Conventional Loan for Rental or Flip

[Lisa Chipp]

I am actively looking for ways to secure capital to purchase my first real estate investment. I have equity in my current home and am shopping out a HELOC to use for a down payment and other costs. I spoke to a loan officer who suggested I rent out the home I am in and get funding for a new primary residence. This would allow me to secure a loan with 5% down instead of 20% with and investment loan.

I am curious if anyone has gone this route. If so, what hurdles am I up against? Do I need to prove I have a renter for my current home first? I am inclined to make it look on paper like I am renting out my current home until I have the investment property secured. However, I don't want to set myself up for legal issues if I were to do this. 

Seeking advise.

Thanks!