If it is a direct lender you are able to work to find more favorable terms because they usually determine their terms on a deal by deal basis. 

Wouldn't hurt to look in to both to give yourself the best chance at finding the best loan product. 

You didn't find the property, you're not doing the rehab work, in fact are going to delay and interfere with the rehab by moving in while it's still under way.

. #2 is the utter BS that is being pumped into peoples mind's by whatever media, regurgitated onto others with no fact finding to confirm or deny.

Either to partner or find other financing options. 

However I would say those lenders would be more willing than a bank to write the mortgage, and after completion you can refinance it.Overall, its probably easier and better use of your time to just find another house that doesn't require the construction and where the numbers make sense.

“Lot of Excess Cash” trying to find a homebefore it gets devalued and before Interest rates go up further forfuture development.C.

Credit score and loan size can also affect what rate you may find. 

Find out why, see if you can learn/hire to fix that problem, and you might have found your niche.Do you know anyone or have a family member that is licensed in one of the trades? 

There was something in it for both of us.You have to find some sort of common ground or gain a lot of trust to show how serious you are about this.