Are there any better alternatives?

@Ondrej Brown I would agree with @Jaysen Medhurst RE- exploring alternatives to FHA. 

Countless other national chains are doing the same thing. 

Interestingly, I just sat in a forum meeting (prior to Covid -19) where Belmont (local housing authority) just gave an entire seminar on using them to facilitate cash for keys deals as an alternative to eviction.  

Anyone else being required by law to offer alternatives to the age-old security deposit dilemma?

Because the alternative is that he stays and he doesn't pay his rent and you can't get him out or re-rent the place.  

I’ve read many books, podcasts and have build my own models analyzing countless potential deals and I’m very lucky to have successful mentors who have helped along the way.

I'd look for other money as an alternative to this. 

I'm open to any advice, tips, or even suggestions for other alternatives for my situation.

Looking at it on an apples to apples basis with alternative options, you'll want to consider points, fees (loan app, appraisals, draws), skin-in-the-game requirements, whether it's a dutch loan or not, if there are extension options, when interest payments are made, the risks involved in the deal...so, for example, would you rather pay 20% interest on 6 months at the end of a deal with no fees....or make monthly payments, put say 20% down, have some fees, and pay 10% to 12%?