The lender is pushing you to do this to get an FHA loan.

Stop reading if you want.2) I couldn’t guess what “There is a 6 months of grace period before interest payment begins” means.3) They call their $3555 charge a “Loan Fee,” stated a few lines up as 2%. 2% of $235,000 (loan amount) is $4470.4) Do you seriously believe the loan fee, “… IS 100% REFUNDABLE IF THERE IS ANY DEFAULT FROM THEPART OF THE LENDER OR IF THE BORROWER CHOOSES TO TERMINATE THE LOAN.”5) It’s okay to pay an appraiser directly.

These are the outstanding balances of loans to and from Partners and Related Parties.

DIRECT MORTGAGE LOAN COMPANY6.

I had a flipper come to me asking about doing a new development.He would need $240,000 to purchase the land from a wholesaler and then he would have his GC partner get the construction loan but they cant get the loan if their is someone else that has a lien on the property so i would have to collateralize against one of their assets which they don't have.

The plan was to utilize the HELOC as the down payment then getting a conventional loan to cover the remaining 80%.

Yes I know about the VA loan (no down payment) and VA disability payments, more on that later.  

LTV would be determined by the type of loan.

Check with your lender first—they may allow it if you personally guarantee the loan.2.

OO loan seems like real long shot.