An if they don't meet that or whatever other guidelines you put in place up front, then there should not be any issue denying applications, and maybe they don't even apply.Personally I would not make up conditions as you go.....have to treat everyone fairly.

I called hgim to speak about it verbally and when I did he became aggressive with me on the phone and denied any wrong doing.

And please don't do crappy things like go through their bank statements and deny because you don't like how they spend their money.

If you've ever had a claim denied by an insurance company (and you will if you do this long enough at scale), you appreciate every layer of protection you can get... and don't want to rely only on your insurance to help when your net worth is at stake. 

Open a new application with an actual lender that isn't going to charge 12k in origination fees. 4.5% origination on this deal is insane, the broker / lender are ripping you.If you take this to another lender as is (not great credit, no experience, light rehab amount) you would likely get denied again. 

I have also placed cash offers on bank owned properties and have been denied or countered dollars under market value. at this point why not buy off MLS, closing with title, less risk. any advice?

Also, due to KC mayor creating this ordinance, which to highlight and summarize includes:bans discrimination against tenants based solely on:"-Source of income from an occupation, including gig work or paying rent in cash-Use of public programs like Section 8 Housing Choice Vouchers, disability checks, or social security-Poor credit score-Prior evictions and alleged damages older than 12 months (less than 12 months can be a basis for denial)-Prior convictions or arrests (sexual and violent crimes are excepted, a landlord can still deny based on these convictions)-The ordinance also requires the city to proactively scan for rental ads using discriminatory language like “no Section 8” or “no past evictions”.

Couldn’t find reviews for them online, but he denied requiring any nda’s. 

I would highly recommend full background checks and ensure you understand the tenant/landlord laws in regards to approving and denying applications.  

They have above market RENT to pay you. - Name me, 3 VALID AND LEGAL reasons, why you can or would DENY someone on section 8?