Conventional construction loan credit requirements
Conventional financing generally weighs credit more heavily than FHA — your score, history, and debt-to-income shape both approval and pricing. This page covers how credit is generally evaluated for a conventional one-time-close construction loan, including the single-close requalification nuance. Final eligibility is determined by automated underwriting review.
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Automated underwriting reads the whole file
Conventional construction loans generally run through Fannie Mae's automated underwriting, which evaluates your complete financial picture rather than a single number — income stability, assets, equity, reserves, and credit together. A published score floor exists, but what actually qualifies a file is the automated finding on the whole picture. Reviewed by Jim Blackburn, NMLS #1072866.
Score, tiers, and the single-close nuance
A conventional credit review generally weighs several things together:
Score floor and tiers
The published floor for manual underwriting is generally 620. Above it, higher score bands typically improve mortgage-insurance and pricing tiers — so credit affects not just approval but cost. Final eligibility is determined by underwriting.
The single-close requalification nuance
You qualify once, up front. As a general guideline, a representative score of 700 or higher typically waives requalification at completion, while a score in the 680–699 band may prompt a credit refresh. The lender's guidelines govern the final call.
Debt-to-income
An automated approval can allow a higher debt-to-income ratio than a manual file — but the figure that actually qualifies depends on the strength of the overall picture, and you're qualified on the full future construction-to-permanent payment.
Protecting credit during the build
Because a lower score can matter if requalification is triggered, keeping your credit steady from closing to completion helps protect your permanent terms. Steady credit in, locked terms out.
Bankruptcy and foreclosure have waiting-period guidelines
A past bankruptcy or foreclosure is generally a waiting period with a defined end date, not a permanent barrier. Under conventional guidelines the general windows are around four years from a Chapter 7 discharge, two years from a Chapter 13 discharge, seven years from a foreclosure, and four years from a deed-in-lieu or short sale — with documented extenuating circumstances sometimes shortening them. The clock has often run longer than people assume, so it's worth confirming your actual dates. Every scenario is reviewed personally by Jim Blackburn, NMLS #1072866, and final eligibility is determined by underwriting.
Credit FAQ
General guidance below reflects typical conventional program parameters. It is educational and not a commitment to lend — your file is evaluated individually by automated underwriting.
What credit score do I need for a conventional loan?
Does the conventional loan use my middle credit score?
Do I have to requalify after construction?
What if my credit score drops during construction?
What's the maximum debt-to-income ratio on a conventional loan?
Is manual underwriting available on the construction program?
How long after bankruptcy or foreclosure can I get a conventional loan?
Is a conventional loan only for people with perfect credit?
Want a straight read on your own credit picture? Schedule a call with our team.
Conventional (conforming) credit standards follow Fannie Mae and Freddie Mac guidelines, and individual lenders may apply additional requirements. Credit eligibility is determined by automated underwriting review of your complete file — the guidance on this page is educational and general. Program guidelines reflect published 2026 figures and are subject to change. Jim Blackburn, NMLS #1072866. This page is not a commitment to lend or a guarantee of approval.