Out of State Investing - Financing

[Kevin Mansfield]

I have been looking to invest in the town I went to college due to the growth its been experiencing primarily due to growth of the university and have since moved out of state. After months of searching for properties I've identified a multi-family that perfectly fits my criteria but due to life events (getting married and my future wife and I bought a primary residence) I'm short of the typical 20% down payment that most lenders are requiring since I will not be occupying the property. I've been trying to find creative ways to finance the property so I can act quickly since this property is checking all the boxes I want.

One strategy I've been thinking is partnering with a friend who still lives in the town so he could be on the primary borrower on the bank loan and potentially qualify for an FHA loan which would significantly reduce the down payment requirenments. I understand then he would be required to intend to live in the property as part of the qualification process for the FHA loan but this would not be a problem since the property is a newly updated multifamily in his neighborhood. I would be providing all the necessary capital but would give my Partner a portion of the deal since he is bring me the ability to obtain my desired financing.

Has anyone structured a deal like this? Any advice/tips on how to structure or document the arrangement?

Also, open to other financing strategy suggestions that might works here.

(Disclaimer: I understand people replying are not lawyers and cant provide legal advice; I won't take it as such)