Seller is an investor who sells dozens of properties each year (some of them via fsbo) but ultimately give in and choose to let you list b/c they’re having trouble offloading this particular property OR want to spend their time on something else.

I think they are just an extremely conservative bank and that is their interpretation of Fannie's guidelines.I have already gotten approved from some other banks (credit unions), so I'm not worried, but I am curious if anyone else has run into a bank telling them they need at least a 20% down payment on 3-4 units, regardless of it being FHA or not.

Recommend you actually READ your management to see what it states about this (and everything else!)

I figured I should post how this turned out for anyone else who is in my situation.

We've found it has superior reporting features, integration features, and is overall more efficient to work within than other REI-specific software.The downside is QBO is not set up for REI so you'll need to do that or work with an expert to ensure it is set up for your business appropriately.Something else to keep in mind is your entity structure and how your entities file tax returns.

Something else?

I'd rather have someone else pay for it. 

Remember you are investing in relationships above all else.

Quote from @Sue Wiseman: Did either of you, or anyone else sign up with them? 

Is there any other options anybody else would do or would you just wait 6-12 months to refinance to start on my next venture?