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Can you have a house built with bad credit?

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If you’re looking to build a house but you’re worried that your bad credit score may get in the way, there might be an answer. Depending on your lender, they may be able to recommend you apply for a bad credit loan, which could potentially help you to get funded with ease. A bad credit loan caters to those with less than perfect credit, making them a good option if you’re struggling to be approved for a loan.

Read on below to find out everything you need to know about bad credit and construction loans.

Can you have a house built with bad credit?

Whether or not you can build a home with bad credit depends on which lender you apply with. Some lenders will lend to those with less than perfect credit, and some lenders even specialise in bad credit loans. Finding a lender who does specialise in bad credit loans could be helpful if you are struggling with a bad credit rating, but are wanting to build a house.  

What is a bad credit loan?

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Bad credit loans are designed for people who have struggled financially in the past. Intended to help people with bad credit, anyone who has any type of bad credit can generally apply for a bad credit loan.

Bad credit loans differ from standard loans in that they are targeted to help those who have experienced bad credit or bankruptcy. Those who have experienced these financial troubles can often find it difficult to be approved for a loan, and may find a bad credit loan helpful.

Having bad credit can be caused by a variety of factors, including overdue bills or defaulting on a previous loan payment. By having a poor credit history, some lenders may be less likely to lend to you. Bad credit loans are usually short term and fixed rate which may provide an opportunity to repair your credit history.

What will be needed to initially apply?

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When applying for a bad credit construction loan, there are a number of documents that your lender may need to see:  

  • Proof of income – Usually in the form of bank statements and payslips
  • Proof of monthly expenses – These may include rent statements from your agent, car payments and utilities
  • Any assets in your name – These could include other bank accounts and properties
  • Any financial liabilities – These could be any credit cards or loans in your name.

How long should a loan take to get approved?

Generally, you should be prepared for the home construction loan process to take a few weeks longer than a standard mortgage approval might take. This is due to the plans and contracts that need to be properly reviewed before your loan can be approved.

You should be aware that each build will have a different budget and timeline, resulting in different approval times. Your waiting time may also vary depending on your lender and their checklist of steps that they follow to approve a construction loan. When you apply, it may be possible for you to double-check with your lender how long they think you will wait for approval.

Where does Tiger Finance come in?

To us, you are more than your credit rating. We have helped countless Australians with both good and bad credit ratings to be funded for their dream build. We understand that lending criteria from other lenders are too strict, and can stop you from achieving your goals. That is wrong, and it should not hold you back.

With Tiger Finance, we can help to get you a loan in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved.

How we can help

Our finance specialists can help you find the right construction loan for your project. Construction finance is a complicated topic, but we will find a loan that makes your dream project that much easier.

If you are one of the many Australians finding getting a construction loan difficult, Tiger Finance can make the process simple and pain-free. Call us today for your free initial consultation with one of our loan specialists.

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