The lender would supervise the project throughout.

@JamesIf you are an agent, you will have to respect the rules of your supervising broker.

You might consider New Jersey as it would be easy to supervise your investment, close enough to have oversight and far enough away not to be to involved.

If they refuse you can  talk to the supervising broker or find another realtor to represent you. 

Also anytime there are large deposits sitting in an account and you have a bigger firm there is always the risk of theft from an employee.. and being the supervising broker at least in our market your in big trouble if this happened under your watch.

Always subject to things going wrong, but somehow if I draw the detail and am on site supervising, I think I'll sleep better at night. 

I attest that all construction, plumbing, or electrical work will be done, in whole or in part, by me or by subcontractors under my supervision, in accordance with all applicable laws; and, I further acknowledge that said new home is not covered under the New Home Warranty and Builders Registration Act (N.J.S.A. 46:3B-1 et seq.) and that such fact shall be disclosed to any person purchasing this property within ten years of the date of issuance of a certificate of occupancy.

The point is that you have to be under the supervision of a broker.

I supervise extremely educated (U.S.

Agency renovation loans (FNMA HomeStyle & FHA 203k) have payment option periods that are limited to just that renovation period (capped at 6 months & the lender is CLOSELY supervising your reno work during this period).