So I’m about to get anywhere from 125K-145K HELOC (small bank).

The only problem is the house is zoned as a single family and they have added 2 units behind the house without zoning to multi family so several banks are unwilling to finance.What options do I have here?

I am able to get a conventional loan once the down payment is covered by the banks.

I work at a large national bank here in Minnesota and have been working with my regular mortgage guy there. 

Is there a Bank or CU that can help me?

The loan officer from the bank said he needs to know when FedLoan will report the payment before being able to provide me an amount.

The tricks are going to be finding a local community bank that will allow you to do C/O Refinances with a 75-80% LTV and buying deals where you are all in for less than 75% of ARV.

Under that same description you will also find lenders that will approve you based on bank cash in flow, if you are self employed, rather than your net income on your tax returns. 

If your using financing the bank requires this.

You or your agent should let them know you are patient and are happy to sit tight to see what the banks valuation is and if the short sale works out for you.