That is simply because they are higher risk for the lender since they are not insured by a government entity and the lender will demand to be compensated for that risk. 

Typically, the documents included are: Annual Financials, Articles of Incorporation, Budget, Bylaws, CC&Rs, Insurance Declaration Page, Regular Meeting Minutes, Resale Certificate/Demand, Reserve Report, Rules and Regulations.

House Hackers Who are you using for Primary Home owners insurance?

So for example if you buy a house, it will mention the payments you're going to make as well as tell you your obligations such as being required to have insurance etc.

I would strongly suggest that you close this loan through a title company, this way, you will find out if there are any other liens against the property and be able to obtain title insurance, to insure the transaction.

My credit is 750+Loan Amortization: 30 yearsGross Rent: $2,190 ($1095 *2)PMI: $65 estimatedMonthly Insurance: $65/mo estimatedProperty Tax: $229/moNo other fixed landlord-paid expenses (e.g., elec, water/sewer).

You did not include insurance.  5% is too low for Vacancy, Repairs, and CapEx.  

They offered up all the local (I am out of state) legal, accounting and insurance contacts.What questions should I be asking?

The servicing company will also collect for taxes and insurance and make the payments for you. 

You can get inexpensive insurance or you can get insurance for a vacant property.