It's a product of people wanting to hit the easy button.

In addition to FHA, I have a conventional loan with the option to put as little as 3% down as well a speciality product that has lower rates if the property is in a designated area.

Many lenders offer DSCR products on 30 year fixed terms.  

For DSCR, a 3 yr prepayment penalty and paying 1-1.5 points will put you pari passu with Conventional products right now for the most part. 

Does anyone have any experience on working with them and/or their product?

We want him healthy and whole and productive.

This loan product has a VA inspection during your appraisal (nothing scary).

That’s a challenging situation since you haven't defined the final product yet.

Yes, this is pretty normal - generally conventional loans like this are super competitive (since everyones essentially offering the same product) so shopping and finding some deals especially with smaller banks and brokers can yield good rates well under the "prevailing headline market rates"

2nd questions; I Just got pre approved for a non QM product: 20% down, 8.25% interest rate, 12 month pre payment penalty period, 2 points, and Conforming Conventional product: 25% down payment, 8% interest rate, no pre payment penalty, 1 point fee. 2-4 unit in Ohio.