If you are using a conventional loan to purchase, the bank will require a title policy.If you are purchasing on a lease/option or land contract, you will want to record a memorandum of lease, lease/purchase, or if it's a land contract, you will want to record some sort of memorandum referencing the land contract that will cloud the title in the future (to your benefit).

Then after the property is acquired and rented out 100% to get a more conventional loan.

(You're definitely not talking conventional in this scenario.)

Would conventional lenders give me more flack than one for an FHA Loan?

I have been told I won't qualify for conventional or FHA loans based on my debt/income ratio.

I'd rather do conventional with 25% down (have a pre-approval in hand).

Also, Is it only for FHA loans or conventional financing as well?

I get better prices due to lack of demand and banks' desire to get inventory off their books for year end.

She mentioned that there is a lack of SFH inventory right now because the banks are holding back on foreclosures.

Little inventory in the pipeline spells a few more good years vis a vis increases.