We used it before on infrastructure and bonding for municipal works and for phased commercial but I've not seen it specific for residential.The other option would be to simply get the best construction loan possible and then use the 1031 proceeds to pay down the mortgage before moving in later and doing a refi on a lessor amount.

@Ryan King - before you go sanding the floors, test them for lead paint and proceed accordingly.While I'm not sure what was/is used out in your parts, here along the east coast, pine and fir was (and still is) widely used as a flooring.  

Can we then get the city, etc. to drop their lawsuits so we can proceed as our budgets allow rather than as they might want?

If you're here for the next 4-5 foreseeable years without any big changes on the horizon, proceed.2) Househacking is most assuredly your easiest way to get started, especially if you don't already own a property.

The bond sale proceeds go into a separate FDIC insured bank account until the funds are disbursed directly into our secured loans - so your money is either in the bond account at the bank or at work in a secured loan.

Here are the numbers associated with the deal.Purchase price $98,900Current Mortgage $77,140.  20 year 7% variable locked in for 3 years (2 more), then prime +2% Rent $1050Mortgage Payment $615Annual taxes $2441Annual Insurance $1052Estimated market value is $105,000Again any suggestions for the best way to proceed would be appreciated.Thank you!

If the builder isn't available and she doesn't have the knowledge, I'd proceed carefully.

She's hoping to use the proceeds from this sale to go towards a house near her grandkids.

If she does live there; DO NO PROCEED, Maryland laws to protect homeowners in foreclosure are very tough and could give you heavy fines and even jail time.

I would only ad that if the borrower thinks you are here to help them in any way, and is subject to foreclosure proceedings when in contact with you, you or your designee may be subject to licensure or, may be exempt from licensure provided they meet the exemption criteria.California is VERY pro debtor.