Holding back some of the payment until final check-off

[Mac Walker]

Hoping for advice on this one -

We plan to replace our 77 Fleetwood Barrington with a new Karsten triplewide, on our land. We don't own the land free and clear; instead, we're refinancing the original mortgage, and adding the house to the new one.
The dealer - and their finance arm, which originates mortgage loans - want 10% down and the balance on delivery. I have no doubt that they will happily release funds (from the left hand to the right) - but this takes away any power I have to make sure the setup and finish are proper.
One alternative we found was to go through the business bank my wife works for - however, they do not want to issue a check until all is complete (we would come up with the 10% from our own pocket).
A second alternative looks to be a construction loan - but that seems fairly more expensive. The difference in cost between the two initial choices is not huge - 1/4%, and about $1K in fees.

Your thoughts?
Thanks in advance,
Mac & Belinda

[John]

You can negotiate a holdback with the dealer but he will probably want that amount held in escrow. They want to make sure the money is available before they deliver the home and if it is held in escrow at least know you have the funds. If you are holding their profit they will be more inclined to complete the job to your satisfaction.

[Mac Walker]

Thanks, that makes sense. Appreciate the advice!