 TITLE: How Do Home Construction Loans Work? CONTENT: How and Where to Get a Home Construction Loan\n---------------------------------------------\nTo qualify for a home construction loan, you'll generally need a credit score of at least 620 (although the higher, the better), a debt-to-income ratio of up to 45%, proof of your ability to pay off the loan, a down payment covering 20% to 25% of the construction costs, a signed contract with a licensed and insured builder, an appraisal of the value of the land and completed home, and a complete blueprint for the project.\nBanks, credit unions and mortgage lenders are among the places where you can obtain a home construction loan. You might start by comparing interest rates, closing costs and other loan aspects at lenders in the area where your home will be built. In doing so, remember that you may want to take out the initial construction loan and the permanent loan at the same lender to make things more convenient. END