Actually, AJ, this is a good question.
$3000 in reserves seems low to me. Why did they decide to reduce from a cushy 20% to 8.5?
Might I suggest you call a few local lenders, and see what their requirements would be ...also check on whether your building is FHA approved (www.fha.gov) and see what FHA requirements would be.
I will be interested to see what other suggestions and ideas are proposed here!