It may or may not show on a credit report, depends on the servicing and you should have the loan serviced.Failure to include the debt on a future loan application is mortgage fraud, wanna go to jail?

And you have to pay PMI for the life of the loan.

Sounds like the house is not local to you, OP.

Is he just looking to have no house payment?  

I can say from having taught classes on these loans that your contractor will be the biggest key to your success.

Now my investor network as expanded and the best split I have experienced was 65/35 in my favor but I invested 40% of the cash and created over a million in imputed equity before any investor dollar was raised allowing me to originate a bank loan at 87% LTC.

what kind of loan?  

There are services like Blockfi, Unchained Capital, and many others will will give you a short-term loan backed by your crypto assets.

If it is someone you know you can give them a straight return as if its a loan - can provide a lower interest rate to provide upside - it really depends on the lender and what are they concerned with and what is their risk profile. 

I just re-read and realized you're talking about getting loans for lien position 2, is that correct?