Having bad credit such as defaults, judgments, and writs listed on your credit file does not mean that you cannot get a construction loan.
This could be a great option for those looking to build their dream home but fall outside the lending guidelines of the standard banks and lenders due to bad credit issues and wouldn’t usually qualify for a construction loan.
Yes, people with bad credit may be able to get a construction loan. But you will need to meet all the lender’s criteria.
You may be able to borrow up to 90% for full doc applicants and
80% for low doc applicants, of the fixed price and land value.
Fee capitalization up to the maximum loan to value ratio limits allowed.
Specialist lenders will accept applicants with:
Lenders will consider applicants one day after they have discharged from bankruptcy.
No, you will not require evidence of genuine savings including borrowed funds to complete for this construction loan. You can use a gift, bonus or recently obtained funds to cover the deposit.
Yes, both owner-occupier home construction loans and investment property construction loans are available even if you have a past credit issue.
Loan terms of up to 40 years are available for this construction loan.
Only a variable interest rate which is interest only (I/O) on balance of loan during the construction period.
The construction loan converts to home loan with principal and interest (P&I) repayments on completion of construction.
Bad credit construction loans require copies of the following documents prior to the date of the first progress payment:
Other bad credit home loan types
Do you have a credit impairment but don’t fit the criteria above? Find out about other types of bad credit home loans.
Find out all about what you need to know about construction loans.
Owner builder loans
Find out all about what you need to know about owner builder construction loans.
Oak Laurel – Bad credit home loans made easy!