So frustrated I just need to vent...

[Eric Denson]

It is now day 90 of me trying to buy my first investment property. I'm so FRUSTRATED with my mortgage company I just needed to vent and hopefully someone can tell me to just hang in there and it will be alright.
The background: I'm buying a 4-plex in rural Alabama. It was listed at 140K two years ago and finally worked its way down to 85K. I got it for 67K. I'm putting 25% down and financing $50,250. Simple enough right? The place is fully rented, needs little repairs, and the owner is out of state and really needed to sell. The perfect combination I know.
The first problem was getting an appraisal done. There are no comps within 45 miles of this property. Regardless, it finally appraised for $120,000. I've been extremely quick to get any paperwork my mortgage company needs including just recently a stamped letter from the IRS that says no one else is using my social, an registered copy of my divorce papers from 2005, TWO contract extensions because the underwriters are so dang slow. The title work has been done weeks ago and I thought all I was waiting on was a closing date. BUT NO, now they tell me the appraisal is no good because the comps are too far away (45 miles) and now they tell me they can't loan me the money because the appraisal says "Unit 101 is in poor condition, however it is a livable condition". There are hoarders in 101.
If this is an issue shouldn't this have come up a LONG time ago?
Here's what I think is going on. My job is with the US Army. I'm a civilian of 22 years and I'm betting they are stalling or trying to find a way not to loan me money because of pending furloughs.
Any thoughts? What should I do now?
Eric