With the FHA loan there is a 1.75% funding fee and permanent mortgage insurance 

Curbs, gutters, utilities temporary and permanent, architect plans specs, planning dept asks for changes adding fees, fencing to keep out the stealers, temporary porta potty, and then in a year you get the okay to start.

, permits, inspections, permanent financing, managing tenants, managing property managers, and so on.

. - Rehab financing is less of an issue than take-out (permanent) financing here.

These loans take more time, require more docs etc. 20% down requirement (you are closing one time for the construction -- includes land -- and the permanent loan).You could expect rates in the 11-15% range for HML/PML.

@Jason CroweHi Jason,If you have a high enough cash value in a permanent life insurance policy (either a policy on yourself or one you own on someone you have an insurable interest in like a child or spouse) then you absolutely can leverage it to finance a real estate deal.

What I'm wondering about are the 400-600 sq ft homes permanently attached to the ground, not necessarily the way to get around codes, but the actual market for newly built homes of this size.My father's thoughts were pretty much the same as any tiny home enthusiast.

Note: I believe they call out "manufactured home" separate of "the property" not because this form only deals with manufactured homes but because a manufactured home on land but not on a permanent foundation is considered a separate piece of real estate form the land.

@Daniel Kurkowski I was thinking they would be more of a permanent tiny home in the vein of a mobile home - not the tiny homes you pull around behind your truck.

They need transition housing I guess, since their permanent home is available in 2 months.