Maybe you have enough down for a conventional loan otherwise, so that wouldn't matter. 2) Another option would be to form an LLC.

There's also a question of whether it makes sense for my business to lease 51% of the building (I really only need a small office for that business and the building is about 6400 square feet).Would it be better for me to just negotiate a master lease with option so I will have 3 years to generate the 20% down payment for a conventional loan?

Conventional mortgage.

Another thing to think about is what alternatives do you have other than a conventional 20% down owner occupied loan or a 3.5% FHA loan.

As far as financing we have a lot of options, VA loan, we have cash for down payment if we go conventional.

we are currently under contract for a property under market value and can use some rehab. purchase price at 350k, needs about 25-30k of rehab. we have 2 ways to finance it. either take out a conventional loan with 20% down and pay for rehab, out of pocket is 100k (70k down + 30 k rehab), but this is money locked into the deal we can't access for much longer.

My budget is 150K-200K looking to purchase with a conventional loan. 

Conventional 30 year fixed loan with 5% downHow did you add value to the deal?

In this seller's market, if there are multiple offers, a 203k loan will not be as strong as a conventional loan.  2.

I already have a conventional loan with my primary residence (purchased less than a year ago) so I will have to go the 20% route to get financing.A family relative is willing to put the down payment from his funds if I am willing to get the loan and be responsible for it.