I also received a $1200 commission when I bought it.      

Eg they borrow at 4% and receive say 7% giving them a profit of 3% for no money down but a little time for the loan app plus the risk associated with repaying the loan if it goes belly up - though with 20% of my cash down the risk is low for them.  

You would have to pretty much get a property for free in order to qualify.I have submitted two properties to their underwriters, and both were rejected because of last minute requirements that changed the lending criteria.I paid $2,000 (one year's worth) in order to be able to receive funding.

Here is some of the property info ( I received a pro forma from the owner but will request P&L and rent rolls once under contract) as well as my calculations for Cap Rate and NOI.  

You would receive back your purchase price plus 20% interest paid by the owner to you.  

Any advice will be well received.

Comps show this is maybe $10-15K below the market around there (probably after the typical updates).

I received a lot of identical answers as the posters here, but found one really important insight: almost everyone I spoke with was not speaking from real experience.  

I'm trying to receive a fair rent but one authority tells me that their HUD limits are one value, the other tells me they are a different value, and the two are hundreds of dollars apart. 

What type of interest do you typically offer your lenders or do you negotiate on a case by case basis?