I've been told I need a RMLO to write the mortgage for me, but loan officers around here seem to think that's crazy talk.

Lenders assume more risk with a higher loan-to-value, so to compensate they'll charge more in points, loan level price adjustments, etc. 

Run the numbers you may do better long term or renting as a whole unit.

In today’s competitive real estate market, where inventory is tight and opportunities seem few and far between, many potential buyers are overlooking a game-changing option: renovation loans like the 203(k) and HomeStyle.

So if the house is worth 300k and you owe 200k then most you could pull out would be 40k (minus costs) and it would be a second mortgage most likely which would be expensive. 7.5-9.5% likely.But, you can put as little as 15% down for a conventional loan on a single family.

Are you looking to flip or for long term?

for this property Ill be doing a conventional loan. 

What terms is he offering (monthly payments, amortization, balloon, etc.?

I can either purchase the land for 150K+ rehab cost with hard money lender.Or pay what they owe (50K) and get a construction loan and pay them after I refinanced the ARV.

I was looking at DSCR loans because they don't require extensive checks like the bank loans and they "only" look at the income generated from the property to qualify for the loan.