203 K loan "gifted" down payment and closing

[Tyler Hasenauer]

Hey everyone! I'm a first time home buyer and I am looking at a 2 unit house that I would like to house hack. However it is a foreclosure and needs rehabbed so I'm attempting to take the FHA 203 K route. However I don't have enough money for all of the closing costs with the downpayment. I have a friend that would loan me the money but the FHA requires that the money given must be a gift. In other words there can be no intention of paying it back. This has obviously thrown a wrench in the process for me. I have family that could potentially help me out as well but they would still want paid back with interest. Is there anyway around this or any creative ideas? Thank you

[Christian Bors]

How much of a down payment do you need? Isn't FHA 3.5%? If you can't afford the down payment, what will happen when you a big cap ex item arises? I would build your reserves first. Recently, I had a tenant move out. This project cost me about 10k to get it back to rentable status. Then this week I found out I have to waterproof a basement. Poof, another 5k gone.