House Hacking Conventional Loan still 20%?

[Terrell Owens]

I'm currently trying to become a first time home buyer and I'm extremely interested in "House Hacking." The concept that I could have a multi-family unit household and live in one unit is a desirable outcome.

However, I was speaking to one mortgage lender and I was told that because I'll be renting out one unit, the conventional loan would be 20% and I was told it would be the same thing if it was an FHA loan.

Is it just that mortgage lender or am I not understanding how this works?

Should I speak with a bank instead? Do I have to live in this property for a year without renting it out and then I could? I am confused

[Tim Johnson]

If you are house-hacking one side of a duplex, it is "owner-occupied" and you should be able to get a conventional loan at 5-10% down, and FHA at 3.5% down. I would check with a different lender.