Your personal loan has a 5 year balloon period.  

@Cody Caswell there's several things to ask about here that might not be answerable in a forum:- Why do you need an FHA loan?

Their character, their payment record, how well they take care of you property, etc all these things are for you to discover with your tenants and build trust between each other. 2. when it comes to screening, you must check their credit, their paystubs, their employer and landlord references, their criminal background, I also get a copy of everyone's photo ID.3.

The balance on my bridge loan is $120,000.

Quote from @Juan Ruben Cortez: I believe the funding fee is 0.5% of the remaining loan balance, plus maybe another $500 - $1,000 in lender fees. 

They are just going to use their 2nd VA loan to buy their next one while this one is tied up. 

Stop reading if you want.2) I couldn’t guess what “There is a 6 months of grace period before interest payment begins” means.3) They call their $3555 charge a “Loan Fee,” stated a few lines up as 2%. 2% of $235,000 (loan amount) is $4470.4) Do you seriously believe the loan fee, “… IS 100% REFUNDABLE IF THERE IS ANY DEFAULT FROM THEPART OF THE LENDER OR IF THE BORROWER CHOOSES TO TERMINATE THE LOAN.”5) It’s okay to pay an appraiser directly.

If I got a home equity loan for Property 1 and used the proceeds as downpayment for Property 2 and then got a 2nd loan for the remaining 75% purchase price for Property 2, when I sell Property 2, can I use the Property 1 loan as part of the cost basis for computing Property 2 capital gains?

Unlike a mortgage the interest on your loan will not be tax deductible.

I doubt he'll be able to quality for a loan (VA) with just his income.