I suppose an alternative would be having someone install a vent.

The only exception that will be permitted for second home and investment properties loans is for high LTV refinance loans that are manually underwritten in accordance with the Alternative Qualification Path and delivered with Special Feature Code 840.

I don't know if I will be able to close unless I change my representative.As much as I am not feeling good about doing it, I cannot see the alternative. 

Alternatively, we could buy another more expensive house with the lower down payment that a live in home requires and buy this one as an investment so that the 20% down goes to the cheaper house. 

Checked the contract which states “in the event the seller refuses to cooperate in filing the grant application, title company shall be authorized to use the escrow monies to institute legal action against seller to compel his cooperation or in the alternative file the grant application without seller with any resultant increase in grant cost to be charged to the seller”

Alternatively, please let me know if you know someone I can reach out to who may know more about this topic.

Any thoughts about alternative ways to arrange the deal, or make better use of the full downpayment?

I am considering alternatives now that I have researched it.And yes, I used it without researching it too much.

Alternatively, if you are appreciating at $2,000/yr + $1,200/yr in cash flow, and you get that same special assessment of $5,000.  

You can't speed up the eviction process.What you could do is contact the property manager IN WRITING and demand they find you an alternative place to live or allow you to break your lease so you can rent somewhere else.