Do I need atleast 15% for FHA if I have family cosigner (duplx)?

[Edwin Rajkumar]

Hi everybody! I am looking at purchasing my first home within the next couple months. I'm facing a roadblock that I would love to get feedback from those familiar with FHA guidelines.

The house I am looking at is a duplex. I plan on house-hacking it. I have a non-occupant cosigner (sister).

2 lenders I spoke with told me I would need 15% down, instead of the 3.5%, as a consequence of having a cosigner.

Then, just today I spoke with a lender who told me those lenders don’t have a clue what they are talking about and he could help me.

Why am I hearing different things? Who is right here? Has anyone faced a similar situation? If I need 15% down, what are my other options here?

Thanks much. 

[Harjeet Bhatti]

@Edwin Rajkumar Guidelines from FHA:-

Maximum LTV for Non-Occupying Borrower Transaction

For Non-Occupying Borrower Transactions, the maximum LTV is 75 percent. The LTV can be increased to a maximum of 96.5 percent if the Borrowers are Family Members, provided the transaction does not involve:

 a Family Member selling to a Family Member who will be a non-occupying co-Borrower; or

 a transaction on a two- to four-unit Property.