Banks, particularly smaller banks who provide real estate loans are increasingly focused on their borrowers maintaining depository relationships.

The 1st position loan is paid off but has a second position heloc on the home with 50k balance.

To summerize, a DSCR loan, aka lite doc or business purpose loan, uses the rents you receive on the property and divided by the new loan PITI to receive a ratio.

If you take a loan to pay for your mother-in-law you are taking on that debt in your name.

Many Realtors will suggest purchasing a property using a FHA Loan, to reduce your out of pocket money.

@John BowensAre you loaning from a pre-tax 401K or did you convert to Roth and then loaning from there?

From my experience, when I dive into the costs associated with building an ADU—including construction expenses and financing options like hard money loans—it often doesn’t make financial sense.

He can put the money into a savings account.Her excuse is that she had to pay off her student loans because I left her high and dry after our divorce.

Most lenders will for try to send you down other roads first such as a loan mod or short sale, before they agree to DIL. 

Can you go a little in to how you were able to pay the loan with the HELOC.