Below are some workarounds for every day situations:
1) Borrower wants to cash out but has less then a 720 fico and over 6 financed properties: Consider FHA. They do not have a reserve requirements for REO and do not need a 720 fico like conventional does.
2) Borrower is paying out alimony and child support and crushing their debt ratios. Go Conventional or FHA. All 3 Agencies allow you to subtract the alimony portion ONLY from their monthly income. Which in many cases brings their back ratio in line.
3) Borrower has large deposits that cannot be sourced or if backed out will create a shortage of funds. If possible go Freddie Mac and obtain a 30 day VOD from their bank. Assuming their most recent 30 days is clean that may be the best option.
4) Borrower has thousands of dollars in unpaid charge offs and collection accounts. Go Fannie Mae. Fannie allows an unlimited amount of charge-offs and collections on a primary single family transaction ONLY.