I am in the inspection period of a non-conforming R1 zoned triplex located in central Tucson.

The property is non-conforming which means; when it was built the rules were different and it complied at the time, but the rules changed and now it’s out of compliance very common occurrence.  

We had put in 30% down to keep the loan amount conforming when we purchase it as our primary home 10 years ago.

This would allow you to use traditional conforming loans until you maxed out your number.

That's about the difference, as far as I know.I pledge: To strive to be honorable and to abide by the Golden Rule;To strive to serve well my community, and through it, my country;To abide by the REALTORS'® Code of Ethics and to strive to conform my conduct to its aspirational ideals;To act honestly in all real estate dealings;To protect the individual right of real estate ownership and to widen the opportunity to enjoy it;To seek better to represent my clients by building my knowledge and competence.

@Asem AbuAwad lots of comments above but if you have rental in Texas you need to conform to state laws in this regard. 

Thank you for the conformation and added ease to hopefully explain it to the current owner.

Following the BRRRR model, if Gary wants a conforming loan as permanent financing on the subject property, the lender must comply with the rules.The rules for conforming loans come from Fannie/Freddy.  

I would recommend meeting with your lenders to see if there is an opportunity to refinance and for approval limits.In AZ - $510,400 is the largest amount that is still a conforming loan.

The appraiser will surely notice this and will put on the report which will make it non conforming house.