Also would charge points at origination and bump the rate up a point or twoReason being my guess is this borrower can it get conventional financing so they are a higher risk.

Typically Conventional will end 42% of DTI and FHA can get up to 51% DTI (and based on your credit score I think you should stretch to that 51%) Just a few things to start thinking about as you are working through the process. 

Fix it before the next month.These are mostly conventional loans.

I expect conventional to be lower than DSCR.  

I know of a lender that offers a 0% down, owner-occupant conventional loan that is a fantastic option for househacking.

Digitize physical receipts for easy storage and use a consistent naming convention for easy sorting - 2024.03.25 Home Depot.- Maintain proper records, such as contracts, settlement statements, and promissory notes.- Additionally, you can track income and expenses consistently using software or spreadsheets.If you track everything, you could show a loss and use that to offset other earned income (such as a W2) which will net you a bigger refund.

Once the project is completed, the plan is to than refinance into a conventional mortgage. 

The one thing you need to know is that buying the next deal (home/SFR/Townhome etc.) will stall you from buying anything on FHA/VA (gov backed) for 2 years and conventional for 4 years.

Paying a f/f conventional loan early is boggling to me.Best wishes

There might be some hoops to get through with conventional financing with your income situation, but if that doesn't work, you could use a debt service loan.