Between a Rock and a Hard Place: How Do I Make This Work?

[Clint McAllister]

Hey everyone!

I just posted a few days ago about my situation, but this time I will simply:

In short- I am currently under contract for buying a property zoned as a duplex/multi family. I did not find out until a few days ago that it was zoned as such (was under contract for 10 days already, with my escrow deposit a week in). I should mention my dad is a co-signer and will be helping me with the down payment.

The property has a 3/1 house with a detached garage with renovated income apartment on top, which I plan to rent out.

Now, we have hit a huge snag. I have been told that my original plan (conventional loan with 5% down) can no longer happen because of the zoning. The minimum for multi family/duplex is 15% down, which may not be feasible.

I would just switch it to FHA, but I have been told the co-signer on a multi family FHA MUST be an occupant. Is this actually true?? Is there a way around this AT ALL with FHA??

What can be done here? I’m trying to keep the process moving and really want to see this through.

Thank you!