Reason why is because FDIC Bankers "Do Not" charge points on traditional programs like primary homes, standard investment purchase and refinance, Second home/vacation homes.Lenders, Brokers all charge points to meet their Loan officer compensation plan (commission).

It’s great that you’re pre-approved, but I’m curious why you’re leaning toward traditional lending instead of hard money, especially for a flip?

That can hurt your cash flow and could equate to the same as a traditional long term hold without the headache and management.I'm not saying don't do it, I'm saying you have to look at all options. 

On the positive, your losses are light. 

Traditionally most lenders will require 25% down, however there are a handful that can do 20% down without any experience. 

In one of them, we get a lot of traffic, and the other is very light.

On the contrary, uncertainty is the breeding ground for creating wealth.The core of the issue is whether you are willing to step out of the traditional investment framework and explore new business models and market opportunities.

People also love the back deck with the string lights and a nice seating area. 

Working with a good loan officer or mortgage broker can help you to get your file set up in a way that presents you in the best light to underwriters.

FHA is for sure not going to be an option for him, last option is purchasing from an investor with owner financing, or lease to own program where he will not need traditional financing.