Some banks and lenders will calculate your Heloc payment based on the Max limit even if you only have a small portion used due to preventive risk. 

We don't tend to get them when buying from a bank (because they usually won't budge on price) or wholesaler (who often provide an inspection) but do our own thorough inspection. 

There is no seasoning requirement involved since the property isn't a short sale and it isn't someone buying REO from a bank with a seasoning requirement.

this is the distinct different between being an actual lender like a bank .. and an investor in a fund.. two very separate transactions.. when you lend and receive collateral on the asset you get paid when it pays off or the borrower refinances etc. 

Proof of funds would be a bank statement or some other document indicating the liquidity you have.

Our economic system has inflation, which favors the banks, baked into the system.

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.

Leverage Local ResourcesEconomic Development Grants: Check with your city or county for grants or incentives aimed at affordable housing or community improvement projects.Local Banks or Credit Unions: They may be more flexible than larger financial institutions, especially if your project aligns with community needs.Partnership with Nonprofits: Collaborate with organizations interested in affordable housing or sustainable living.4.

You can talk to the bank about a loan; however, my bet is they will want some form of contract and scope of work and will only pay him at set milestones.

People have to remember that the seller finance space fills the gaps that the banks leave behind.