House Hacking- Family Lender

[Luis Torres]

Hello,

I am looking to house hack in Central Connecticut. I have a family member that is willing to do lend me at 3% (huge blessing for sure) if it is my primary residence. Family member's one condition is that I put down between 10-20% depending on the price point. My questions are whether

-Should I try to get a FHA mortgage instead and house hack knowing that the rental income will go toward the housing expenses. This would allow me to perhaps move out quicker and save the cash and family lender for another property in a year or two.

The thing is a lot of properties in Connecticut seem overpriced and would be hard to cashflow with the regular mortgage rates.