Low down payment on MF?

[Tommy Barone]

Looking for options on mixed use property. It's a single family with attached business, which can be converted easily to a MF by turning it into a studio. It's zoned as mixed. Bank says no to 5% conventional and would even be difficult to go FHA. Not a big fan of $7K MIP up front, and lifetime PMI, but I'd do it for the right situation. I feel like I'd rather save FHA for a quad or something, where the 3.5% down would be worth it.

Any other options?  Bank said no to in-house portfolio for that little down as well.  I'm guessing all banks will face same underwriting issues for that type of property?  

This is in RI.