Conventional rates start at 5.25% at a 30 year fix.

You can use FHA with 3.5% down or Conventional with 5% down for a property liek this. 

And are they riskier than a typical conventional loan? 

Sadly, FHA has a 2 year work history requirement, as does Conventional and USDA financing. 

You also get access to conventional financing. 

If you update to max number of conventional units, you will be able to add an ADU for each conventional unit

There's also the conventional loan program CHOICERenovation by Freddie Mac.

Conventional How did you add value to the deal?

The people who write it are backend programmers, their is no user interface or anything, it is a raw portal, All systems with an API are like this and they are very convent if you have someone who knows how to use them.

That is important when considering a conventional conforming loan.