State Farm will not do an umbrella policy because My father and I will both be on the loan/title (thinking of alternative ways to do this, advice would be great.) and they think it is too much exposure. 

For anything nicer, custom built or Lowe's are good choices.

The other thing I am wondering about is alternative financing.  

You form relationships with experienced people by learning your niche, your market, and mastering the vocabulary related to your investments of choice.

Your parents can afford to pay the tax gain now, let them do that and watch you develop and make something of it while their still alive, tell them you want them to see what can be done, and if you need more $$$ ask them down the road to do more.Trusts are good way to avoid probate, and make other choices but they can be dragged out and if your not the one calling the shots as the trustee the one that manages the trust after they are gone then LIMBO is the game.Example at gift to beneficiary a charity was set at % amount.. what has to happen is a complete disclosure of assets, done by accountant, submitted by trust attorney to the beneficiary attorney so they can accept or ask for more detail on the accounting summary.. long and short of it.. more costs to the trust..

Others will have a better handle on alternative neighborhoods. 

With Memphis Invest, I am relying on their expertise to reduce that risk, and accept the lower RTV based on what I've heard from other folks' experience with them.Thanks for that alternate method of pulling up name... for some reason, I can't pull in your name with a direct @ reference.

Any bank or alternatives?

This choice is hard work but can be highly recommended.  

behind on their payments and a short-sale is usually the remedy-of-choice.