Getting a Construction Loan

Doing a plasectomy on your credit cards shouldn't affect your ability to get a construction loan.

QUESTION: Jason wonders how tough it is to get a home construction loan when they have cut up all their credit cards.

ANSWER: Not having credit cards shouldn’t affect the construction loan, but your equity in the project does. A mortgage company will look for more than just your FICO score. You can get a mortgage without a FICO score. A lot of banks that do construction loans can walk you through all that. Cut up your cards and close your accounts. It may drop your score a few points, but it may also take three or four months for them to get around to dropping it.