FHA requiring 20% Down

[Brandon Causey]

Hey Folks,

Early on in my rental investing, but just met with an agent about purchasing a new single family primary home for a live-in flip. After running the numbers, I felt like it made more sense to get an FHA and absorb the additional 1.75% on the loan and 0.55% MIP since we're only looking to hold the property for 2yrs. My current single family home would become a rental property. Has anyone encountered the bank viewing this purchase as a second home and requiring a 20% deposit? If so, were you able to circumvent this? I've heard the countless stories of house hacking and utilizing the FHA with each new purchase to build a rental portfolio, but never heard anyone run into this. Is it because the multi-family properties have tenants and proof of income already established?

Appreciate all the help you can offer!