I am currently in Houston, TX but will be moving back to Allentown in November to continue working at Air Products in Trexlertown PA.

When would it be wiser to use a conventional home mortgage than a product like this?

Joel Owens here on BP is one I've always been impressed with his understanding of product type, cycles, returns etc.

@Orwin Smith if you know the product you need but just need it in a specific state try posting in that state forum.

The good news is there should be products still out there. 

If I understand what you're describing, it sounds like your lender is being particularly aggressive and probably does not want you to refinance out of his/her loan product, though that is your choice.

If it is now finished, then I would load it up with 50-100 pictures of the finished product, including interior photos.Why has price gone up $500,000?   

The best rates come mainly from the company they work for and their associated programs/products. 

Local lenders with credit unions may have quirky loan products that you wouldn't find at a big box lender but this is not always the case.

A lot is going to depend on how you're situated and how that matches up with the loan products they offer.