Those loans are not governed by RESPA or Dodd Frank and your HML is trying to make sure that there is no gray area where a regulator could think you're using an HML to purchase an owner occupied property; particularly if he doesn't have a NMLS number.For the most part, people who invest in real estate buy their first home to live in it, not as an investment and it's a red flag to a regulator. 

@Spencer Gray I'm beating those numbers significantly.

@Jerry Thompson I was thinking of the same thing!

Key words: Thurston County, Olympia, Pierce County, Seattle, Tacoma, Rehab, Washington, contractor, GC, Grays Harbor County, Mason County, Lewis County

At some point, if there are enough of these "irrelevant paperwork imperfections," it's going to basically enter the gray area where we aren't sure if we should be calling it a "portfolio loan," or a "hard money loan," because of the rates/terms/points/etc, in which case you should just skip the hassle and get a true hard money loan.

Although I wanted my first property to be in Thurston County, I had been looking more in Grays Harbor County because the property prices are lower and we do not have a bunch of capital available yet.

@Reese Thompson  Hello Reese,  I have a bit of debt i want to payoff and would rather pay the cash for a property and have the renters pay the debt, and keep the asset.

Reese Thompson I do not plan on living in one of the units.

@Reese Thompson thanks for the tip, I will give Smart Start a look.

This topic on a whole is pretty confusing and there are a lot of gray areas.I'll edit later once I get home with exact verbiage.