I was looking into partnering them leveraging their capital and getting a loan.

This should be an easy one for a hard money loan.

I would have to do a 5% conventional loan to avoid the self sustainable test required for an FHA loan.

Just a loan for one million FHA loan 

Engage in social networking with other investors, both locally and virtually, and investigate innovative funding alternatives such as VA loans, FHA loans, or other government-supported schemes.

We're currently vetting architects/engineers and looking at construction loans. 

At least not without setting up loans between the llcs.

Reduced down payments are possible for multifamily buildings using financing options such as FHA loans, which are less expensive than traditional loans.Find local programs that can help with a down payment, look up programs in your region, get in touch with lenders or mortgage brokers in your area, and fulfill the eligibility requirements by attending homebuyer education workshops.

They work, have parents, student loans, grants, and scholarships to help offset housing.5.

Seems like you need to be or know a few commercial/business loan brokers though..