Welcome to the world of bank loans!

When you are dealing with community banks, they actually like to see diversified ownership. 

Big 3 bank is going to just let this go. 

Make sure you are using an FDIC Fullly Delegated Bank. 

As lenders, well issue a prequal/preapproval letter if we've analyzed your income, assets (bank and brokerage statements to establish that you have the liquidity to afford the down payment, closing costs, and reserves), review credit of the guarantors, review the relevant experience to ensure that we're not throwing our money away on newbies that are wandering around in the dark, and have put together a reasonable plan of attack for the project.

No, banks do not allow a seller held second now a days due to risk and new guide line changes. 

The last forecasts I have seen from major banks and the MBA are still expecting rates in the 5.9%-ish range for spring 2025 (Q2) and that does not make any sense to me given what I see.

Quote from @Jason Wray: Jessica,A lot of those moves puts your money into different properties rather than in the bank where it belongs.

If your using financing the bank requires this.

You might want to check with local credit unions or community banks, as they’re often more flexible with second mortgages.