FHA multi-family Co-borrower/signer

[Shawn Bhatti]

Hello fellow BP members,

My sister and I are looking to purchase a multi-family property in Austin, TX sometime next summer. With the low down payment option, we are targeting an FHA loan. We would both ideally be co-signers, as I help find/fund the deal, and she will find tenants to occupy the other units while simultaneously living in one of the units. Using both of our qualifying incomes, we would increase our range of available properties. My primary question however is such: can you put 3.5% down as a co-borrower/signer if one person is not occupying? In this case we are obviously blood related, and she would be occupying a unit but I would not be occupying. Any guidance/knowledge is greatly appreciated; thank you.

[Harjeet Bhatti]

@Shawn Bhatti You can contribute 3.50% down payment as non-occupying co-borrower.