The mortgage company gets paid off first, then in a traditional sale, the rest minus agent fees and utilities and closing costs goes to the seller.

@Kay S.Assuming you are getting title insurance (which I recommend) the closing costs will be similar to a traditional closing.

The builder usually has some type of warrenty other than that closing is pretty traditional which would have been similar to your first house. 

It’s like giving the home a sense of place..a nod to local design traditions while still making it feel fresh.

     * House is a 2699 sq/ft Single Family Residence| 3 beds, 3 bathroom | Built in 1956 | NO HOA     * There is a chance I could pay only interests so I can start saving some cash for the incoming maintenance and annual payment equivalent to the 12 monthly payments (~$5,029.77 per year during the balloon period)The advantages I can identify in this deal for me are:* Lower interest compared with traditional loans* Lower down payment compared with the ones compared for traditional loans* House is technically ready to be rented (waiting for the inspection) * Forecast - 3 yr growth (appreciation) is expected to be 8.1 % (Bigger Pockets)The disadvantages I can identify: * I am still vulnerable to foreclosure if sellers don't make mortgage payments to the bank.* Refinancing issues at the end of the Balloon Payment?

I patronized a Chinese Restaurant located on the main street in Dunnellon NJ, had a major fire, and could not be rebuilt the as before, i.e. with the apartment upstairs.

And I would find a decent job to utilize to help get traditional lending with.

That's not the topic of discussion - we're talking about saving INTEREST using a HELOC payoff strategy versus a traditional monthly payment strategy.

We got it appraised for traditional financing and it came back at $3.125M so we were able to get our investor their $1.5M back.

Why are you looking at PML vs traditional financing for this type of deal?