FHA 203k Multifamily with Non Occupying Co Borrower

[Scott Em]

Hi all! I understand that in order to use a 203k with a non occupying co borrower for anything between 2-4 units (basically other than a SFR), the down payment increases from the 3.5% to 25%. I am a bartender and the majority of my income comes in the form of cash. While I can afford payments, I simply cannot show it through wage reports and bank statements. Thus, my income is insufficient. I have a willing non occupying co borrower who's income more than makes up for my lack thereof, however I do not have the capital for a 25% downpayment. What, if any, are some creative ways around this? I understand the reasoning for the increase in downpayment, however in my case my co borrower is not doing this as an investment strategy, but simply to aid myself. Thanks in advance for the replies!

[Michael Cohen]

The down payment on an FHA 203K remains at 3.5%, even when you have a non-occupying co-borrower.