FHA First Time Homebuyer 4 Plex - Using Partners

[Justin Raddatz]

My brother-in-law qualifies for, and is pursuing, FHA first time home buyer financing. I believe this requires a 3.5% down payment and no mortgage insurance. Nice terms. Colorado also offers grants applicable to down payments and closing costs.

His intention was to buy a single owner-occ townhouse. However, I understand that this financing is also applicable for up to 4-unit properties if he resides in one of the units for one year. He is open to looking at 2-4 plexes with me as long as he can still secure the FHA financing program and/or I bring all additional capital and effort to the deal above and beyond what he would incur by just buying a single unit for himself to live in.

Is anyone aware of a way for a first-time home buyer to partner with a non-first-time-buyer, using the FHA program on a 2-4 unit transaction? He could not income-qualify or support a down payment for a 4-unit on his own.