Expect higher rates on conventional financing 2nd home loans very soon. 

What do they look for with conventional owner-occupied mortgages? 

Standard binder deposit on a conventional deal is 2%, I like to go much higher to 5 or if the buyer can 10%.

Typical conventional financing with a local bank that we have a relationship with.

Longer version: DSCR or conventional, and assuming we're not talking about HML or loan sharks charging 10%+ and 3+ points, there's always multiple criteria in place.

If you are using conventional conforming loans to purchase, you can only buy in your own name to get those loans.

Also be ware for conventional conforming loans, they are subject to Fannie Mae / Freddie Mac underwriting.

FHA or a 3% down conventional loan would be a good choice. 

I can't seem a large benefit of REI in a case where you have to put 20% down in an average market.Ex:20% on $500k move-in ready duplex where about $1k cash flow (ideal scenario)Assumptions - 6% housing appreciation, Stock 6% appreciation (conservative estimates)Profit- House appreciation 6%/year- Mortgage paydown and it's 6% appreciation/year- Cashflow invested back into mortgage paydown+/- tax deductionsExpense- interest payment, taxes, home insurance, maintenance ~ roughly 1k a/f deduction (conservative est, probably alot more)VSOpportunity Cost- Down payment 20% = 100k in mutual fund 6% return/yr- $1k/month expenses that could be contributed to mutual fundYes there are still alot of variables- housing and stock appreciation/return will vary depending on location/time/stock- did not exactly calculate out the tax deductions / expenses but made a conservative estimate in favor of REI- did not include time and fees dealing with REI transactions vs just working a few more hours at my jobWhat i'm seeing is that in a scenario where someone will not be building sweat equity or finding a crazy discounted deal on a property and going through a conventional 20% in an "average market", the argument doesn't seem as strong for REI vs mutual funds/stock - they seem to be pretty close if you take into account the variables mentioned above.

Should we just try to or have to use a conventional loan?