Issues with PMI

[Stuart Cairns]

Hi Guys
I recently looked at a property with great potential. I have some personal issues which this would have addressed (would have been owner occupied). It would be my first investment property and this was a perfect investment for me. I have been working with a savings and loan and was all set to make an offer on the property when I was informed that a bankruptcy from 2.5 years ago would prevent me getting PMI insurance.
I was putting 5% down and doing an inhouse loan. This bank doesn't do FHA only Freddie Mac which I was told I wouldn't qualify.
Now they are saying I would qualify through the bank but the PMI insurance company requires 5 years post bankruptcy. This bankruptcy was due to a business failure from 2007 but an attorney was hounding me over payments and was attempting to garnish my wages, so I finally filed. Now I am wish I had just filed immediately.
I had declared everything upfront to the bank I have a decent credit score, above 660 which was the cut off for this loan but I have never heard of PMI Ins having stricter criteria.
Anyone know of any solutions or if there are PMI comanies who I could go through?