Great point regarding occupying a unit in the property which is what a lot of investors in DC do. We have very good options for row houses that do fit the requirements and have wonderful owners units.
As you can see, you do have options but we must analyze your specific needs and how that may fit into your goal of investing in one of the most stable markets in the country. I would prefer not to try to fit your investing strategy in a conventional box until details are known. Please let me know if you would like to discuss details at my DuPont office.
The FHA 5% down for multifamily is for non for profit organizations. Unless your looking to run a halfway house or foster home, that program does not apply. You can also get a FHA loan if you plan on occupying a unit in a 4 plex or less......thats probably not your idea of investing Jerry.
Other ways to obtain financing with less than 20% down is to partner with someone. Thants a whole other can of worms.
Please post the link showing FHA 95% multifamily FHA financing. Im curios to where you came up with that program.
There are multiple ways to still get financing on investment properties greater than 80%. I am working with clients now that are doing FHA with 5% down for a multi unit building in NW. You must have the right team in place to know all options. Let me know if you want to talk about details.