We financed a medical office building and the borrower filed multiple bankruptcies, switching ownership interests, etc.

But thats how you do it.. talk to a Senior escrow officer or if your in a Attonrey state a decent closing attorney they will know.

I had a similar property (commercial, 6k da ft, 3 office spaces).  

I am a transitioning Army Officer who has been moderately successful in real estate investing doing live in flips between military destinations.

Contact your local government zoning office and they can help you understand what is permitted to be built there and the permits you require.

My advice would be to have a banker/broker/loan officer pull her full credit report and take a thorough look at everything causing the low scores.Quick fixes for just score improvement can be having a family member or a partner add you as an "Authorized User" on a credit card with a 30-40% credit balance to credit limit ratio. 

Thanks everyone Your loan officer just messed up and didn't realize that a duplex requires 15% minimum as an Owner-Occupied home for conventional loans

@Lesley Resnick There is a attorney named Daniel Copeland that has an office off of old kings road that can set this up for you very economically and tell you all the details.

He also said that he would be able to pay everything back before the eviction goes through so that might be another reason why he's not as worried about it.I talked to a law office today and I think I'm going to start heading down that route.

Using a promissory note (which spells out the terms) and a deed of trust which should be recorded with the county recorder's office (which is your debt instrument which liens the title of the property for the amount owed) is the best way to construct this deal you have with your family member.