Financing the First Deal

[David Kolmer]

Hello, Bigger Pockets People!

I am looking at buying my first investment property this December 2017.

BACKGROUND:

I have been watching the market for years but have been watching very closely over the past year. It's in my backyard and I have helped my dad with dozens of his flips and buy and holds in the area for years.

I purchased the house we live in as a HUD and I am doing Brandon's BURR method (although I had not heard of that at the time) and we plan to rent it out in the near future.

My question is around financing:

I have been calling an A-list of small banks in the area. (like Anca did on BP eppisode128.) I have been mentioning that I plan to buy a real estate rental and it seems like that is a mistake. Is it better to just ask for an unsecured line of credit? (like Austin Fruechting did in BP Episode 239.)

I am talking to a small bank that is willing to provide an ARM. They will lend up to 80% of the purchase price and do a three-year balloon on a 20-year amortization at an interest rate of 5.50% to 5.75% with a 1/2 percent origination fee and standard closing costs of appraisal, flood, title, recording etc.

Perhaps a Fannie Mae loan with a 20-year amortization, if the rate is still good or better.
I have heard on the Bigger Pockets Podcast that Fannie Mae and Freddie Mac have limits, (FM 4 year & FM 10 year.)

LOAN QUESTION:
If I get one Fannie Mae loan to start out, will it limit me in using creative leverage (private money hard money, private mortgages, etc.) moving forward? Or does it only limit you on getting more Fannie Mae and or Freddie Mac loans?

So, in other words. Does Fanie Mae and or Freddie Mac only count loans they provide? 

I know that this is a small and ignorant question and that I could probably find this answer in the terms of the loan somewhere, but so far I have not been able to find the answer and I wanted to ask all you smart people. Any other ideas on creative financing would be much appreciated. 

best,
David.