Quote from @Jaycee Greene: Assuming you pay asking price, I'd estimate the down payment for something like that using a hard money loan (HML) would be around 40% of the purchase price and your monthly payment would be $2,600 with an interest rate in the low 7% range (probably need a 700+ credit score to get that).

The problem was, they only had enough money for a 3.5% down payment and an FHA loan.

Again, the $600 interest threshold is per loan, not per person.But this was not my money!

I can say you and I are probably in similar shoes.Currently I am working on 2 single family homes with this strategy, with the help of my realtor and mentor,Gloria N Gear.

For example, I have a loan that's at 0.97%. 

From my experience, you can use that savings to house hack with an FHA loan, invest in a turnkey property in a more affordable market, or even partner with others to expand your purchasing power.

But it’s something I tailor the business plan to just in case.So your investor could get caught in having their loan called with not a lot of notice if things change.

In response to your original question, closing agents should handle private loans just like a bank loan. 

If you are moving from your SFR to another property, then you should be able to get a 5% down loan or even 3% if it's FHA.  25% is only if you won't be living in the property in my experience.

I've been self-employed for only 6 months, and loans are proving difficult to come by despite my great credit (not to brag, I'm moreso frustrated and seeking help).