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Construction loan credit score: what you need
Credit matters for a construction loan, but for investor loans it is one of several things a lender looks at. Here is how it works with us.
Get my termsNew construction loansWhat credit score do you need for a construction loan?
Short answer: bank construction loans for a home you will live in usually want a credit score of about 680 or higher. Private construction loans for investors look at the deal and the borrower together, and many work with scores in the mid-600s. Our form asks for your score in four bands, 740+, 700-739, 660-699 and under 660; your band affects your terms, and a loan officer confirms them after you send the deal.
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Your loan amount shows as you type. Send the deal and a loan officer follows up.
Estimate only. Loan amount is 90% of lot price plus build budget. Business-purpose loans on investment property, not homes you will live in.
How credit affects your construction loan
| Credit band | What it usually means |
|---|---|
| 740+ | Best pricing and the most room on leverage |
| 700-739 | Strong; standard terms |
| 660-699 | Workable; terms may be adjusted |
| Under 660 | Case by case; send the deal and we will tell you what is possible |
Building experience is not required in any band.
What lenders check besides credit
- The deal: lot price, build budget and the sale price when finished
- Your cash: your 10% plus closing costs and reserves
- Your entity: most investors borrow through an LLC
- Your team: who is building the house
See the full construction loan requirements checklist.
How to improve your terms
- Pay credit card balances down below 30% of the limit before applying
- Fix errors on your credit report
- Avoid new credit in the months before closing
- Bring a deal with a wide margin between total cost and sale price
Questions builders ask
Straight answers about construction loan credit score.
What credit score do I need for a construction loan?
Bank construction loans usually want about 680 or higher. For our investor loans, your credit band affects your terms; send the deal and a loan officer confirms them.
Can I get a construction loan with bad credit?
Possibly. Scores under 660 are looked at case by case together with the deal and your cash.
Do you check credit?
Yes, for each guarantor, as part of underwriting.
Does experience matter more than credit?
Neither is required to be perfect. We lend to first-time builders, and credit affects terms.
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