House Hacking Change Lending Terms?

[David Eiges]

I'm looking to purchase a 2-4 unit multifamily. My understanding is that for a SFR, 20% down payment and for MFR its 25% down payment.

I was having an informal conversation with a lender yesterday and he mentioned that house-hacking can provide the benefit of more favorable lending terms, but I didn't get the full details...I'm seeking insight as to whether purchasing a MFR as a personal residence (house hacking) can allow a smaller down payment (20%) or more favorable interest rates than if purchasing a MFR and renting out all units.