I am a VA loan specialist with The Veteran Lending Team and a proud Marine Corps veteran. 

The plan was to utilize the HELOC as the down payment then getting a conventional loan to cover the remaining 80%.

More on DSCR loans: DSCR loans won't use your income to underwrite the loan. 

The most successful loans are those that do not procrastinate and get the appraisers In ASAP so you can get over any unexpected bump in the underwriting process.

and then getting a standard mortgage after that vs. getting a construction loan to pay during the build and then convert. 

However there is one bank in Croatia that helps foreigners with loans.

The institutional firms that do this type of lending (we deal with them every day) have to "securitize" the loans...meaning have their hedge fund/Wall Street backer bless the deal.

Look for off-market deals, seller financing opportunities, or even house hacking a small multi-family with an FHA loan (3.5% down) if you plan to live in one unit.For creative financing, explore seller financing, subject-to deals, and lease options.

@David Matarazzo  Did either of you move forward with them for property loans?

Lucy: your story shows that setting up a loan is more than just interest rate and other terms.