The state paid about $35,000 down for us and our mortgage was about $820/month ($123k loan amortized over 30 years at 4.5%).

Also, do the math - does demoing your current house + paying off the current mortgage immediately, then getting a construction loan make sense?

However, based on the loans they are telling people to get and the course time frame - that is heavily implied as doable. 

If you can find a vacant lot the bank includes the land cost into the loan so you save money in the long run. 

Hi Nolan - Have you explored DSCR loans?

@Nancy MillsMake sure you have the person also sign a personal guarantee on the loan --- that's pretty normal. 

   =)  there were rehab loans available for a while for 0% interest, which was cool... but there was a cap on the number of properties you could own and be eligible for, which i was above.so we need some kind of catalyst or incentive. 

However we have been having trouble finding a lender that is willing to allow us to get the full 80 percent loan to value in a refinance.

I am seeing some delinquencies that show foreclosure, but the numbers don't make sense unless there is some sort of ground rent or non-mortgage loan tied up with the properties.

Also, you may want to consider finding a home with an assumable loan if you haven't already purchased.