House hacking dilemma

[Jack Middleton]

I looked at a duplex and got approved for the loan through a lender. All seemed good until I asked why they want 25% down. After he explained that it was a rental, I commented that I wanted to live in one unit and was looking for a lot less down than 25. He informed me that it wouldn't fly because I have two other rental properties. Is he correct? I thought the idea behind house hacking is to live in one unit to get low down payments.

[Linda S.]

If it's your primary residence, that should qualify for owned occupied, and you should only have to put 5% down.     He probably thinks you're being subtle and obviously lying to try and get a better rate.   I'd explain that you plan to move into the duplex, as your primary residence and you're owner occupying it.