Loan questions on SMF properties

[Ryan Campbell]

I'm trying to sink my teeth in on my first investment property but had an issue trying to secure a loan on a SMF. I'm trying to get pre approved before I shop. My intent is to turn one of the units into my own and rent the others out. I don't plan to live there forever, as I ultimately want all units to be rentals. My lender claimed I needed to have 25% down in order for them to issue me a conventional loan. He said the debt to income ratio for an FHA wouldn't work for the loan size I was looking for. Again I'm a newbie, but if I was coming to closing with 10%+ down why can't I get a conventional loan? I was approved for a conventional loan on a SF House from these guys last year which was only $50k less than what I was trying to get for the SMF. Plus my income has increased 16% since that original approval.

Any insight or should I be seeking a second opinion from a different lender to make this work? Really want to get this loan taken care of so I can do some hunting.

Thanks!