Financing in 76179>Question Details

Ky Derby, Other/Just Looking in Lexington, KY

Is there any hope of me getting a major construction loan? My credit score is low 585 to high 607 my girlfriend score are all above 700 income 230,000

Asked by Ky Derby, Lexington, KY Wed Mar 13, 2013

for both of us. have no debt ,credit cards no balance. bad credit came from my past . Is any lender going to work with me.

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Rick DeVoss’ answer
Well, The KY Derby may be over, but your problems are probably not. I was just looking at your information again, and realized that we missed a suggestion the first time this came out two months ago.

If your girlfriend's scores are that high, you just need to let her apply for the loan, ~assuming her income is high enough to get the amount you want. (Maybe you could scale back your dreams, and buy a smaller house this year, then get a bigger one later on.) You may not be able to put your name on it, unless you find a lender who will make a loan with a score below 600. (There are a few.)

Part of your problem is that (you said) you have no credit card debt. You need to fill the car up with gas on a credit card (NOT debit) each time, and then pay the balance down each month on time. Leave a small balance on the account, but be sure it is below 30% of the credit limit on the card. This will raise your scores. Make sure your bank is reporting your payments to all 3 credit bureaus.

You really should buy an existing house, as it will be much easier to get financed. Think about making your second home a new one. (You could keep the first one as rental property.) ~Meanwhile, get with a Realtor in Lexington and get some good advice. You are wasting time on here...

Good luck to you both!

0 votes Thank Flag Link Sun May 5, 2013
Yes absolutely! You may want to look into an FHA or FHA 203K loan. Contact Home Loans For All. They can definitely help in this situation.
Web Reference:
1 vote Thank Flag Link Fri Apr 1, 2016
Yes FHA loans can finance you with a score as low as 580 with 3.5% down. Check out The Lenders Network they can get you to the right lenders to help you.

Good Luck!
1 vote Thank Flag Link Sun Aug 18, 2013
I have a great recommendation if your concerned about your credit report and score. Call 1-800-368-4193 make sure you ask for Alicia. Worked with her last year to help remove inaccurate items on my credit report. When I was first referred to her my score was 480, 432 & 466 after 1 month it went up 39 points and in about 5 months 109 points. She is very knowledgeable on ways to legally make both the credit bureaus and creditors do the right thing, and in doing so the items fell off my credit report its been 9 months now I'm at 755 750 and 720 with Experian, but I'm still a satisfied client all I did was follow her advice. Oh she also has portal access so I saw exactly what was being done with my credit and I was able to message her when I had questions from within the portal.
0 votes Thank Flag Link Sat Apr 2, 2016
Best next action is to ask a local Mortgage Broker by clicking "Find a Pro" in the main menu at the top of this website.
0 votes Thank Flag Link Sun May 5, 2013
Dear Mr. Derby,

I'm not sure we all understand your question. First of all, please specify the location of your real estate interest. Your return says "Lexington, KY", but you are posting this question in Fort Worth, 76179.

Tell me what you mean by a "major construction loan"...? Are you referring to building a house, or commercial developement, or what??

This would be easier if we were communicating directly by email, or phone. Please contact me, and I will try to help you. If you want to buy a house, I can get you a loan approved. But if you are talking about starting construction on some other type of project, the banks will probably not touch it. Let me know what it is you are trying to do, and I'll see if I can help you.

Best regards,

Rick DeVoss

ULTRA Real Estate Services

0 votes Thank Flag Link Wed Mar 13, 2013
For a construction loan the answer is likely no at this time. These loans present a much higher risk to the bank so without some substantial collateral a bank may very well not provide you with financing. However, if you are looking a financing a new home where the builder is handling the construction financing you may very well be in luck. I hope that helps. Please feel free to contact me directly if you have any additional questions.

John Straub
Keller Williams Realty
0 votes Thank Flag Link Wed Mar 13, 2013
Nothing is cast in concrete. There are some lenders writing loans below 620, but the terms will not be as good as for those whose credit scores are 640 or higher.

It would be helpful to have a reasonable down payment. Minimal (such as 3-1/2%) won't work. It also depends on what the nature of the derogatories are. If you have housing-related derogatory comments, it is unlikely anyone will help, except a hard-money lender.

"The past" is pretty vague. If you had a foreclosure less than 4 years ago, forget it. If you had a bankruptcy discharged less than 5 years ago, forget it. If the problems are from lates or collection (not from housing), then there is likely someone who will help, provided you have down payment of more than 5% of value, preferably 10% or more.

You posted this in 76179 (Saginaw, TX). I hope you posted it in the correct geographic area, because the market also plays a role in eligibility.

Truly, you should have taken the last couple of years to repair your credit, but perhaps you can hang on long enough to do so now. (Repair does not mean disputing correctly recorded derogatory comments, but rather getting new credit and managing it properly, while paying off old problems.)
If you did not do anything to re-establish credit, then your previous issues will remain as the only source of scoring: "if you have no credit but old, bad credit, then you'll have bad credit."
0 votes Thank Flag Link Wed Mar 13, 2013
Unfortunately no, you will need to work on your credit to be able to do anything. Keep rebuilding your credit and keep using your credit cards but keep the utilization levels low at or below 30%. It just takes time for your bad credit to have less of an impact on your total score. Usually once it falls outside of 24 months it is not having a major effect on your credit if you have established good credit since.

Hope this helps.

Don Groff
REALTOR® & Mortgage Broker
Austin Real Estate Pros | 360 Lending Group
office: 512.669.5599 mobile: 512.633.4157 |
0 votes Thank Flag Link Wed Mar 13, 2013
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