I Qualify for $700k SFH 5% down, but need 15% for $700 Duplex?

[Zach Stiegler]

My bank, Schools First FCU says I can do 3% down on a $650k SFH or 5% on a $750k SFH, but if they see that the home is actually a Duplex then they force the Down Payment to be 15% even if I can qualify for 3% Down with zero rental income! Seems like a broken system to me.

Are there banks that can give me a 3-5% conventional loan on a Duplex if they're the same price as a SFH? That seems crazy that I can put less money down on a property that will net me less money than one that could make my income higher or worst case scenario, just stay the same. I just don't see why they have to change the underwriting when I proved I can handle a $700k property without any additional income.

Am I misunderstanding anything? Are there banks that can qualify me for a property at a flat rate and down payment regardless of whether it's 1-4 units, as long as it's residential?