These strategies can allow you to acquire properties without traditional bank financing, which can be beneficial given your current DTI and income situation.

Can a builder Covenant try to restrict renting a room from "house hacking" in a primary home?

Yes, most large traditional lenders only focus on 1-4 units and other properties that fit into a box. 

And why is it that every single home - whether its a rental cabin or primary residence - doesn't have to have a sprinkler system?

You’ll be able to access more equity in your primary vs a rental property, and the rate will be higher.

@Julie J.My recommendation would be to wait until you can afford a home with traditional financing.

I assume the sellers are offering seller financing since obtaining a traditional mortgage or refinancing to one after 7 years for this property is highly unlikely.

I recently took out a Heloc on my primary home to do a repair and consolidate some debt.

I was going to use this home as my primary residence and do the 203K loan to build a ton of equity How did you find this deal and how did you negotiate it?

These loans allow buyers to purchase a property “AS IS, WHERE IS”.Renovation loans are available in 30, 20- and 15-year fixed rate terms and can be used to purchase owner occupied, second home and investment properties.By time the renovations are completed, the home needs to be in move-in, live-in condition and conceptually ready to be resold without repair issues.Other Important Items to Know about “Conventional” Renovation LoansMaximum – Minimum Purchase/Upgrade Amounts:Maximum: Limited to 75% of the “after improved” valueOccupancy: Primary, Second Homes, Investment PropertiesUnits: 1-4 unit propertiesRenovation Term:The renovation term for this program is a maximum of 180 days.The Borrower(s) is responsible for the work being completed within the escrow period.