That would be around 2.0% higher than a conforming conventional borrower at around 4.0%.  

These banks can offer products called portfolio loans, which are not subject to the same regulations as "conforming" loans.

You can get up to 10 conforming mortgages, you will need to find a mortgage broker that deals with investors, they will know what lenders will go to 10 (some won't).The biggest difference between mortgage 4 and mortgage 51.  

-"Also each brokers office have their own rules. just as an fyi"Learning the basic concepts and becoming familiar with DU underwriting with Fannie will help any investor when dealing with conforming products and national lenders.

What you have in this case, is a property which in the end conforms to the 2% rule, which also provides for growth relative to valuation.  

They keep a lot of loans in their own portfolio so they don't have to always conform to Fannie/Freddie regulations.

Since your putting this in an LLC, you can't get a conforming mortgage, you will have to use a commercial loan.If you want to go the conforming mortgage route, you can't loan the money (like a hard money loan) to yourself, but a brother, cousin, etc, that doesn't live with you can (I've done it before),, you have the title company draw up a loan with the closing paperwork.When you finish with the rehab you go to 'refinance' your mortgage with a traditional lender, not a  problem (or at least I haven't had one).My mother was getting 1% on savings, and I was paying 14% interest to a hard money lender, which made no sense, so we started doing it this way, she got 6% interest, and I felt like I was helping her out,,everyone won.Don't have a spouse loan you the money, keep it someone that doesn't live with you (I know someone that did that and it caused some issues)

So what I was talking about before with the 2 years experience - that is a Fannie/Freddie requirement (the link I provided) and they can only sell it if it is considered conforming to the Fannie/Freddie guidelines.

Until my loan officer told me yesterday that because the appraisal found that it's "Legal, non-conforming to zoning (Grandfathered)" it may affect the property's eligibility with VA due to zoning issues because if it burns down it could only be rebuilt to a SFH.

Fannie Mae (and Freddie Mac) buy "conventional" loans that conform to their rules.