Hopefully as the rates and the housing market loosens so will some of these guidelines in the HML programs. from talking to hard money funds especially those who operate in more than 10 states, and 5 years of experience with underwriting teams, I'd actually disagree and say new construction is preferred to rehab due to experience level to enter the market. there's BP lenders that will do 15% LTC with 1-2 new build experience.

Hey @Chi Lo - I actually have a video on my YouTube page about this (lookup ClosedByMo on YouTube).Regarding walls being damp and waterproofed, it means there needs to be waterproofing on the basement retainer walls (this is something you can do post-construction and the contractors would need to dig around the house exposing the basement/foundation to apply the waterproofing). 

Any constructive criticism is appreciated.

By paying off the land loan through the new construction, it removes that lien and allows the construction loan to move into 1st position.   

When under contract at 300k with the expectation that codes would be the determining factor on what can be done on with the property, as it relates to new construction.

Has anyone ever had to deal with a rental being broken into and vandalized? I got a call from the Warren City hall and they reported pipes bursting and the whole driveway is flooded on initial reports. They reported a...

kudos to you for being so responsive to constructive feedback.i'm happy to answer any questions you have. 

When under contract at 300k with the expectation that codes would be the determining factor on what can be done on with the property, as it relates to new construction.

@Monty Alston It has some impact but no lenders will give you credit for having experience building a home unless you have built or renovated a home in the last 3-5 years.

I doubt that any serious lender is going to lend you construction funds in second position behind your mom's purchase-money lien on a distressed property.