There are minimal down payment options available to first time home buyers with grants and down payment assistance on primary residence transaction. 

If you have the option to do it for 200 bucks, I'd say that's a good deal. 

Do you have downpayment money ready to invest when you find the right option? 

There are options for you there, but obviously nothing is guaranteed.

What's the best option with low DP then the traditional 20%.. lastly of you have a awesome lender who is creative and can make it happen, please share contact Info. thanks 

Bankruptcy is not a viable option in our scenario and we don't want to stop the process.

One other option, if you haven't tried this already, is to see if you can contact their Customer Service to see if they will make an exception.Here's an alternative way of thinking (probably not helpful) - do you think the automation is worth more than $120/month?  

It would be helpful and I appreciate it a lot on how you would proceed if you were in my family and I's position and on how to proceed now. 

I recently changed dwelling policies to State Farm and they include “Roof Surf Loss Settlement - ACV” in the forms, options, and endorsements section.

Joe McCall's Wholesale Lease Options Course?