After the loan with CountryWide fell thru, I started researching Owner/Builder lending institutions. I finally came across a really awesome Owner/Builder construction loan company based in Michigan called, Loan to Build. Their rates were 1% lower than CountryWide's. Owner/Builders were their preferred clientel. Their draw system allowed upfront draws to cover purchasing of materials - something no other loan program offered. They seemed too good to be true. So, I decided to give them a call to find out what could possibly be wrong with this deal.

I called the representative and gave her all the project information... how much we owed on the property, how much we wanted to spend, our current credit scores, gross monthly income, etc. Then, I waited while she ran the numbers to see if we could qualify for a loan. When she came back on the phone, she said, "Looks like we'll be able to help you out." I couldn't believe my ears. Plus, they could reuse the appraisal we purchased from CountryWide! This WAS too good to be true. So, we started an application. First thing on the application, "What's the project address?". I replied, "3286 Stone Road in Springville, Iowa." To which she replied, "Oh, we're not licensed to provide loans to Iowa residents." My mouth fell open and I almost burst into tears.

Apparently, some sort of state regulation prohibits loans to Owner/Builders in Iowa because of site supervision. Now, when have you ever gone to a construction site and found the general contractor just lounging around supervising everyone? I'll tell you when... NEVER!! But, since they're a general contractor the state assumes that is what they're doing. And, since Owner/Builders work during the day, they obviously can't be supervising the job site.

So, with even the state of Iowa against us, I politely thanked the woman for her time and hung up the phone. This is absolutely, without a doubt, the most discouraging thing I've ever tried to accomplish.