Multiple FHA loans

[George Gipson III]

okay so I am planning to purchase a investment property with a FHA loan the property is being auctioned by the court house it sold for 260,000 in 2007 right now listed at 175,000 for sale. My question is if I purchase with the FHA loan with 3.5% down and I would put more to lower the payments when I decide to sell or rent it out will I be able to purchase another home with FHA loan if I still own the first property while renting it out. I am assuming you can only have one FHA loan at a time and it must be your primary residence. My bank told me if its a investment property I must put 20% down and can't use the FHA loan. What should I do?