New FHA Guidelines let you buy owner occupied for as little as 1% down?

[Samson Kay]

I'm a big proponent of putting as little down as possible on cash flowing properties. Its like living at your parents house for free. You get things like the mortgage payment, electric bill, insurance and taxes, paid by someone else, and you use your day job to pay for things like those new nikes you been eying. If you could buy a property for 100% financing and still cash flow enough to at least cover debt service taxes and insurance for a property you live in? why wouldn't you do it? Of course you would. 

Anywho, I'm still working out the details with my mortgage broker for a personal two flat, but he informed me that FHA has revised their guidlines dropping downpayment requirements to below 3.5%. Imagine paying 1%. The cash on cash return could be huge! On top of that PMI % has been reduced so that its not such a huge chunk of your monthly payment.

Can anyone weigh in on this? Is this true? And what is the mortgage industry requiring from the borrowers?