Homestyle Loan Restrictions on Multis

[Michael Synclare]

I’ve been learning about Homestyle loans recently and I wonder why non-owner-occupied multifamily properties are not eligible. What difference does it make to the lender if I live there full-time or not?

Could I just use my own money to do the renovation conversion to a two or three unit property a few years after the original renovation is complete? What other ways can I accomplish getting from a SFH to a Multi using a reno-loan like this? Thanks.