@Thomas Baylor Gift of equity can be used for primary and 2nd home only according to Fannie Mae guidelines. 

@Julia Petrac  These are standard guidelines for gift of equity under Fannie Mae:- Gift of EquityA “gift of equity” refers to a gift provided by the seller of a property to the buyer.

FHA/Fannie Mae have a buy and rehab program all in one that allows you to do both.

They are more flexible that national chain banks because often they do not resale their loans to Fannie Mae. 

I was told it was due to the property being "multi-purpose" and not in line with Fannie Mae guidelines.

Update to my initial post…. so everyone is aware, Fannie Mae is allowing 5% down on 2-4 unit residential properties.

., it's best to read the security instrument or the NCGS requirements, like at NCGC 45-21.10 Requirement of cash deposit at sale before you grab a fist full of $100 bills and run to the courthouse with your 5%.A large percentage of security instruments will be from a GSE, with Fannie Mae forms being very common.

Fannie Mae just released a 5% down conventional product for 2-4 units as well, it will go live November 18th, 2023. still waiting on guidelines, but this could open up something for you as well. thanks for the tag @Alex Bekeza !

If its a Fannie Mae type loan.

Regarding your goals, could be good timing as Fannie Mae recently introduced the 5% down option on 2-4 units this past November.