For investor loans with private institutions, they primarily lend to LLCs, so they would keep headache low.

What are your thoughts given the numbers and what route may be the best to go, as well as how that compares to other larger institutions and their loan options.In order they are:1)  3% down, prepaid mortgage insurance, single family.2)  3.5% down, FHA, 1-4 unit.3)  0% down , Utah housing NO PMI loan, single family.4)  5% down, prepaid mortgage insurance, 2 unit.I don't think I can come up the the 5% down but if it seems like the best viable option I may be able to squeeze it. 

What institution provided that kind of financing?

Research the laws (both Federal and state, depending on your lending institution) to find out if they make the leap that Fannie and Freddie made recently. 

You will be dealing with massive companies, institutional investors, and extremely wealthy families. 

Does any financial institution still allow them?

Pursue non-institutional lending to provide a bridge loan that covers the building and the estimated rehab costs. 

Institutional investments sell based on IRR, not cap rate.

Is there a lot of construction/construction workers in the areaAre you near educational institutions?

The requirements would be up to the institution financing your new loan.