I am not affiliate with these programs.

The Fannie and Freddie programs handle this issue slightly differently.

When you go to sell, Montvale requires a certificate of occupancy so this issue has to be resolved in advance of a sale.Although I am not a lender, I assume you will not be approved for an owner-occupied mortgage on 5-units if it is a legal 4-unit without some type of mortgage fraud whether in reported rents, units, or another legal document or representation (very very large issue from a legal perspective with multiple arrests in the last year for anyone playing fast and loose).As far as the DCA, I would recommend coordinating your work with the city with the DCA.

Education is very important, so I’m taking a self taught course to get my permit tech certificate.

.- Of course, there's nothing stopping a relative from getting a loan and then gifting those funds to you.Assuming this property is in the City of Detroit, have heard there are several programs to encourage people to buy primary residences in Detroit.

congrats on the Naca program I have sold a  handful of my OREO to Naca buyers.. its a great program takes some resolve to go through their initiation process. 

I use to rent to Section 8 in Philly but the program started to be too much of a headache. 

There are down payment programs for duplexes, i have not searched or tried to do a 3-4 unit property. 

Then progress to permits and then building.You could also just do it and hope the city doesn't notice, which they probably won't.Your challenge will be getting Certificates of Compliance on the units!

On the plus side now I will have a recorded Certificate of Occupancy with the city, as this property will be a long term hold for me most likely.