Non-Occupied Borrower Problem

[Jaime Guzman]

I have kind of hit a wall. I am in the process of investing in my first 4-plex in Phoenix, AZ. I was planing to finance it with an FHA loan with 3.5% down. My dad was going to be a co-borrower and provide some of the down payment money. I know we qualify for a 3.5% down payment grant as well. I was planning on house hacking and living in one of the units so we could get the owner-occupied loan rate... BUT, after talking to a lender I found out that because my dad will be one of the borrowers and will not be a resident it would be consider a Non-Occupied Borrower Loan where we would have to put down 20%. I wanted to know if there are any other lenders out there that would finance with the 3.5% down payment, or any other option we would have. All of the properties I am looking at have DCR of 1.25. I appreciate any help offered. Thank You.