Posted on: 29th Aug, 2009 02:29 pm
I am in the process of building a log home and I am 80% complete. I need to borrow the money to finish it, I have some money still in the bank, but I want to hold on to that for now. I have poor credit, I own my land. Would I be able to get a loan at the bank using my land to secure the loan, with bad credit?
check this out
http://www.mortgagefit.com/know-how/fha-constructionloan.html
http://www.mortgagefit.com/know-how/fha-constructionloan.html
i'm not sure that the 2 year-plus old material on that link is helpful here, but maybe.
here's my take, though: with poor credit, you've taken a lot of risk in going as far as you've gone. lenders are not crazy about poor credit borrowers. you mentioned money in the bank - that's also a way in which to borrow: pledge the money for a loan, and if you don't pay the bank has its money back; if you do pay, your money is freed up again.
you may have a shot because, as you say, you're 80% done. you didn't give us any idea of how much that 20% amounts to that you're in need of, but offering the land as collateral, while not a lender's favorite piece of security, might buy you the opportunity to borrow what you need.
check around in your area with all the local lenders, including credit unions, to see what is available. also, you're smart to do an internet search to see if there are lenders custom-built for your situation.
i believe you'll not be received as well as you'd like, but you won't know that until you begin making some entreaties to various lenders.
here's my take, though: with poor credit, you've taken a lot of risk in going as far as you've gone. lenders are not crazy about poor credit borrowers. you mentioned money in the bank - that's also a way in which to borrow: pledge the money for a loan, and if you don't pay the bank has its money back; if you do pay, your money is freed up again.
you may have a shot because, as you say, you're 80% done. you didn't give us any idea of how much that 20% amounts to that you're in need of, but offering the land as collateral, while not a lender's favorite piece of security, might buy you the opportunity to borrow what you need.
check around in your area with all the local lenders, including credit unions, to see what is available. also, you're smart to do an internet search to see if there are lenders custom-built for your situation.
i believe you'll not be received as well as you'd like, but you won't know that until you begin making some entreaties to various lenders.
It will not hurt
no disrespect intended
Neither me