The institutional firms that do this type of lending (we deal with them every day) have to "securitize" the loans...meaning have their hedge fund/Wall Street backer bless the deal.

@David Matarazzo  Did either of you move forward with them for property loans?

Plus the mortgage company probably calls the loan, and if you can't pay it off then you can lose the property.

@Son D. the borrower paid off the loan a few months ago. 

in what I just laid out, you'd make monthly payments to the seller just like you would to a bank for 5 years, and then the remaining principal balance of the loan would be due, at which time presumably you would refinance the house into a commercial mortgage and use the proceeds to pay off the seller. 

For a 203k loan, you’ll want to target areas that have properties needing work but also a strong potential for appreciation after rehab.

5% Downpayment on a Conventional Loan How did you add value to the deal?

FHA loan with 5% down, plus a seller credit of $8k How did you add value to the deal?

Quote from @Jaycee Greene: Hey Jaycee, we currently lend on several loan types: Fix & Flip up to 90% LTP, BRRRR, New Construction, Bridge Loans, & Multi-Family.For myself personally, I'm looking in the Orlando, Philadelphia, and Southern NJ markets, 1-4 units.

Refi the house so they can continue to live in it, they will get the best loans on their primary residence.