First Lenders Mortgage

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Low Credit Score Construction Loans


Construction loans are loans that are made to the consumer for the purpose of building a new home. Construction loans are great for the consumer who already owns land, the land can often be used as a way to qualify for the loan.


Value of Home

Construction loans are made on a project that has not yet been completed, so the lender basis much of the loan qualifications on the value of the completed home. An appraisal will determine the value of the home once it is completed. A loan-to-value calculation will be done in order to insure that the lender is covered in the event of non-payment by the borrower. LTV is the percentage of the of the home minus any mortgage amount. The lower the LTV percentage, the less risk exists for the lender, so loan terms may be more favorable.