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.

I would check out Craig's book (https://store.biggerpockets.com/products/the-house-hacking-s...).

The advantage of using a new build, when available, is a first-come-first-served environment instead of the multiple offer pay over list market in resale product.  

And after that, want rocket fuel for economic PRODUCTION, not just BS numbers, CUT entitlement programs, except health care, elderly and handicap, by 50%.

However, I do not plan on investing in this area due to hurdles of entry such as expensive product and high competition.

I know which product that you are referring to. the conventional mtg product has the following features. 1. minimum 15% down payment 2. 30 yr fixed term 3. rehab and repairs can be included in financing 4. borrower can be a first time investor. 5. no prepayment penalty. 6. the contractor will receive an initial draw at the closing table. 7.

This might fall into the 20 year, ARM products.  

I have known him for 16 yrs and he has spent his entire career in retail leasing, primarily on grocery anchored strips, like FNRP's product.  

Like Nate mentioned, choosing the right lender will depened on the type of loan product you are needing.