Yes, this is pretty normal - generally conventional loans like this are super competitive (since everyones essentially offering the same product) so shopping and finding some deals especially with smaller banks and brokers can yield good rates well under the "prevailing headline market rates"

Was there a PPM as part of this offering?

The only advantage is has over conventional loans is the 0% DP and no mortgage insurance. 

Additionally, find lenders who offer short-term seasoning options, which allow refinancing shortly after rehab completion.I'd be happy to assist! 

I'm particularly passionate about long term rental and fix and flip.Outside of real estate, I enjoy watching sports, I am an insurance broker.Excited to learn and connect with you all!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!

There are lenders who offer construction loans for investment properties for exactly the scenario you're describing.

I am an investor in Memphis and we have several groups on FB and I see posts that offer these services all the time.

Depending on your budget @Charles Manabat, we've got plenty on the market in Incline Village on the (Northen) Nevada side of the lake- Unfortunately we're struggling with astronomical fire insurance rate increases which is causing many to sell. 

I this era of high taxes, insurance, and historically normal rates (notice I didn't say high rates as they are currently somewhat the historical norm), it's hard to do a higher loan-to-value deal and get the rents to cover the PITI + any HOA.