Here's what you, and every other borrower, has to contend with: Fannie Mae and Freddie Mac regulations. It does not matter what lender ( with two possible exceptions ) you choose, nor what state from which you apply. The broken lender-regulators who got us into this mess are still in charge, and they are just issuing regulations in a haphazard manner. The regulations are the same, nation-wide.
The first possible exception is to find an honest mortgage broker ( now, they all are Federally regulated ) who has access to funds from non-bank sources such as insurance companies or overseas, but this is really rare, and, when it does happen, is more likely to be in the over-$800,000.00 loan category with high asset and income requirements. This is just the way the world works now.
The other way, ant it's being used by 60% of borrowers nationwide, for reasons that you have just encountered, is to go FHA. Nothing stops you ( in fact, under the latest guidelines, this gets you a lower cost loan ) from making a high down payment for a FHA loan. It's been my recent experience that Wells Fargo is a really knowledgable FHA lender, and, maybe, you want to go back to them and seek a FHA loan.