Traditional bank loans can be slow and have strict requirements, while hard money and private lending seem to offer more flexibility.For those who’ve secured funding before, what’s been your experience?

Did you try a local CU or bank for a construction to permanent loan?

The substitute of collateral was more of a scenario where you sold for $155K, and instead of paying off the $88K loan in your scenario, those funds stayed at the title company and were used on a cash purchase happening nearby in date. 

(Get an owner occupant loan.)Can you seller finance it for more?

The only thing it’s difficult for is if you have multiple loans on the property.

Additionally, I have a great relationship with my lender and secured favorable terms on my current loan.

Often, lenders will not act until the differential between current interest rates and the interest rate on the subject loan reaches a certain point.  

Weather differs depending on where properties are located and even snow accumulation within the same geographic area will vary year to year.

@Enrique Toledo  If the seller is firm at 10% down, you can always get a personal loan for that 10%. 

. - that might be a situation where you would want to work with a contractor directly because you would have lots of different options with widely varying costs.