I think my lender's logic is that he can drop the rate when he has access to more options other than limited in-house products. 

From my mom who is a broker to binge-watching a ton of home improvement shows since I was a kid.I went to a Parade of Homes once (if you haven’t been to one, definitely go!) 

The more unique your list and message, the more likely you are to improve your response rate. 

I don't pay myself from business but reinvest profits in purposeful expenses or cap improvements for the portfolio.

I can make modifications &/or improvements to it.

I wonder if there is a service one could subscribe to or access which shows:- Total value of residential mortgage debt in the US- How that debt is grouped by fixed vs ARM rates- How thar debt cuts in terms of prime vs subprime- How are the monthly payments doing (on time vs late)- Proportion of foreclosures (growing or declining) - How much of the debt is primary residence vs investment - Average loan to value estimate My point is simple.

I would snap a picture of the head and head to your favorite home improvement store.

I improved my credit and built a relationship with that CU over the years.

If your goal is a long term buy and hold, then no, you don't make your money going in unless you can buy a distressed property and force equity through improvements.

His end goal is to refinance with a conventional loan but he wants to wait another 6 months after his credit score improves from his current 650 credit score to receive a better interest rate.