“There’s a limited quantity of loan providers that do custom structure, because it’s a distinct segment equipment,” told you Fred Bolstad, just who guides shopping lending to have You.

On lender’s perspective, a construction mortgage are riskier than a mortgage because there is no collateral – no family – to help you safe they. Because of that, lenders enforce strict certification requirements. So you’re able to sign off on a housing loan, extremely financial institutions inquire about a credit rating with a minimum of 680 – no less than fifty products more than what is generally you’ll need for a conventional mortgage. (more…)