5/3 wants cash and prom note at closing, as does the PMI company? Anyone ever had this situation?
Could be something they seen in the seller's credit profile; you must talk to them to be sure they told you or disclosed all their financials because the credit report may have turned up something different. If not you must have them write a more elaborate hardship letter and tell them to spill out their guts in it ( All Truth) and send it back to the lender and Pmi company and see if they will have a change of heart. Hopefully they did not go out and purchase a new car or co-sign for a child to buy one or some other type of credit they opened. You must dig out the dirt on this one.