Even people who use equity proceeds on a vacation or a new car or to blow at the casino or whatever - they can still deduct primary residence loan interest on Schedule A (or wherever appropriate).

Hubzu is legit, but works better for the seller than the buyer.

But if you disclose the name of the lender we can give you some thoughts as to whether or not they are legit.

I am trying to locate a legit company with 100% financing.

All the work seems legit but my problem is this.  

Remember, Your primary target market in that area are vacation home buyers and first time homebuyers....and in that area some prison but lots of casino employees. 

You'll need a preapproval from a legit lender, before the bank will consider a purchase contract from you.  

And if they see that you've got legit gals and guys in there working, with the logo of a reputable local firm (with good Yelp reviews etc) on the work pickup parked out front, that will not hurt either. 

Quite a few investors used their RE license to list short sales below market on the MLS, then ignored legit offers to make it look like they weren't selling, and then had their own company make a low ball offer in order to truly defraud the bank.

But if you have dealt with this investor before and it was legit then I would proceed but with big time caution, for sure.