You don't necessarily have to have exemplary credit to get a construction loan. As with most other loan types, there are sub-prime lenders who will happily work with you. Of course, you should expect to pay higher interests rates for sub-prime loans.

Because there's so much at stake, you should do plenty of homework before you commit to any construction loan. The Internet is a good place to start. However, it also makes sense to talk to a professional not associated with the lender, such as a lawyer or financial adviser.

Since construction loans aren't meant to be long term, once your building or remodeling is complete, you'll need to convert the loan. Your best option is a first mortgage, since you have longer to pay off the loan, and the interest rates tend to be lower.