FHA 3.5% down owner occupy not available anymore??

[Peter Parisey]

I spoke with my lender today to get pre approval for financing on a duplex that my father and I want to go in on together. Dad would be the financing and I would owner occupy so he would only have to put 3.5% down. After providing all requested documents to our lender they called back a few hours later and stated that FHA no longer allows 3.5% down payments on multi family properties purchased with a co-signer. They said the minimum down payment for FHA is 25% and for conventional it is 30%.

Has anyone else heard of this? Am I missing something here? What about the house hacking method that is often mentioned by Brandon Turner and many others here on BP?