Is a FHA loan hands-down the best?

[Kerry M.]

My choices are: a commercial 5/20 loan of 87,500 from a good, local bank with much experience who is lending 70% (assuming an appraisal value of $125k.)

Or, I was told last week that if we took it out of the LLC by myself, my husband (owners of the LLC) and put it in the name of my son (who lives there) and us, it would qualify for a FHA loan.

Questions:
1) Does a full-income commercial appraisal come to the same loan value as a residential appraisal?

2) Are there other downsides besides the loss of liability protection of not having an LLC own the property?

3) What is the actual side-by-side comparison of the numbers between one loan type and the other?

Other notes:
My son lives in one unit; we turned it from a SHF into a 4-plex. A renter is in another paying $605/month. Two units are not yet rented. There is no loan or lien on the home now. Our credit is good. The monthly rent is $1,940 and the appraisal value is a great unknown. The banker believes it could be valued at up to 190k based on rent income, but there are few properties to compare it to in that area. It is for sure worth more than 100k, says an experienced realtor.

Thank you!