Having a simple written agreement of loan terms and responsibilities of the two parties is always nice and it doesn't have to be from an attorney just something clear that you both understand and agree to with a signature.

Hi BP,I've applied for the new 5% down multifamily primary residence loan option for a 3-unit property, but keep getting denied at the Automated Underwriting System (AUS) stage. 

Does it make lenders wary of giving you a loan for your personal home purchase?

From the perspective of our team here, we utilize soft credit pulls for 3-4 loan programs that have rehab and 30-year fixed financing.

These loans are all 30 year fixed rate loans.

This was part of his loan application:"The only fee charged is for the Loan Protection Insurance (LPI ) whichis charged at 2% of the loan amount and has to be paid before closing after signing our approval contract then we proceed to disbursing the fund into your provided account as soon as the loan is duly insured."

Their loan would not be paid off, you would make the payments.

The deal was financed through a combination of personal savings and a hard money loan.

@Schuyler Covert you need to have an attorney draw up the loan documents.

LLC or Land Trust vesting is never stopping the existing lender from calling the loan, in fact the opposite, it may trigger it.