New Home Construction Financing in Minnesota and Wisconsin

Do I qualify for construction financing?

It is very difficult to find a construction loan these days - and even more difficult to find the right one. Many lenders have either suspended their construction financing or eliminated it completely. We are still completely ready, willing, and able to offer you the opportunity to finance your new construction home.

The main things a lender will look at to initially qualify you are:

Income, Credit, Debt, Cash Reserves, and Down Payment.

Even with today's stricter guidelines, there are things you can do to give yourself the best opportunity for approval:

• Income - if you receive a W-2 or have been self employed with tax statements for 2 years, you are an excellent candidate for approval
• Credit - Your middle credit score needs to be a minimum of 620 for loans less than $417k. For loans over $417k, the middle score needs to be over 660.
• Debt - Your debt to income ratio can not exceed 41% if mortgage insurance is necessary. If not, your debt can be up to 55%, including your new payment.
• Cash Reserves - Many lenders will require you have 3 months reserves for your new payment - principle, interest, taxes, insurance. Some may require up to 6 months.
• Down Payment - Depending on the equity in the home, down payments may be as low as 0%!

Your initial package of information should include:

• 1 month's paycheck stubs
• 2 years W-2's
• Recent quarter investment statements
• 2 month's bank statements

If you are self-employed:

• 2 years tax statements
• Recent quarter investment statements
• 2 month's bank statements

Contact a Contractors Capital Corporation loan officer for more details about new home construction financing in Minnesota and Wisconsin.