Do you have a significant other who could take out the loan?

I see little benefit in the FHA as an option as long as the 5% conventional loans are available now.  

Loan interest is deductible based on the use of the loan, not the asset securing the loan. 

If the other two parties want to flip a house maybe they can do just that as partners and then sell you the house which you can buy with a primary home loan with low down payment.

Your house loans will be long term say 25 years.

Quote from @Sri Reddy: We are a team who are venturing in to constructing a multifamily unit from groundup.We don't have any prior experience in construction and are looking for financing loan options.

You're probably better off getting a Hard Money Loan.

What other kinds of loans or financing strategies are available that don't involve using too much of your own cash?

We are looking at a house that is being auctioned next week in Gulf Shores.

Perhaps we "buy" the house from them for the $328K balance to satisfy the lender and don't need a large down payment and then have a separate contract with them to pay $x per month until we've paid the full $172K amount.