Many companies have left the state entirely.Insurance is a simple math game. 

One thing I continue to think about is how valuable 2-4 unit properties are becoming, and will continue to be, since Fannie/Freddie took the income restrictions from the 5% down conventional loan option for house hackers. 

Are you using a PM company?

Is there a pre existing loan with that bank with either of you?

You can talk to the bank about a loan; however, my bet is they will want some form of contract and scope of work and will only pay him at set milestones.

The macroeconomics are blowing up and going parabolic - population growth, job growth, and companies moving and developing here.

Quote from @Vince Scipione: Standard would be an FHA loan for your situation more than likely.

I've also used traditional loans through regional banks and a few SBA loans. 

This means sizeable monthly payments, but if utilizing with Value Add you can pay off the loan without a pre payment penalty at any time.Hope this helps!

We're in a small town so we ask our bank loan officer who is involved in the community for a CPA reference.