The law also stipulates that upon receipt of submittal to plan check, they have only 60 days to approve the plans or the plans are considered "approved".

@ Rita Naga - The lowest rates on long-term debt for multifamily is typically agency (Fannie and Freddie) loans, but come with a few stipulations, in particular high occupancy rate requirement (90%+), net worth equal to loan amount, and at least 2+ years experience.

They were then served a 3 day notice as they met the stipulations for such.

Fix your lease to ensure it stipulates stiff penalties or termination for violations. 

They are currently under contract for a higher price with no stipulation to evict a tenant.

The only stipulation is that you must give a minimum of 30 days notice.

@Erin Speer I realize it is too late for this advice, but you should have scheduled closing for October 1, with stipulation the property is delivered vacant.

I live in Saint Paul, MN and the city stipulates how many people can live in a rental based on the bedrooms.

Although I typically prefer to work with mortgage brokers as opposed to banks, I would suggest reaching out to some local banks, possibly credit unions, and see if any of them have different loan stipulations that would allow you to purchase the owner-occupied duplex without a cosigner. 

But I believe they stipulate that you must live in the home