How does private loan affect conventional loan?

[Alex Hogenson]

Hello BP,

I'm looking to finance my first duplex (house hack) with a conventional loan, however I won't have the necessary funds by the time I need to purchase (tentatively need to move in June 1st) for a down payment, closing costs (hopefully seller paid, but I'm not going to count on that), and reserves (1 month of PITI). For this reason, I'm considering a private loan (not a gift) from a friend, which I would be paying back over a certain amount of years, to cover the difference.

My question is how receiving a private loan will affect my ability to receive the conventional loan. I know it will affect my DTI ratio but I believe that should still be low enough to qualify for the conventional loan.

Should I receive the private loan early enough to let the cash season (60 days I believe)? Is that necessary?

Any input or advice is greatly appreciated! Thanks!