5% down on an investment

[Spenser Harding]

Working in a bank, I have talked to many mortgage pros on financing options for investment properties. Since I used the conventional 5% down with pmi on my primary residence in 2012, I wondered if it was possible to get that financing on an investment property somehow. As a colleague of mine told me it would only be possible to get that type of financing again if it "clear" I was moving to the newly purchased property and I had a renter lined up for my current home. To me this is a bit of gray area - pertaining to business practices and moral/ethical standards. It is true that investment properties typically require 20% down, however when this option was shown to me by a pro, I don't know whether to follow the lead and label it "creative financing" or stick to the bank rules of the game and apply 20% down. Any BP's members ever heard of this or used this before and what are your thoughts to the ethics of this??? Still being new to investments, I still haven't purchased a property, I want to know if this violates some sort of investor code of conduct and how would a bank even find out??