Have you been worrying lately because you want to build a house but cannot because you have bad credit? So if you are asking if you can build a house with bad credit, then the answer is yes. There are options for you like FHA loans, USDA loans, and VA loans. The usual first step is usually to increase your credit rating. Talk to a loan officer to know what the concrete steps you need to take to help you improve your credit rating. What the officer would tell you is that first, you need to get a copy of your credit report. This is to make sure that there are no errors found in it. If there are, then you can have it deleted. Expect your loan officer to tell you that you need to be updated in paying your obligations and debts. There are also score boosting programs that you can explore. While waiting for your credit rating to increase, start saving for your down payment already. A big amount saved up for down payment will tell the lender that you are serious in building your house. While it is true that you can go as low as 3/5% down payment for your house mortgage but it would be best to go for a bigger amount if possible. Always remember that having a low credit score may mean that if you qualify for a mortgage it might be with a higher interest rate. This means that for the whole duration of the loan, you will be paying more interest. You may also want to look into taking out an FHA loan which requires a minimum of 3.5% down payment and credit score of 580. Although because of the COVID-19 pandemic, the minimum credit score has been changed. So it is best to talk to a loan officer to get an updated minimum credit score rating. Construction loan with bad credit is possible, so don’t hesitate to contact us so that we can help you take the necessary steps to start your home construction.