@Ryan Daulton,You don't have to buy a house in SDIRA without a loan; you can easily get a loan, but it must be non-recourse.

They will go up to 100% loan to value or LTV (or used to). 

Quote from @Nicholas Dillon: I read somewhere that you can request to have your mortgage insurance dropped once your Loan to Value reaches 80%.

@Brandon MorganIf the loan is in your name I would not put it in LLC I would just a good insurance policy.

After funding 2,000+ loans across the country I know most lenders will have issues with these 2 things.

I have spoken to lenders about traditional financing and also DSCR loans.

Option 1: The loan that the owner has is an assumable loan at a 3.875% rate and still has about $265K.

Unless it’s specified by your loan type or lender, you don’t have to.

Your answer needs to make sense, and be true.Also refi'ing your current primary into an investment loan also has the potential to be fraudulent if your family still occupies it as their primary. 

They finally get back to me after the close date to say they need more time because they are try to cross collateralize their other properties to make this deal happen and the bank they were using doesn't do this kind of loan.