Reasonable lender request?

[Mike Coleman]

I am already working with a mortgage broker and have run into this issue:

I own a SFR outright, but the last tenants did a number on it. I wanted to roll repairs into a note and borrow against the property. Appraisal came back at $120k, I'm only asking for ~$55k (all costs rolled in). That's less than 50% LTV!!

2 questions -

I have my tax returns going back until 2003, except 2013... Mortgage broker said "no problem" now the underwriter says "no way"!! I have the transcript, and I have every scrap of supporting documentation, am I going to have to: cough up $50 and wait for 75 days for the IRS to give me a copy, or re-create the return on my trusty Turbo-Tax, or find a begin looking for another broker, on my own, not on this site?

This underwriter also wants an explanation as to why we changed our mind from selling (deal fell through - buyer could not close) to renting (hot market, >$1000 / month income).  Is this a usual or normal request from an underwriter? I think this underwriter needs a new line of work!!

Point me to a mortgage TYPE that can close quickly as I am tiring of dealing with lenders that don't lend.

PS - I am NOT looking for leads for lenders.  I want to ask the more experienced folks if this is as dumb as it seems or if borrowing money has really come to this.

Note to Moderator: If this question still violates forum policy, then I apologize for taking up your time.

Thanks,

Mike