Technically, your husband would be a non-occupying coborrower:
"A non-occupying borrower transaction involves two or more borrowers
where one or more of the borrower(s) will not occupy the property as his/her
Therefore HUD HUD 4155.1 2.A.2, states that you are allowed maximum financing (3.5% down) since you meet one of the following criteria:
"...maximum financing, as described in HUD 4155.1 2.A.2, is available for
â€¢ borrowers related by blood, marriage, or law, such as
âˆ’ aunts-uncles, and
âˆ’ nieces-nephews, or
â€¢ unrelated individuals who can document evidence of a longstanding,
substantial family-type relationship not arising out of the loan transaction. "
Assuming he qualifies as a non-occupant coborrower, you should be fine.