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Multi family owner occupied investment property in Chicago. 5% down?

In case anyone has knowledge on this market and is awake at this hour figured I would ask. Looking seriously into at a 4 unit in Chicago and we had initially had an offer 652k with 3.5% down using an FHA loan. Seller said they would accept that price if we can get a conventional mortgage instead. Local lender #1 told me 2 weeks ago lowest I can get done for conventional is 5%. That's fine, we can afford that. Lender #1 wasn't available today for new non FHA pre-approval so I called lender #2, who promptly told me that there is "no product available on the market" that will allow me to do a conventional loan at 5% down on a 4 unit owner occupied investment property in Chicago. WTF? I was under the impression this was not a problem at all. Lender #1 is from a very large company while #2 is from a much smaller practice but has been doing this in Chicago for 19 years.

Does anyone have any experience with the Chicago market in this regard that can shed some light here?

submitted by /u/tiddygang
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source https://www.reddit.com/r/RealEstate/comments/hhrmrc/multi_family_owner_occupied_investment_property/
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