Then you may shop in that price range.Tip: check with your local credit union: they will consistently have better rates and often the underwriting of loans is done locally.Mike

Could you send them a credit/debit card you can reload from America?

If your rate is low on the 5 unit, I might consider the possibility of a line of credit for my equity instead of an entire new mortgage.  

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

I think they are just an extremely conservative bank and that is their interpretation of Fannie's guidelines.I have already gotten approved from some other banks (credit unions), so I'm not worried, but I am curious if anyone else has run into a bank telling them they need at least a 20% down payment on 3-4 units, regardless of it being FHA or not.

Quote from @John Underwood: Well how many reviews were there and were they all 5 star. 10 Star now on Vrbo.They have 42 reviews and the score isn't bad at all for this specific potential client.

Others tap into personal savings or use business lines of credit for more flexibility.

If you co-sign, the loan will consider both your incomes but also both credit scores, so her credit could impact the terms or buying power.

They do free sign up with 100 free credits so you can try them out.

Your credit score needs to stay relatively the same from application to closing.