Lender not working with me

[Carlos Rodrigues]

Good evening BP my name is Carlos Rodrigues and I'm currently looking to purchase a multi family in Elizabeth NJ. I was just under contract with a two family for $260k and I was able to pass under-writters and got the commitment letter from the bank. Unfortunately the contract fell through due to a oil tank underground. I'm now back to square one and I'm still looking to find properties 24/7.  

I'm having a issue though. My lender only approved me for $250k on a two family property and I'm having a hard time finding properties for $250k in my area. I'd honestly feel like I would need to get pre approved for $300- $325k to find a good deal and in a better area of town. I tried to have my lender approve me for more money but he says I'm maxed out on what I can get a loan for. But when I first got my pre-approval for $250k it was for FHA 3.5% down. Now I'm willing to go up to $50k down and he still says I can't get more of a loan. He tells me to have someone co-sign, but i don't have anyone. I also asked him what if its 3 or 4 family wouldn't it count, and again I was told no. But if you realize I passed under writers for a $260k loan with 10% down FHA.

I'm not sure but something doesn't make sense. Can anyone guide me on this? I'd like to get a higher loan so I can purchase a multi family (2-4 units) already. I keep seeing deals and let them slip away because of <$50k. 

Thank you kindly