Remove name off deed to acquire owner occupancy loan?

[Darin Tripoli]

I have been living in the same house for the last 6 years. I am not on the mortgage but am on the deed. I am looking to purchase my own multi family and live in one unit. 
At first I was told I qualified for owner occupancy rates and  a low percentage down and that excited me as it freed up some capital.

After I told the loan officer I was on the deed to the house I am currently in they recommended that I remove myself or I wont get the better rate and percent as a down payment.

I am okay with any avenue at this point but I found it really odd. Is this normal?