When the real estate bubble burst in 2008, the result was a whole new game in money lending. They want proof that you can pay the money back as agreed. Banks in general are much more conservative in their approach. We are no longer loaning based on the presumed appreciation of the home. Gone are stated income levels, but instituted are market based appraisals.
Small town home banks are often being consumed by the larger conglomerates. The rules for lending continue to develop. Literally from week to week, some banks will lend, and the week following, they won’t accept loan applications. Now some banks are holding their own paper (loans) and servicing them themselves.
Because of the above, private lending is becoming a good alternative, to the commercial market. Be prepared to pay higher rates, but with higher limits on the money available and a quicker approval process.
One suggestion I have, is getting preapproved for a residential purchase. This will provide additional bargaining power in making a purchase offer. One thing, I personally don’t like, are builder agreements that are strictly cost plus basis. Mind you it is far easier for the builder, to not have to bid a project out for all the cost breakdown categories, but it doesn’t give the client a whole lot of control.