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Will I Qualify With Two Negatives?


Northern Lights
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1. Have an acre of land which is paid. Land in this area where I want to build goes for 30-40 thousand for 1/3 to 1/4 acre. I paid 30 thousand in 1999.

2. I have steady full time employment for the past 14 years, with good pay for this area.

3. Now I have two dings on my credit report one from Wachovia bank back in 1999 that is listed now as paid account settled less then full amount. The other ding is a providian account same year that is listed as transferred (but pays as agreed) on two of my reports but gone from the other.

Im looking to build a new home using the land as part of the down payment and then I would only have to pay closing cost. Will the two negatives hurt any chance of this happening?

My fico scores are between 690-700

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Mmmm ... that's a toughie. It's a given that whoever writes the construction loan will want to use the land as security regardless. After all if you default on the house it's kinda hard to move the house once built. Just those two dings and they are not active CO's but listed as "paid as agreed"

I assume you've attempted repair on those and they would not budge?

From here you may not get the best rate in the world, maybe a point higher, but you should be approvable without any issues. Maybe even for a conforming loan.

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I tried three times on repair method and finally got one Providian removed.

I posted two topics in Credit Repair for both accounts asking anyone if they can see something in the listing that I may have missed. If i did then maybe i can use it to resend my dispute.

The topics were "Hit stone wall" and Installment loan settled(stone wall#2)

Im trying real hard to get these two negatives removed prior to going for that construction loan so any help will be appreciated..

Thanks in advance

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It is my experience that those issues from almost 7 years ago will not be a problem. Depending on how much your new home is going to cost, you will have an attractive LTV (Loan to value-amount of the value of your new home that you are borrowing). So, don't worry.

Comment from an experience long ago that I remember clearly:

Once you have made your deal with the builder. Have your Loan officer order an appraisal. It is amazing to me, but a fact. You will have a fairly accurate value to work from. All that is needed is a follow up appraisal when the final work is done to confirm the value.

You don't have to do this, but you really should.

Charles

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I wouldn't. Appraisals are not a science, but an art. What I mean is that if you got an appraisal for the "dirt", the appraiser is going to give you a value of unimproved land or something close to that.

I would have the Loan officer arrange the appraisal and the appraiser will get with the builder etc. I would request that the LO send a notice to the Appraiser that the appraisal be put in your name. Just tell the LO that since you have to pay for the appraisal, you want to also own it.

In my experience this will get you a better/more realistic value on the land, and it will give you a bit of control.

Charles

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