there are local banks that will loan on more and some big banks will loan on 5-10 as well with stricter guidelines.

Yes, I am on the cautious side, but am I missing something or is this strategy just the replacement for no money down and gamble the wad?

As rehabbers we are attempting to bring the house up to acceptable standards within realistic financial guidelines.

Good looking out Brian, here in MI they are a bit easier on condition. " has to be habitable." scene I left the mortgage biz back in 06 when I was writing these loans, there has been a gazillion guideline changes so why should this be any different right?

@Val Csontos I have a copy of landlord right handy, but I think I will take your recommendation and call the court house or stop by to pick up their latest guideline.

It must have been a cash purchase and you can only take a maximum of 70% of purchase price (somewhere around there).After 6 months you are no longer eligible for the DF, however Fannie guidelines only require 6 mo seasoning so you can then get a cash out refi using a new appraisal value at that point.

Lenders have to provide end of year statements and follow certain guidelines for applying payments, etc.

Private lending is a relational and case by case basis often.HMLs are doing this professionally so they will have stricter guidelines but they aren't always going to be set in stone since, unlike a bank, they won't want to miss a good opportunity that doesn't fit a particular set of check boxes on a form.That being said if you want to get a loan with minimal skin in the game you will have to have something amazing.

@John Jackson with the current guidelines in place what would be the best way to structure a LO/A that would be beneficial to both seller and tenant?

Any kind if guideline would be really appreciated .ThanksPam