Hello BP, have a question on getting creative for financing that I am hoping one/some of you could help provide guidance as my wife and I try to navigate a second property.

Our current situation, we have an owner occupied duplex. we purchased this property roughly a year ago and we put 5% down for a 5/1 ARM loan. Paying a PMI but we didn't get the FHA requirements. One side was newly remodeled and we have been living and remodeling the other side. I am not 100% where our current equity position would be, but I'm sure we still are not hitting that 20% ownership mark. (This place has been a learning experience more than anything).

However, we were looking at exploring a 3.5% down FHA loan and getting a nicer/newer place in the area - a place that has a bit more room as we are running out of space. We are currently debating another duplex if we can get an FHA or we'd be looking at the standard 20% on a single family.

I plan on contacting some smaller lenders in the area for financing, but does anyone have experience in this area? Can you get financed on an FHA loan if you don't own a full 20% on current property? Any other tips/suggestions? Thanks!