Getting a construction loan without formal building experience is possible, but lenders often require a licensed builder or contractor to oversee the project.

Loans Not Owned by Freddie or Fannie If your loan is held by a private lender or another institution, it’s important to evaluate the interest rate.

Most DSCR lenders will go up to 75% LTV on the new appraised value with 90 days title seasoning.

We are a direct private lender headquartered here in Maryland but lending up and down the East Coast and out to the Midwest.

@Timothy Hero community banks and credit unions are the OG DSCR lenders.  

As for non-bank loans, I'm familiar with a loan program that provides 100% financing, but it requires a minimum 650 credit score and proof of funds covering 12 months of interest.

Start with your current lender on your home and see if they will give you one.

You've left it to us to assume that you are charging under market rent which doesn't cover your costs. 1) Once you've figured out what you could be charging the public, knock a little off for a friends/family discount and present them with legal leases.

Nothing about this part of what the lender said sounds off.  

This is not a one size fits all answer, but bad debt is non-asset based or depreciating assets - , credit cards, medical, buying dumb stuff.Good debt is debt used to make or grow your portfolio.