House Hacking without an FHA?

[Ashton Patterson]

The obvious winner when it comes to financing a house hack seems to be an FHA loan. However, my friend and I are having a hard time qualifying for enough to get a duplex in our area with an FHA because my tip income doesn't qualify. After talking with a local bank, it sounds like we would have no problem getting a loan, but the terms would be less attractive with a higher down payment and a slightly higher adjustable rate.

I was wondering if anyone on here has financed any house hack scenarios with local banks, or even used other forms of creative financing to fund their first property? 

[Michael Noto]

@Ashton Patterson I am not familiar with Arkansas, but here in CT I have had clients purchase with a low down payment conventional owner occupied loan. The guidelines seem to be less rigid and you still get the benefits of the low rate and low down payment. Added benefit is typically conventional offers are typically looked at in a more positive light than FHA offers by sellers.