In addition to that there are much less subprime loans such as no docs, stated, pay options, ARM's, etc.

If I were you, I would go to a local bank and get an Adjustable Rate Mortgage (ARM).

Most banks have buyers sign arms lengths affidavits and if their audit caught it they'd blacklist you from purchasing the home. 

Terms offered were 20% down (10/10) on a 5 year ARM at 4.75% with a 20 year term.

The biggest reason is opinion.We know after having between 2,000 and 3,000 transactions close with financing, that in today's environment, some appraisers are not going to appraise our properties as arms-length transactions.  

As Greg points out, providing explicit reasons, whether true or false for applicant rejection, just provides potential fodder for an applicant complaint.

I'm more considering opening up the opportunity to some friends and then I in turn can use some of my equity toward another acquisition, or to pay down other debt on my other properties or my portion of that ARM.  

Normally its ARM qualification rates: 3/1, 5/1,  7/1, 10/1 arm. 

I barely managed to get som 5/1 ARM on 60% LTV on a single family.

We decided to do 3 separate loans for best terms but it was a lot of work. 3.76% on 3/1 hybrid arm no balloon though.