More anecdotal real estate. This is a perfect example of the crap that we are fighting against trying to get housing jumpstarted.
My septic guy (installations, repairs and pumping service) has been in business his whole life with his brother and Dad (who recently died). He is gifted land via his wife's family. He has steady work, an inherited 40 year business track record,no debt,a free building lot, and a 798 credit score. Guess how much he was approved for a loan to construct his new home. ...Drumroll...$40,000. He was told that this is because he is self employed.
So, he gets on the phone with his family's and business accountant and asks him if he has any ideas for financing.(A friend, but not super close.) The guy calls him back and tells him he will write the loan privately for 4.5%, win/ win, but ridiculous that this is how we are getting deals done. Add to the mix, since the bank made him feel so bad, they reduced their plans to a modular and don't need me to supervise for them. (They were going to do alot of their own work anyway).
About 1/3 my work this past year was privately financed.
