FHA financing on a second home? (owner-occupied)

[Aaron Wakeman]

Hi BP community, I've been listening to podcasts and reading voraciously. Thanks for providing such a great resource.

I'm struggling to find a clear answer on this question even though I think the answer should be pretty straightforward. I own a townhome with conventional financing. (I put 20% down on a 30-year fixed loan four years ago, and the property has appreciated in value). My family has outgrown it and we are looking to purchase a new place that we would move into. We would prefer to keep the townhome as a rental (our HOA does allow rentals).

Can I qualify for a low-money-down FHA loan on my new (second) home?

Follow-up question then, if I do qualify: is this option the preferable one? I would pay PMI. The other option is to put a full 20% down but maybe I would prefer to keep the cash flexible to leverage elsewhere.

Thanks in advance for sharing your wisdom. :)