My husband makes between 80-100k/yr and has been with the same company for 10 years. Score in April was 571, now 650.

If you are looking to secure a mortgage with a 650 score then I would recommend a conventional with 10-15% down and Private Mortgage Insurance. Go FHA if you lack the 10% down as FHA only requires 3.5% down.However, FHA should be your LAST resort as the mortgage insurance does NOT drop off after a 22% equity position is reached. FHA monthly mortgage insurance is on for the life of the loan! Make sure you understand that beforehand.

I see you also asked the question regarding constr-perm financing. The risk is very different for an existing home (not one that you will build) and as long as the rest of his qualifications are acceptable he should not have trouble getting a mortgage. Unless he is eligible for VA financing he'll need at least 3.5-5% for a downpayment but as mentioned above his best option will be with 10% down where he will have lower payment. I can help: pdumouchel@primelending.com or 843-619-6025 http://pdumouchel.primelending.com **PrimeLending was #4 purchase mortgage lender in the US in 2012 and 2013 as determined by MarketTrac(c) for Jan-Dec 2012 & 2013

We have two single close constructions loans. Our New conventional with 10% down and our Native American program with 2.25% down www.todaylending.com

You also need to have a lender look at his income documentation. What will count is the amount of income he pays taxes on, after expenses. So, if he writes off expenses against all his income he may not have enough to qualify. The description you gave of what you want to do will be difficult. Most lenders will not use the adjacent land for collateral, you'll likely really be better off talking to a local credit union or community bank that offers construction financing. Or, continue working on his credit and get it up over 680 before applying. Good luck!