Let me be quick to tell you that this assumption is not actually true. There are so many lending companies, lenders and banks out there that give bad credit construction loans now you don't need to get comfortable in a small and probably rented apartment when you can build your dream home.
It wont be wrong to ask why build when you can purchase the house? Note that in buying, you will end up settling for that which was pre-made and lived in. On the other view, if you build, you get targeted specifications that fits your taste. It will be very wrong of you to believe that this dream is limited to people with great credit scores and history, bad credit construction loans makes it possible for achieving this dream.
What you need to do first is to apply for a loan noting the difficulty involved in getting a lender when you are in the bad credit mess. Applying with a big company will be welcomed because the smaller ones will want to play safe by taking little or no risks.
Construction loans have very complicated processes when compared to mortgage loans. Here you will need to make sure that you get the services of a lending officer with experience in bad credit construction loans. This will help you save time and money.