It's an overlay...the guidelines are minimum standards for a conventional loan, it doesn't mean that a lender has to give you those loan terms.

@Jack LittleThere are standard templates from Fannie Mae but I would have an attorney draft these documentsThey can be held (the lender) through a deferred retirement account but make sure you are using a third party servicer to collect payments

It will come with a slight rate increase but overall worth it as the rate will typically be much better than the F&F.

I know it is not an optimal rental with how big it is but I am confident that the equity will be increasing quickly along with rent rates given how much money Lennar is pouring into the area and we have low rates. 

I invest heavily in Detroit and evictions are 3-4 months on average (was faster pre-COVID).Property taxes are high on a percentage basis but increases are capped at the rate of inflation with a max annual increase of 5%. 

Just to be clear conventional loan guidelines are just the standards set by FNMA to buy loans that have been originated, they don't obligate anyone to actually extend those loan terms to borrowers.

Using leverage is still better than paying 100% cash, you get to use OPM so your ROI will increase, it's a win for you. 

That applies to the 'standard' leases in your state as well -- assuming your lease is not a 'standard' lease. 

@Jason Allen a wise question, but there's no specific industry standards in the SFR area, like there is for MFR.Read below for what we use:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.When investing in areas they don’t really know, investors should research the different property Class submarkets.

Also, 30 years is pretty standard for a mortgage, so no worries there.