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Oregon construction Loans and Bad Credit

Oregon construction Loans and Bad Credit

Many people have considered building their own home but unfortunately not everyone possesses a stellar credit rating. The question has been asked in the past as to how easy is it to get Oregon construction loans with bad credit. Considering how tumultuous the economic downturn has been and how virtually everyone has been especially concerning their credit scores, it’s little wonder why people are asking the question about securing a construction loan with less than perfect credit.

The unfortunate answer is that in today’s lending climate, getting oregon home construction loans with bad credit is virtually impossible. The sad fact is that people with bad credit are not the only ones being singled out when it comes to securing either a standard home mortgage or construction loans. This scrutiny is more a byproduct of lending institutions losing significant amounts of money on bad loans due to home buying and home construction.

In the past, construction loan rates oregon , while higher than loan rates may be today, were in line with inflation and the lending environment was much more relaxed. People with bumpy credit could still gain approval for construction loans in the state of Oregon. Fast forward 3 to 5 years to today and banks have become extremely reluctant to lend. Even people with stellar credit who meet or exceed the recommendations set forth by the lending institutions for procurement of construction loans are sometimes turned down.

The best option that you have is to spend the time rebuilding your credit. In addition to that, you might want to take time to build up your savings in order to present an even larger down payment for your construction loan than the minimum required by the bank. While this may not seal the deal on your construction loan, even if your credit is not pristine, a larger down payment can be stronger determining factor in a bank approving or denying your application for a construction loan.

Construction loans have always been a bit more difficult to get than your average home mortgage and with today’s restrictive lending environment, the task of getting a construction loan is even that much more difficult. If you have bumpy credit, don\'t even bother wasting your time applying for a loan today. Take some time, repair your credit, save some money and go after a construction loan at a later date.