Fannie/Freddie (Conventional) loans aren't just about rate and transfer taxes. 

If you had good credit (670-730 range), you have 20% to make a down payment, and sufficient income to qualify for the home you want to purchase - Would you choose the FIRST-TIME HOME BUYER or CONVENTIONAL purchase option...which would you pick and WHY?

Here is some key information:Property recently hit the market and has 2 cash offers alreadyThe seller provided a pre-inspection report, which I shared with 2 different lenders, both think it may fail conventional financing due to potential structural and electrical issues (realtor thinks it could pass conventional)Seller has 100% equity but is behind on other payments (not sure of the urgency money is needed)This is my first attempt at an “investment” property so I’m new to thisI see 3 optionsMove forward with an offer using conventional loan pre-qualification-Not as attractive of an offer to the seller-Possibility that appraiser calls out structural/electrical issues that need to be fixed before closing, effectively causing financing to fail- Best terms and fewest loan fees for meUse a rehab style loan such as ChoiceRenovation-Even less attractive than a conventional offer to seller, but less risk of failed financing if appraiser calls out issues-Slightly worse fees and interest rates compared to conventional-Lenders tell me possibly up to 60-90 days closing in some cases, with red-tape for contractor requirements and draw schedules (sounds like the most hoops to jump through during rehab)Use a hard money lender-Most attractive loan option I can give to seller so I can compete-Much higher fees and interest rate for me-need to refinance into a conventional at the end of rehab (not familiar with seasoning periods but I think this is a factor as well)Which option would you do?

Quote from @Paola Astrid: Should I refi to dscr or conventional to remove pmi?

Originally, I felt limited by conventional lending DTI.

My conventional loans don't have a demand clause.

I'm curious why you want a HELOC instead of a conventional loan in the first position.

Sadly, FHA has a 2 year work history requirement, as does Conventional and USDA financing. 

Before seasoning period ends, I want to sell to my younger brother who purchases with conventional mortgage.Is there anything wrong with this idea?  

Quote from @Paige Seeley: @Jay Hurst even with 20% down, what non conventional options are you talking about?