I would also recommend him to prepare to answer questions such as, how much are you looking to borrow for the property and for the renovations?

It's an opportunity to borrow money, sort of like a credit card.

That would work only if you could borrow from your home equity at less than 3.8% interest, which won't happen if you're trying to refinance now.

Heard that they have the legality to do it due to loss of cause, but the banks don’t usually do it if the borrower has a good record in paying their debt with good credit history.  

What works for one, others will shun, so give real thought to what you really want and need in the way of inventory financing, and then examine the trade offs.Many community owners use outside investors, others use private individuals as lenders with you as the commercial borrower.

So, if you borrow $100K you might actually get $94-95 from the loan.Now, maybe when you say "free" you mean "no down payment".

I borrowed a loan from the same friend who sold me the house for a down payment on an FHA loan.

I borrowed a loan from the same friend who sold me the house for a down payment on an FHA loan.

First, when borrowing funds for the downpayment, that means the property is 100% completely leveraged.

Conventional financing does not require a co-borrower to be a relative.