Of the applications I get back, they tend to mostly conform to my requirements.3.

The property has a main building with two conforming 2/1, one non-conforming 1/1 garden unit which I recently renovated with upgrades, and a non-conforming CH over the garage.

These homes all have conformity, which makes the ARV easier to figure out.

I've heard of people buying large number of bedroom homes here and in seller favored markets like Denver, taking over group homes or other houses that are 3-6 bedroom, or large properties in square footage that might not all be permitted and make them conforming, etc.

@Will Dixon the way a conventional, conforming loan (Fannie/Freddie residential loan) is underwritten is entirely different than a commercial loan....or a loan you would get on a 5+ unit property.  

I used an FHA and house hacked, but now am stuck paying $252 in PMI every month, and the only way out of that is to refinance into another loan which will cost several thousand in closing costs.I will say the criteria to qualify for these other low down payment programs at banks is stricter than the FHA since they aren't government conforming/guaranteed, but worthwhile to look into nonetheless and see if you qualify so you have added flexibility down the line.

There are conforming lenders that require the property be in your name. 

If you mean a conforming loan that will be securitized by Fannie or Freddie or FHA, than the condition will dictate.

@Alan Becker @Rick PozosAlternatively to a re-zone the city does have a non-conforming use application and process. 

Generally, your smaller banks and credit unions will have more flexibility, as the larger banks will only want conforming loans they can sell to Fannie/Freddie.