If you are set on a multifamily I would recommend trying to find a duplex with with a non-conforming unit in basement or attic. 

You can do up to a fourplex with a regular conforming loan.Another thing to keep in mind the closer you get to a major city, you are are trading cash flow for long term appreciation.

@Jason C.This is your only remedy: "Obviously this company is on a different wavelength, so they won't get my business again"If your not satisfied with what this company has to offer, go find a different one that conforms to your wavelength.I always justify these scenarios as the cost of doing business.  

That way, we could get 10 conforming loans each.  

I was looking at this property that seemed like a good deal but I found it is a nonconforming property that’s listed as a duplex but actually has 3 units (a front, a rear and one detached garage that has been converted).It has been on market for over 100 days so I know there is probably something wrong with it, so my two questions are: #1 How much would it cost for repairs on non conforming units? 

As mentioned, it may be granted a legal, non-conforming status.  

There may just be a little-known zoning stipulation or nuance that actually places the property in conformance.

It needs to conform to your State laws. 

Let me explain a little and I hope someone has a good solution to help me.The property that was offered has the potential to be subdivided into 3 conforming lots, minor sub-divisions.

Let me explain a little and I hope someone has a good solution to help me.The property that was offered has the potential to be subdivided into 3 conforming lots, minor sub-divisions.