The "non conforming" lending options are actually called NonQM (non qualified mortgages).

I'd underwrite the deal as any other - make sure you are conformable with the quality & tenant base. 

You have to find the areas that are either zoned for Hotel and Resort or have NUCs (non-conforming use) certificates. 

All existing STRs with 2 days rented in the last year will be granted legal non-conforming status.  

1) 20% down will allow you to do a conventional investment loan, but you will have to either:- Qualify with the new payment + your current payment- Lease the property out, allowing the lender to use 75% of the monthly rent to offset the mortgage (confirm with a lender).2) You could also do a DSR 20% down loan, but the interest rate will be much higher than conforming rates.3) If less than 20% down, you could:- Do a 10% 2nd home loan as long as the new property is at least 50 miles from your current home or near a qualifying vacation spot (confirm with a lender).- Do a 5% down conventional mortgage if you plan to rent out current home and live in the new one for at least 12 months.

That is important when considering a conventional conforming loan.

For the past 4 years I've been focused full-time on the niche of pre-existing non-conforming land parcels and/or land that is considered undevelopable.Basically, I focus on rehabbing lots instead of rehabbing houses and I have virtually no competition up here in the New England Area.Is anyone else here doing this?  

remember, these are NOT conforming loans, so all the consumer protections one might be used to having aren't there.

This limited inventory will likely continue to drive prices upward.Sales - Median $/SF by MonthThe $/SF decreased slightly MoM, conforming to the seasonal trend.

When you buy a primary residence you are typically using a conventional conforming (fannie/freddie) type loan.