Low Money Down Home Loans

[Chase Beasley]

All -

I was recently listening to a podcast (and have not been able to find which podcast I was listening to) to where an individual used a specific type of loan that allowed him to take out a mortgage with only 3% down where he lived in the home and rented out a room or a portion of the house. The low down payment allowed for a loan that encompassed the purchase of the home but also construction improvements. 

I've been searching to determine what loan provides this and have not been successful. I thought it was a FHA 203k but am concerned if I can use this and purchase the lower quality home and rent out rooms in it while living there.

Does this sound familiar to anyone?

Thanks