So unless you go under contract before the 28th you will need to do FHA or find an alternative FREDDIE MAC HOME POSSIBLE® BORROWER INCOME LIMITSOur Freddie Mac Home Possible® offering serves low- and moderate-income Borrowers looking for low down payment options with flexible sources of funds.Currently, for all Home Possible Mortgages, with the exception of those secured by Mortgaged Premises located in a low-income census tract, the Borrower's qualifying income converted to an annual basis must not exceed 100% of the area median income (AMI).

The alternative is to construct 14 units with 3 bed 3 bath at 1500 sq feet per house.  

I can take them off the list search list while I look for alternatives. 

Does anyone have an alternate route to get started? 

There are strategies that make more sense to people depending on where they are in their own journey (desire to invest time, cash available, expertise, alternative ways to spend their time or invest their cash).The British call this 'horse for courses'.

Or 85% on an FHA loan.The other alternative is a HELOC after you close the purchase.

Alternatively, we were thinking of purchasing a 4 unit building and using an FHA loan in that same area. 

Alternately, if you buy and develop raw land in an OZ, that threshold does not apply.  4. 

I think your sales technique needs to come across in line with your personality.

Alternatively you could refi, use the proceeds for a down-payment on a new house, and turn the old house into a rental.You may get value from consulting a tax professional to dive into the details and specifics, taking into consideration your facts, circumstances and goals.