Most loans are sold to those two entities.  

If you want less leverage simply put down the funds you would use to pay down the 6.4% rate on the new property so you are at say 60% loan to value on the new house.

I'm looking to use a Fannie Mae Renovation Loan. 

If its just deed than an attorney can redo deed and charge a recording fee but if a payment missed and mortgage company finds out they can request a total loan repayment.  

Hi Kevin,I'm a licensed loan officer in the state of Florida, if you'd like to schedule a quick call, DM or email me!

Not a lot of distressed sellers underwater on loans.

I see too many investors now, put a significant amount of money in rehab costs and over leverage themselves on hard money loans with low down payments, their properties are not selling and they are lucky to just payoff their current hard money loan via a DSCR refinance. 

Are you pre-approved for a construction loan? 

5% down federal loan How did you add value to the deal?

If so you could run the numbers on taking a loan on the zero-debt property to pay off the other.I'm still unclear on the goals - you've brought a lot of other things into the equation (e.g. paying of high interest debt, STR as personal vacation home, stocks/dividends, etc.).