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.

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.

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

if you need $200K for a project, no one is going to loan you $200K - you need a down payment, holding costs, and you need to know what you're doing or you'll just turn that $200K into $150K.good luck

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. 

I would highly recommend doing a renovation loan like the 203k or homestyle - you are able to leverage SO MUCH CASH for such a low down payment. 

With VA loans, you’ve got a huge advantage to get started with little to no money down, and military bases are perfect for long-term or short-term rentals.