3 Fam Owner Oc - Underwriter not feeling it?

[Jim Sestito]

Hi BP - and Happy Friday

I have lived in my two family for over two years and ready to make a move.  

Looking to house hack again but this time into a 3 or 4 family.

The first lender I am getting pre approved from ran the 'situation' (I do not see it as much of a situation) by his under writer and got the following response,

*****I don’t think this is going to work. If he wants to come off the deed of that 2 unit, or refinance that 2 unit into an investment property, we could do the 3 unit as an owner occupant******

It seems they would be suspicious why someone wants to live in a three family when they own a two and I am just looking to get the benefits of an owner occupied loan and not really live in the property.  I am 100% planning to move into this next property and have no intentions of committing mortgage fraud.

Am I out of loans after my first property!? I ask this with some sarcasm but would love to get the opinion of other investors who may be in similar situation.  

I am located in south shore Massachusetts smack dab between Boston and Providence.

Thanks in advance for the help and conversation.  

Jim