Finished basement with non-conforming fourth bedroom added.

Finished basement with non-conforming fourth bedroom added.

One of the issues though might be the upper limit on conforming loan.

Additionally, have you considered these other options:Buy in your personal name using a conforming consumer loan, then transfer to your LLC per Fannie Mae's allowed exception, D1-4.1-02.  

So when modern zoning became the normal method of determining what a parcel could be you ended up with non conforming uses like this property may be.

First, is the property truly considered a "second home" because that falls under owner occupied territory, which likely you will find a lot of conforming loans, and yes that lower loan limit is very common in the conforming side of the house.

There's no PMI .... that's for conventional/conforming loans.

That being said, most conventional conforming mortgages now allow you to transfer into LLC under certain conditions.

Some people consider multifamily over 4 units commercial, because, from a lending perspective, you are no longer on the residential side of the bank and Fannie/Freddie conforming loans.But commercial could be retail, office, industrial, hospitality, self storage, RV parks, mobile home parks.  

Any lender doing conforming loans will do 85% cash out on 1-2 units.