Have you all dealt with banks and borrowers before?

Must be the borrower's primary residence.Based on that, you would have to refinance out to a different loan if you planned on moving out. minimum FICO of 660 for single family homes. 700 for 2-4 unit homes.Must not exceed 100% of the annual median income for your county, which is $76,000 for Cook County Illinois as an example.You can use their eligibility tool to look at other areas. https://homeready-eligibility.fanniemae.com/homeready/

Also, if it is a note secured by real estate it will be best to list the IRA in firs position in the event of default by the borrower.

Obviously the more skin in the game a borrower has the better. 

They may want to hold the note and hope the borrower starts paying again.

Another thing you should consider is to get your investment borrower figured out.  

Bad credit scores affect the ability to borrow money at all, what interest rates offered if someone can borrow, the ability to get insurance at all from some companies, the premium rate if they do get insurance (premiums can be as much as double normal, with bad credit) and the ability to get certain jobs.  

Let them know that you will borrow the money at 6% or 8% or whatever you two decide on.

I could borrow 1M and payment would be $10,600/month roughly.  

As long as people need a place to live and have to borrow for the right to own, there will be notes.