I have spoken with the banks and they will still loan me even with the money be borrowed for the down payment.  

On the other hand we'd probably have to borrow money to do the foundation and the house isn't currently showing damage/issues for lack of a foundation and that's 20k I'd like to be investing elsewhere.

The Borrower will be issued a time to cure the default and the amounts owed to cure said default.  

If for instance, the borrower was going up to 45 percent DTI and they were between 680-700 FICO and >75LTV wouldn’t the required reserves be 12 months PITI according to the matrix?

Beg, borrow or bribe your way into an access code and password.

My borrower refied us out.

Great start to a long lasting lender/borrower relationship .... not. 

You can always borrow private money to finance your flip?

I just did the same thing, borrowing from a family member.  

Typically, this SPE is an LLC.One other thing to note is that, when dealing with banks, unless your business has so many assets and so much cash flow that the banks will feel secure dealing with it alone, you will personally have to guarantee the loans, even if the legal borrower is the LLC.