Cash out refi to 25% down investor special loan - Good idea or ?

[Jesenia I.]

I may have the chance to access equity on a family members home to use as a large down-payment on my first investment property. I found a loan program that if I can afford 25% DP then I don't need to qualify on my own W2 income. There is a 3-year waiting period for refinancing/pay off. This seems like a good idea to me since I just started at my job with commission pay and will not qualify for some time conventionally. 

Does this type of loan sound like a really good idea or a really bad one? 

[Benjamin Aaker]

The details of the loan, like interest rate, are important. Sounds like you have a prepayment penalty; I don't think the contract can stop you from paying off the loan. I'm not worried about that 3 year period. It's pretty short in the life of an investment. Just take care with the loan from the family member. You don't want an unforseen problem to jeopardize your relationship with your family.