Non-occupied co borrow loan requirements

[Dan C.]

I’ve searched this topic but couldn’t find the answer I’m looking for. I have a friend in college who is looking to buy a home to live in while attending school but doesn’t have the down payment or income requirements to do so. He would be living in it with other students whose share of rent would cover the mortgage, etc. If I were to become a non-occupied co borrower would we be able to get a conventional loan with 5% down? When I was reading up on FHA there appeared to be stipulations about having to be related or prove a longstanding friendship (whatever that means). I did not read anything similar for conventional. Just wondering if there is a way to help my friend out without having to put down a sizable down payment. I understand the risk involved becoming a co borrower. TIA!