obtaining loans, qualifying for a good rates on insurance and being extended credit by local suppliers are all are impacted by credit rating. Since most construction lenders require a 620 credit score or better for qualification, it’s important to know your standing before applying for a loan. Some niche lenders will loan on scores less than 620. These loans typically charge higher interest rates and substantial equity or money down is required.
Even if a person has a 620 credit score they still can be denied a loan if their mortgage is reporting a 30 day late in the last year on either a first or second mortgage, HELOCs included.
If you have questions about your credit or haven’t applied for a loan lately it’s well advised to pull a credit report. If you would like to more about credit facts and fallacies follow this link to MyFico.com Understand How Credit Scoring Works! .
The Modern Builder endorses MyFico.com as the best online credit information source and an excellent resource for credit resolution.
