We have 750+ credit scores, decent liquidity for a down payment (we can put 25-30% down), we have modest but stable income, but we have tremendous student loan debt from law school and medical school.

I eventually found a deal in an area close to a major medical center, the University, and a military base. 

Is it because of something like medical bills or school loans  that may have happened in the distant past or is it low because they have been late or don't pay utilities?

I live in the Medical Centre area and had the water touching the bottom of my door.

Hi Quinton,This may or may not be applicable to you, but if by "unemployed" you mean "on temporary disability, but my job is waiting for me when I get better, and we have an estimated return to work date," than this would be a scenario where ADA trumps ATR and you can still get a traditional mortgage.Fannie guideline on long-term/permanent disability, on social security disability, and on what may be applicable to you: "temporary leave income," which includes short term medical disabilities.For that last one:Just like women/men on maternity/paternity/pregnant leave, a gap between temporarily reduced income due to medical condition, and your normal income, can be made up for using asset depletion.

There is a medical office unit for sale in my area.

I have a Medical Savings Account through my employment (it covers me and my wife).

I'm in healthcare administration and I'm also adjunct faculty at a medical school. 

Yeah you can spend $3K and get a new car or fix it, but can you afford the medical bills of the people who get devastated in the crash?

I'm medically retired now.