Most loans are sold to those two entities.  

Knob and tube is very difficult to insure. 

Your US bank won’t finance in Belize.If you’re talking a loan in Belize.

For a 203k loan, you’ll want to target areas that have properties needing work but also a strong potential for appreciation after rehab.

i fyour getting paid off when the vertical loan goes on.. then your in first position . so not sure what the issue is? 

Having owned property in rockford its not a great appreciation area so getting a HELOC will probably take 5-10 years based on loan pay down and maybe some slight appreciation.

Sounds like you're asking for a private lender to go into second position to convert equity into cash behind an existing loan on these properties. 

The insurance payout also impacts your taxable gain.

However, after talking to some loan professionals, it seems that there are always origination fees, appraisal fees etc.My question is, what fees should I expect to pay when opening up my first HELOC.  

If you are trying to get a cash out refi, I would think the bank would want to see the correct type of insurance for the business you are running.