She's a Fannie Mae and Freddie Mac direct lender.

Once you were done with all rehab, you could then refinance the loan to a Fannie Mae loan or and FHA, depending on your circumstances? 

@Toni Annis I worked for a broker and managed REOs (HUD, Freddie Mac, Fannie Mae, BOA, WF, and some smaller banks) and we were able to give out information regarding when we would list.

If you want to go conventional, from the sound of the condition you would have to use the Fannie Mae Homestyle loan.

You can also ask about the Fannie Mae Homestyle Loan which is similar to the 203k, but allows for the property to be investment property, a 2nd home, or a primary residence.  

That would be a straightforward fannie mae loan.  

Traditional lenders are claiming that Fannie Mae demands a bump of 1/8% to 1/4% for EACH additional unit beyond 1. 

Great, we just incurred two additional sets of closing costs and we're back exactly at square one.And that's before even considering how Fannie Mae or Freddie Mac would view this.

Fannie Mae removed the continuity of obligation requirement for rate/term refinances a little over a month ago, and guess where the lowest closing costs are to be found?

By asking for credit reports, tax returns, and pay-stubs, some HML's, can't tell themselves apart from conventional lenders and in my view, and I suspect yours, delude themselves.The large banks, Fannie Mae, Freddie Mac, and the other GSE's, have huge databases of loans as well as the statistics to show how these correlate with defaults.