Your broker may have forgotten, but when the appraiser reports back to the lender that it is a rooming house, the lender will walk away or only underwrite an LTV of 50-65%.Your best bet is either a private lender or finding a conventional lender which uses auto-approval software (TD is an example) and mortgage agent/broker who can steer you towards an application that qualifies for auto-approval (if at all possible).When we were first in the same situation, we approached a family member with a proposal to have their name on title and live in the house (rent and utilities free) in exchange for their serving as the Den Mother to keep the house in order.  

Here is the situation: I am trying to purchase a house with a conventional loan - 25% down, 30 yr fixed that I will put under my personal name.

I have plans to get a free and clear property under control in capitol hill with an 8 to 12 month purchase option (because they're not ready to move out and sell just yet) then put a rehab VA conventional loan to cover repairs and upgrades, then air B&Bit (other than the roof, the home has all original everything so I'm not quite sure how to estimate needed repairs) Now because of this rule I can't.

Ok so I want to give a little back ground about my before I get into the topic I've been a home repair man since 18 I'm 30 now an I've always work for property management company so i know how it runs an  Operates I've been on 24 maintenance on call for student housing, retirement home an standard rental property now I'm getting into my own rental property's last year I brought a property for 130k fha  an an got the value up to 180k I refinance that fha to an conventional loan so now I'm looking for a 2 or 4 plex with an fha already have offers in just waiting to hear back an I'm also thinking of using my a line of credit from the first property to put down on a owner financing single family am I moving in the right direction or should I change things up plz let me know what you all think I'm working out of Norfolk va 

Conventional financing How did you add value to the deal?

Based on my experience and knowledge with FHA loans, if I had to do it again I would've gone conventional.

But I've gotten conventional funding on properties for which the seller said "cash only offers" due to fear of issues getting a loan on the property.

And sometimes the property needs so much work that a conventional lender like a bank won't touch it leaving one to purse the hard money lender option.  

Conventional wisdom says keep the golden handcuffs on as LONG as possible. 

When I get to the 80% LTV mark, I plan to look at refinancing to a conventional loan and freeing up my limited VA loan limits to leverage the power of it in the future with house hacking or live in (long term) flipping.