Have two years of W2 income, RE goals, and start talking to lenders about getting pre-approved.

My concern is that if i apply for a HELOC to use for the down payment before i apply for a mortgage, A) I wont get approved due to my DTI ratio, and B) I wont get approved without first showing the bank I have the 20% down payment before pulling the HELOC.

If the seller accepts the offer, (contingent on appraisal[as per court approval requirement]), How should i proceed in the situation.

The house is 60% completed and will complete 2 years that construction started (2 years after permit approvals).

They found it out, andI had to go to the planning board and zoning board, hire an engineer and architect to make the fourth unit legal.In my opinion, the realtor should have verified the zoning, and if you used bank financing, it's pretty rare for the bank to miss it as well.You are probably going to have to hire an architect to draw plans and to get it approved as a triplex.I wish you luck.

At least I hope so, because I am invested in another (unrelated to ODC) mobile home syndication that had to suspend distribution and now restarting. 

Do you have your finances in order now and a pre-approval so you know what price point you should be targeting?

If it's over that limit then it's something they would need your approval before getting the work done and paying it.

You can provide a loan modification approved by the bank to be accomplished immediately upon the purchase of the note, this, along with the waiver and request for the sale by the borrower takes the bank's liability away selling a note to a non-banking/mortgage broker type buyer.

I would advise you to get pre approved from your lender and make them aware as it will help them understand you are serious!