Avoid PMI and then go to a local credit union and get a heloc after closing to gift the money back.Have this as a tool in your tool belt but pursue use of the 3.5% FHA, knowing that you will be at a competitive disadvantage if you are competing with non FHA buyers, then you can call in the favor from your gift person.Just know that if someone gifts you down payment money, your bank will require them to sign a letter stating that it is in fact a gift that doesn’t need to be paid back.

I don't take a credit score as a reliable metric in my market.

am working with them now and had the first policy (with Spinnaker) cancelled for nonpayment/late payment so we rewrote another policy (with Millenial) and having the same payment problem again but at least they are communicating that cancellation is coming. they want me to pay by credit card over the phone so the payment wont be late and cancelled again. but when i go to mycoverageinfo.com to check on status it shows its been paid.

You would want to look for an owner that has a loan through a bank or credit union or one that has no mortgage. 

Current rate is 5.75 and credit scores are around 750.

I looked around and found lenders that will do a day out of foreclosure up to 50%LTV down to a 500 credit score but the loan amount minimum must be 300k.

Yes, that’s another credit union only asking for 10% down with no pmi.

And your credit will be ruined for like 7 years.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

Of course credit card is going to be like 3.5% but it does kind of such because it's already hard to get tenants to pay it lol.