Here are some general guidelines: Lien Position1st Position LienEquityMinimum Down Payment of 20-25% (a 30% equity to sale price is preferred)Down Payment made in certified funds and not borrowedMaximum Funding of 70% ITV (Investment to Value)SeasoningMinimum of two monthly payments already made12 months or more preferredPayer CreditCredit Score of 650 or higherNo major derogatory trade lines (No 90-180+ days delinquent, foreclosure, repossession, bankruptcy, etc.)No decline in credit since purchase of businessTermsPrefer 60 months or lessMaximum of 72 monthsNo Balloon Payment preferredCash FlowBusiness has positive cash flow1.25 debt service coverage ratio preferred.DocumentationPersonal guarantee from a creditworthy individualStandard documents including Note, Security Agreement, and UCC-1 filing.Tax Returns on the business that substantiate profit and loss statements.OtherPayment history current and verifiablePayer Interview indicating buyer is satisfied with business and comfortable making paymentsMotivation for selling the note is not a result of a deteriorating businessConsideration of high risk businesses or geographic areasIn these situations, sometimes a partial is a better option. 

Interest rates are pretty universal across country, you are in a high demand, high cost area.  

If you are looking at FHA because of credit score, then I would work on credit scores to qualify for conventional financing or see if you can get a very strong coborrower with high scores.  

If you meet that requirement, I highly recommend it. 

I am a 24 year old who's employed in the CAF and looking to getting into real estate, more specifically BRRRR.After looking online for quite some time I've noticed how high Canadian real estate is and I wonder if it is even worth getting into.

And therein lies the risk of high-leverage.  

Underwriting is highly overrated by new investors.

The issue is our land value is high, so the structure value is low compared to the overall property cost. 

I am assuming here, but if it's been on the market so long, it's priced too high for it's condition. 

I think my fees are high until I shop around and then I am thankful.