house in decent condition . no application / no interest so far.is that make sense?

I'd find a new builder and have late build penalties. are you building all cash?

Obviously, they have no intention of following the law & I wouldn't count on them to adhere to your lease provisions, either.Don't get me wrong - I love dogs & my pit (who went through the big doggie door in the sky many years ago) was the best dog, ever!

No fee's when I access rate is a tad higher.

They have no way to force removal, other than to pay off the loan on a home they no longer own. 

Also, in a mainstream asset class like value-added multifamily, I see no reason to take a risk on a sponsor that doesn't have full real estate cycle experience or that lost anything more than a small amount of money (and prefer no money lost).

@Jerry Velezif a property is owned outright with no mortgages, debts or liens on it, then it can (potentially) be purchased on seller financing. 

Prepayment penalties- usually 1-5 year terms.

Btw, the buyer is in no way at any criminal risk vis a vi the lender, he has no contract with the lender and therefore no obligation to the lender.

No making sure the home was clean and ready for guest.