FHA 96.5% Financing With Co-signer Not Occupying

[Matthew Hagen]

Hey all, 

I'm working on making my first deal this summer and have a great deal on the hook, but am struggling with lenders.

I am looking at buying a triplex for $169,900 that cashflows great, and have been talking with multiple local lenders about the FHA financing. I bring to the table that I have never owned a home, will owner occupy, have great credit and can afford the down payment and other acquisition costs x2 over. However, I am not currently employed, so I was hoping to use a co-signer to overcome this hurdle. The problem I am running into is that the co-signer will not also be occupying, which was a red flag for this lender.

Has anyone used a lender that does not require the co-signing party to also owner occupy for the FHA loan or is that a universal deal-breaker??

Thank you!