@Brian WilliamsYes, there are local banks / credit unions who do construction loans.I think the your fuzziness on the 2nd home topic is while it meets what I'll call the "basic written" criteria, once you declare you will be using it as an AirBnb then you are saying its being used as an investment property. 

My wife and I are going for our first property ever, we're currently living in a rental and probably won't move out soon because the rent is relatively cheap, so we want to rent out our first property when we buy it.However, I'm afraid if we purchase it as a rental, we'll be losing out on the Home Buyer Plan, the capital gains exemption, Land transfer tax exemption, and who knows what else.What are the pros and cons of declaring it as a rental or owner-occupied?

We must also live at the property for two years and sign declarations with the city immediately, after one year, and after two years stating that we have and still are living in the unit.

Even if you can back date the lease, your friend has not been declaring any depreciation for their "rental". 

@Christian Scully I'm not sure I understand your question correctly, since it seems like, almost by definition, a second home would not be an owner's primary residence.If you're asking for purposes of the lower owner-occupied tax rate in Providence, the language in the Providence Declaration for Owner-Occupied Tax Rate says, "my above described residence in the city of Providence constitutes my predominant and principle home.

In your situation, I would write, sign, and date a handwritten letter to the lender or loan officer declaring my intentions for the property and outlining my plans for the condo in the meantime.

When it comes time to speak with the sellers, you may have to flex some negotiating muscles.

@Ashley@Ashley Storke Are you saying that you have un-declared income and want a lender to rely on it to qualify you for a mortgage?  

Whenever there is a federally declared disaster area, a new option opens up called FHA 203(h).

The IRS will not take kindly to you not declaring income.