Stop reading if you want.2) I couldn’t guess what “There is a 6 months of grace period before interest payment begins” means.3) They call their $3555 charge a “Loan Fee,” stated a few lines up as 2%. 2% of $235,000 (loan amount) is $4470.4) Do you seriously believe the loan fee, “… IS 100% REFUNDABLE IF THERE IS ANY DEFAULT FROM THEPART OF THE LENDER OR IF THE BORROWER CHOOSES TO TERMINATE THE LOAN.”5) It’s okay to pay an appraiser directly.

This was through the Veterans Affairs home loan program.

If I got a home equity loan for Property 1 and used the proceeds as downpayment for Property 2 and then got a 2nd loan for the remaining 75% purchase price for Property 2, when I sell Property 2, can I use the Property 1 loan as part of the cost basis for computing Property 2 capital gains?

I doubt he'll be able to quality for a loan (VA) with just his income. 

Its a tiny loan for any institution.You'll have to get hard bids from a local GC, but maybe $110/ft?

Unlike a mortgage the interest on your loan will not be tax deductible.

Loan interest is deductible based on the use of the loan, not the asset securing the loan. 

Please follow and message me so we can connect! I am looking to close many deals in 2025!!!

@Sara Habtom yeah, you will absolutely have loan options.

Quote from @Juan Ruben Cortez: I believe the funding fee is 0.5% of the remaining loan balance, plus maybe another $500 - $1,000 in lender fees.