House Hack Financing

[Kal A.]

Hi all, 

This is my second duplex I'm trying to close on in just over a year since the first purchase. I'm planning on living in this next property. First, the lender is telling me that to get traditional financing I would need 25% down, but I thought if I'm living in it, it would only be 20%. She also told me that I can't do FHA because I already own another property as an investment. She's offered me a 7 year ARM at ~4%, 10% down, no PMI. With a >825 credit score I thought this interest rate was high.

Should I be looking for a new lender?