Even though I am an investor, there is a lot of investor hate and many home owners would consider selling to an owner occupant rather then an investor, even with FHA - I have done it and will continue to.  

As an owner-occupant of a building with 4 or fewer units, you will be eligible for pretty much all of the standard residential mortgage programs.  

@Courtland Stansberry, you might be pleasantly surprised to find out that when the occupants find out that the property is not owner any longer by the bank they will leave on their own. 

ValuePenguin is a good source for the relative cost of insurance by state.Operational Costs - Costs like property taxes, insurance cost, state income taxes, regulatory costs (ex: time and cost to evict, rent caps, rent control, certificates of occupancy), inspections, rent control, etc., have a tremendous impact on your return.

@Michael Baum, Yes, there are 12 single occupancy rooms.

Are there any other well-managed lenders out there with a similar product but no minimal threshold for owner-occupancy (or one lower than 50%)?  

What is your average number-of-months occupancy per property?

Well, if I want to get owner financing then I have to be the occupant.

Full access and occupancy of property full charge of day-to-day operations including all revenue generated fully responsible for all expenses and maintenance of property Allowed two inspections a year to ensure proper maintenance and operation of property All improvements will be funded by buyer and 100% of net profit Buyer to obtain permanent financing within 24 months Deposits and 50% of interest as down payment If permanent financing not obtained by buyer, all deposits, interest and improvements are non-refundable

I would further hypothesize that 50k home markets present a lesser risk of default on owner occupant buyers as the median income is often in excess of 33% of the home's price, while low enough to disqualify people from other big ticket purchases. 20% of the REOs I've gotten in 50k home markets have been from owner occupants.