Please eval MF Financing

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Quadplex (1 roof) set up with 4 front doors, 12 bedrooms total- accepted offer of 270k. We plan to convert to 12 rooms of student housing. Currently 3 of the 4 units are rented by families but we plan to let those expire and then rent out individual rooms within the units. Here are my financing options, please let me know if these are competitive. This is a local bank. I'm happy with the service so would like to use them if they are similar to what I'll get elsewhere. I couldn't qualify for conventional mortgage on this due to the 12 room set up. Or so I was told. Loan 216,000 (20% down) 15 year term 0.25% origination fee of loan value 4.5% fixed 5 years then reset to WSJ prime + 0.5 every 5 years. I've asked for a period of 6-12 months interest only and for a 20 year term and are working on it. He said 20 yr will be around 5% Thoughts?