FHA on multi-family with currently leased units

[Matthew R.]

I have a question regarding financing for an 'eventually' owner-occupied duplex...

The duplex we're looking to purchase has both units leased until June 2017; one has been on a month to month arrangement, but the seller made the price/sale contingent on providing a lease through the school year.  That wasn't a particular concern for us, initially, as we like where we have been renting and can be patient.  However, our planned lender is now requiring a 15% down payment, versus the initial 10% that we'd planned on.  (We're talking >$200,000 purchase, so 5% matters as far as our cash reserves and risk aversion go.)

The mortgage broker we're working with has strongly recommended we take advantage of an FHA loan, as the intention all along was to owner-occupy; however, our earliest move in date would eight months out.

Any thoughts on this?  I'm not fully versed on the FHA legalities, as we had intended to do a conventional loan.