thank you for your time..That response is very fair.

I don't charge security deposit or move in fee nor do I care about credit. 

They were getting a fair amount of leads but most of them honestly were either duds or low end properties. 

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.

Unless a loan is assumable few if any lenders are going to agree to this because they have no way of knowing if you are credit worthy, as the seller was the one who was vetted. 

It seems like it should be a fairly straightforward answer. 

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

The more lead credits you purchase at once the more you save.

Knoxville has some good ones like First Tennessee, Pinnacle Financial Partners, Y-12 Federal Credit Union.

Check with local credit unions.