In every region of United States, home inventory continues to be a challenge. Consumers are searching to understand the home build process to find an alternative to buying a home. Even if you can find homes within your budget it is hard to find floorplans, square footage, and overall properties that meet your family’s needs. On top of low housing inventory, the inflation of home prices has caused middle class home shoppers to delay purchase plans. Many shoppers are researching the options available to build a dream home. There are several different options to consider for every type of borrower. The real question is are the mortgage qualifications the same?
What kind of credit do you need to build a home? Are the criteria like a traditional mortgage? Let’s walk through some of the considerations borrowers face when planning on building a dream home.
Home Type – Home shoppers with a lower credit score, and modest budgets can still build their dream home. Manufactured and Modular homes can be an amazing solution. While economical, these homes can provide many quality features which allow you to customize a dream home. Talk to your builder to understand what home types are available for you.
Loan Programs – Just like a traditional home purchase, customers can expect similar loan programs. These vary from conventional, FHA, VA, and USDA. Each loan program provides different solutions for every circumstance that a borrower may face. Each program also requires different down-payments, so it is important to learn about each. To learn more about the loan programs offered by 1st Signature Lending – click here.
Credit Score – While every customer scenario is different. 1st Signature Lending offers loan products for credit as low as 600. It is important to work with a loan origination expert to understand how credit score impacts overall mortgage loan opportunities. Some may need help improving credit scores to qualify, and there are several credit improvement options to consider. If you are concerned that your credit score is too low to qualify for a mortgage, you may be surprised at the opportunities that are available.
Building a dream home is a big deal and requires borrowers to plan accordingly to find the right home type and Loan program. Do not be discouraged if you feel that your credit isn’t perfect. Everyone has circumstances and challenges to overcome to build a life. Do not hesitate, or delay in contacting a 1st Signature Lending loan officer to understand how to qualify. Start the process today to build your dream home.