Unfortunately with those numbers it's tough to find a non-bank lender/financial institution that will lend.Usually loan minimums are $50K and the up to 75% LTV on purchase-money/70% LTV on cash-out refinancing, which basically means you need up 25-30% depending on the type of financing. 

I'm going to leave the minute details out, but it was quite the adventure trying to get my money in the right place (and that wasn't due to error or time issue on my part, or dragging of feet in the bigger financial institutions), even when using direct preferred/recommended vendors to RADD IC.

If it's the latter, refinancing from a banking institution would be determined by the location of the bank rather than the location of the property methinks. 

Are there any institutions or other loan products that offer 3.5% down (potentially can go up to 10% depending on the total construction costs) AND takes into account the rental income?

Is one of these institutions superior for any reason? 

She took about two months studying outreach particular niche and instituted a program in steps where the results could be verified before implementing the next step.  

Deposits from the tenant.Security deposits from the tenant in residential dwelling units shall be deposited in a trust account with a licensed and federally insured depository institution lawfully doing business in this State or the landlord may, at his option, furnish a bond from an insurance company licensed to do business in North Carolina.

Garn-St Germain Act"Garn-St Germain Depository Institutions Act of 198212 U.S.

I would be amazed, shocked even, if a traditional financial institution was willing to lend on a non-habitable asset up to 80%. 

I'm not saying scams don't happen with more expensive assets but it does seem like the mechanics of this particular scam were intentionally set up to eliminate banks and institutional investors/target unsophisticated investors.