To make the question more clear: Can I buy a property with 5+ units and only lease out 3 of them in order to obtain an owner-occupied FHA loan?
For example, say I buy a 12 unit property. For simplicity, say they are all 2/1 units. So I keep 3 2/1 units and then I say the rest of it is a giant unit which I am occupying with 18 bedrooms and 9 bathrooms.
I think it would only work for a 1-4 unit (residential loan).
No. The Property is more than 5 units.