The number an LO or mortgage broker puts into a computer is not what lenders actually lend based on.

I recommend speaking to your LO.

Hi @Anthony Portugal,Nothing jumps out at me, except that you are posting this on BP because your LO apparently doesn't think it's important enough to make time to explain it all to you... that doesn't bode particularly well for how it's possibly going to play out once in contract and paperwork is flying 100 mph!

Find a mortgage broker or a retail LO that specializes in refinance transactions.

Hi, @Chris Pebley,I'm a fellow LO resident renter who hasn't pulled the trigger on a home purchase yet, and also interested in REI (mostly passive investing but also advanced financing solutions).  

Then there's always the chance that the zoning, if to be placed on private lo/parcel  may prohibit homes beyond a certain age and if its going to be installed in a MHC the manage may not allow anything older than 10 years. 

A mechanics lien is worthless until you sell/refinance the property.It sounds like what the LO is trying to do is generate a ML for 90% LTV on a free and clear property and then when the refinance kicks in, they'd have to pay that off and you'd be stuck with a 90% LTV loan and have 90% paid out.This is straight up mortgage fraud and not legal in any way, shape, or form.If it sounds to good to be true, it usually is.

Lo and behold when I get the loan closing cost details I also see an underwriting fee  of $945, a processing fee of $895 and appraisal fee of $620.  

Let me know if you need an experienced WA licensed LO to get you pre-qualified before you make the trip out here to pick out homes.Good luck investing!!

It has since melted and lo and behold you can see where they had nailed down tarps to cover the roof.