Is this really an issue for an FHA?

I want to move out on my own as I currently live with parents rent free and I thought a good way to do that would be to take advantage of an FHA on a multi so that I could not only be on my own but also continue living rent free and potentially supplement my income.

A win win win as I am not qualifying for many a home in my high cost area nor can I really afford it without doing so but the major problem appears to be that I was added to the title/deed to my parents home years ago as a way to possibly retain the property in the event something drastic happened to them, instead of the usual living will and trust, etc. I am not on the note or obligated financially however.

Now some brokers I have spoken to said this is usually a problem with an underwriter because of the people who try to illegally aquire rentals already owning a home, trying to cheaply finance a multi investment but my circumstances are different even though it is similar in that I "technically" already own a single family primary home although with other family members and want to go to a multi.

I don't think it is fair for them to discriminate against me on that basis, that is a risk with anyone who takes out an FHA for a multi, they shouldn't hold that against me or the many people in my exact situation simply because I already own property. They should allow it for investors under stronger conditions or not have it available for multi at all if that is the case.

I understand it is a precuation for the right reasons but it is their job to follow up with who is or isn't doing the right thing, they should not keep people away just because there is that chance or it seems more likely in certain cases over others. I'm sure the total opposite of what they pre-determine actually goes on in most cases too.

Don't mean to vent but this should not be an issue, as long as it isn't another or 2nd FHA loan and even then there are circumstances when you can have more than one FHA, I have been told. I simply want to vacate and move on to something else as people often do with FHA although I will not be able to generate a lease suggesting I am renting mine and my family's other home for the obvious reasons.


1) Will this be a deal breaker and keep me from FHA financing?


2) If it is not, would my current property be considered a 2nd home or an investment after, or whatever I disclose it as?


3) Some have told me it may not come up as an issue or the lender will not know. Is there anything illegal about that if the lender does not catch it? I could disclose that I live with parents and that's all I am saying about that unless pressed because I feel it's unfair but it isn't worth doing anything illegal over IMO.


4) I may be required to come off the title in order to do this. Any issues with going back on later?


Thanks.