First time home buyer - FHA loan or 20% down?

[Tomer Royter]

Hello fellow BP'ers!

I am currently considering purchasing my first property. The property that I am looking to purchase will be in the 500k range and I currently DO have the 100k 20% down required.

Since I am a first time home buyer - should I be considering getting an FHA loan for this same apartment and only put 3.5% down and use the rest of my capital in another RE transaction?

In any of the two cases an additional question I have for you BP'ers is that because this is my first property, should I always live in it for a year for the loan to be considered "owner occupied", for the better interest rates / Down payment differences?

Note that I currently live with family, so if I end up living in the property that I purchase instead of renting it right away, it is especially for the purchase to be considered Owner Occupied.

I would love to get any and all of your incites!

Best regards,

Tomer