It could be a pre-paid credit card. 

One year and lot take downs start mid Nov. so we will start getting paid down then.. 120 days of pre paid interest. then he can payoff at anytime..

Examine your prepaid costs for insurance and any taxes.

This will determine your options, ranging from:Currently free & clear on a property valued at $110k: Cash out refinance at 75% LTV gets you $82,500 in your cash out (ignoring closing costs and prepaids).

Also consider a portion of your funds for a prepaid college plan if available as you might be able to beat inflation.

@Dani Foster you haven't shared how much in savings you have...FHA loans require 3.5% down and allow the seller to cover up to 6% of the sales price in closing costs, prepaids & escrow amounts.Although FHA allows a borrower to use 75% of a lease to offset the mortgage payments, doubt your $40k income will allow you to qualify for $250k purchase amount.

  $11k prepaid and non-refundable for an upcoming family reunion week rather than $17k+ that the site wanted to charge.

Institutional or registered lenders are often exempt from usury laws, individual, unregistered, private lenders are usually not exempt, check your state usury laws.Paying any fee to obtain a loan is considered points, points are pre-paid interest, points are paid to institutional or registered lenders, not individuals. 

In regards to the two items you noted:1) The unilateral decisions referenced was an open question for a member of the community hopefully with a legal background to opine because I said I did not have one. 2) The comment regarding "closer to a ponzi scheme" is in reference to the practice of claiming positive financial leverage on loans that have an interest rate falsely giving the illusion of positive leverage because interest has been prepaid either through a buydown or a lower than market interest rate cap.

Some recent investment property 30 year fixed financing transactional examples :- 20% down conforming Jumbo at 6.625% with .25% in lender costs and a lender credit - $7500 seller concession - 20% down conforming Jumbo at 6.875%. with 1% in lender costs and a lender credit - $15K seller concession - 20% down conforming townhome at 6.375% with .5% lender costs and a lender credit - 2% seller concession- 15% down non conforming at 6.875% no PMI with 1% lender costs and a lender credit + 1 year PPP  -10% down conforming jumbo second home loan* at 6.75% with .75% lender costs and lender credit  - 50% down confirming at 5.625% with .5% lender costs and lender credit - $5K seller concession - 20% down conforming super jumbo at 6.875% with 2% lender costs and small lender credit - 2% seller concession In the majority of investment property transactions his year we have been able to negotiate seller concession of 1-2% to cover all or the majority of closing costs and prepaid items.