FHA loan?????

[Schaiane Rodriguez]

My husband and I talked to our banker about buying a duplex, we would be living there and renting the top floor. We were looking at properties that were around $60,000 the broker said we should get an FHA loan and look at properties that are closer to 90,000 and that don't need work, no paint chipping, etc...... Is the banker right? Or should we go to another bank for a second opinion? We like the fha loan because of the 3% down payment, but I don't mind looking at something cheaper that needs some cosmetic work, but the banker is saying that we won't get approved if the property needs work...I'm confused