Not the case in Steamboat.

@Ana Marie B. not the case in NJ, that is why I used perens. 

The British Columbia Lower Mainland market is normalizing it seems...This is the case in Vancouver to Surrey as far as I can tell with the other Tri-cities likely to see the slow down soon.

Case in point, some renter next door told the downstairs tenant there was a suicide in her unit which was false as it occurred in the upstairs unit. 

It seems as if most lenders are putting LTV limits on 2 to 4 unit properties to avoid lending to the Fannie Mae limits as this wasn't the case in the past.

It may vary for you but this was the case in Feb 2012 when I purchased my last property.

Can I file a case in small claim court?

If you’ve met the lender on the forums, I’m sure they will be concerned with maintaining their reputation for doing what they say (doesn’t seem to be the case in this scenario) or at the very least taking care of their clients when they’ve made a mistake that is costing you $.If not, I think you take the hit.

A few towns that tried lost the case in PA state court. 

Case in point, for this type of property you will need reserves or at least access to cash if/when your renovation budget goes over.You should listen to BP Podcast Episode #234 with Ryan Murdock.