Looking to buy a duplex with a partner and live in half

[Amanda Leppert]

Hi! I am looking to purchase a duplex with a friend of mine later this year. The plan is to purchase it together and I will live in half of it for at least a year while renting out the other side. My questions are in regards to bank financing and forming a business. We would like to use the fact that I'll be living there to get in with a lower down payment. I would be considered a first time home buyer but he recently purchased a home less than a year ago. Does him being on the loan knock us out of all first time home buyer programs? Are those programs even available for a duplex? Also we would like to have a business set up to protect us. We discussed purchasing the property with both our names on the loan and then selling it to the business after the first year is up after I move to another property.  I have contacted a few and they don't really seem to know the answers in regards to purchasing a duplex and living in half of it. They automatically say we would need 20% down. Would a local bank be more willing to work with me? Please point me in the right direction!! Thanks!!