After Tuesdays emails back and forth with this original lender, where she apologized but still continued to change her story....and I continued to provide her with proof that I had told her all along I was looking for a construction loan.......I get an email from her yesterday afternoon.
She was letting me know she had done some more checking of construction loan lenders in the area and had talked with a guy with a small local bank and he sounded like he could do the loan for me. Turns out it is the same guy I had called up myself and talked to on Tuesday. She, of course, had no idea I had already contacted him, when she called him up, and I said that he did sound very promising, but that every lender I have talked with has sounded the exact same way, so I wasn't holding out much hope anymore. I said but maybe it's a sign that we both ended up with the same guy.
She said they talked in length quite a bit and she wanted to know if it was ok if she forwarded him all the info/docs she had on me. I said yes, please do so as soon as possible. I had already filled out an online application with him on Tuesday afternoon, but had not heard back anything from him yesterday. She said he said that his only real concern seemed to be that he might have a hard time getting the appraisal to come in what we need it to be. (he told me this too) Not because our builder or land costs are unreasonable, but just because in general this area/county of the state is pretty rural and it's hard to get something appraised that high. (Hmm...so I guess they all just want people to come in and build little shacks, instead of a nice home that the county can earn nice property taxes on?). I don't get it - the house costs what it costs to build - it should be worth what you have put into it, as long as it's not some multi-million dollar thing or something. It's just an average type of house - 3 bedrooms, etc.
I know there is no sense in looking ahead at that issue, we first have to get approved for the dang loan! But I wonder if when they do the appraisal (the one done prior to starting construction) they look at what is surrounding? Do they base part of the home value on the "neighborhood"? Out of the 7 lots in this little subdivision on the river, only lot 2 has a home on it and it's a doozy. The guy told us it ended up costing them $800,000, but, he also told us a majority of it was paid for with an inheritance his wife got, so if they had run into the same low appraisal issue, it likely wouldn't have been a problem since they had the cash to pay the difference, if there had been any. Would having an $800,000 home next door to us help our appraised value?
And someone explain this to me? All (but one) of these lenders say their criteria for a conventional loan is you have to be 4 years past your bankruptcy (we are 5 1/2) BUT, when they deny me the reason given is "delinquent past obligations with others".....well, yes - because of the bankruptcy, that you just told me wouldn't be an issue, if I was 4 years past it. How do they get to have it both ways?
In the meantime, I had discovered the secret to weight loss. Try and get a construction loan. I finally put my scale in the cupboard. It was stressing me out even more to see a pound drop every 2 days.