@Shwetha Pindikuri,Assuming an FHA loan with a second mortgage can be tricky, but it’s definitely doable with the right lender.

As mentioned have an attorney or title company draft the note and mortgage.

The mortgage has gotten out of hand due to property tax increases, miscalculated escrow, and an increase in my interest rate from an initial buy down, increasing from $2600/mo to $3200/mo.

@Chris Kay beleive you can do DSR loans without a job as they qualify the property, not the borrower.You'd still need 20-25% down though.That's where you have a decision:- Pay down the mortgage, setting yourself up for a future refinance to free up your VA Entitlement.OR- Save up for your next acquisition.Only YOU can make that decision as you have to be comfortable with the increasing debt-load risk and the additional time to manage everything.

My idea to buy a home is to get an 80% LTV 1st mortgage from a bank, take over that mortgage and give the seller a second mortgage for 50% of the 1st mortgage balance because I need some cash to cover the payments, which the amount of cash would be more than the remaining equity in the home.

Louis Fed shows the delinquency rate on residential single-family mortgages, and proves there's a way to spin this data to show that delinquencies are increasing rapidly.

I put the first, largest mortgage in under the loan option in the BP calculator.

Mortgage surveys have a margin of error of up to a foot if I recall.

Covering a significant portion of my mortgage has been a great reward.Solution: My four levels of vetting have helped me find quality room-renters over the last 18 months.I think you already have the answers to your situation.

@Akash AgrawalYou can have single person on mortgageThe issue about deduction is who is actually paying the mortgage?