Is it worth it to spend $3500 to save $1000 I don't see a benefit. Keep your escorw and your rate. Why the regrett of an escow account?
A fixed price contract will be the norm, very few if any lenders will accept a time and material type or cost plus contract. They will want to know actual construction cost in order to asses their risk and that enough funds will be available to complete the project.
No out of pocket cost may also result in a higher loan balance using loan proceeds to pay for the cost of refinancing, without bringing cash to the closing. Remember larger lender credits equal higher rate's as stated SoCal.
The short answer is no the rate and or csot may not be changed on the loan as long as you keep the loan. If you refinance after making the property a rental you would pay higher cost and maybe rate based on an investment property.
The seller credit can cover all closing cost associated with the purchase up to a total amount of 6% of the sales price. It can not cover any part of the your 3.5% down payment. The list of what can be covered would be a long one.
I am surprised you haven't had lots of people raise their hands. The first question is why do you think you need a portfolio lender? Many small local banks and credit unions have a portfolio product but offer them for specific situations, property issues, self employed borrowers etc. I have access to several portfolio lending products. If would share your situation some suggestions could be offered.
There is no such thing as a no cost loan, there will always be cost. The difference may be in who pays the cost. The lender may pay the cost on your behalf with rebates from the loan using a higher interest rate. The cost will be shown on the GFE and you should see a credit that offsets the cost. Sounds like you need to have a further discussion with your lending officer for clarification on how the cost are being paid. Any lender providing a loan must make a profit and pay for the process some how. Good Luck
Make an appointment with a local loan officer and discuss what is available. Interest rates remain at historic lows for both owner occupied and investment properties. Remember that rates can vary with a borrowers credit score, property type, cash out, loan to value etc. The lowest rate does not always equal the best service and or experienced loan officer. Shop local and support your community.
That should work, you are lucky your CPA would write the letter many will not. Good Luck!
Yes it will effect the process as you don't own the property anymore. The bank is making the offer on the assumption you are still the owner. You may want to consult an attorney if you transferred title without the banks consent as you may have violated the terms of your mortgage.