Another thing to think about is what alternatives do you have other than a conventional 20% down owner occupied loan or a 3.5% FHA loan.

As far as financing we have a lot of options, VA loan, we have cash for down payment if we go conventional.

we are currently under contract for a property under market value and can use some rehab. purchase price at 350k, needs about 25-30k of rehab. we have 2 ways to finance it. either take out a conventional loan with 20% down and pay for rehab, out of pocket is 100k (70k down + 30 k rehab), but this is money locked into the deal we can't access for much longer.

My budget is 150K-200K looking to purchase with a conventional loan. 

Conventional 30 year fixed loan with 5% downHow did you add value to the deal?

In this seller's market, if there are multiple offers, a 203k loan will not be as strong as a conventional loan.  2.

I already have a conventional loan with my primary residence (purchased less than a year ago) so I will have to go the 20% route to get financing.A family relative is willing to put the down payment from his funds if I am willing to get the loan and be responsible for it.

Everett,My advice would be refinance your VA loan into a conventional loan take out some cash if possible and turn around and use your VA loan again. 

Each are mortgaged 30 year conventional with 20-25% down. 

I have only evaluated using conventional loan numbers.