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"

2.75-3x is generally fine. 2.5x in really poor areas. 

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.  

does lending one have a long term loan product ?? 

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.  

Too many trolls and poor leads.