If a non-occupying co-borrower is a cousin, are they considered a family member for an FHA loan?

Answer: Unfortunately, a cousin is not considered a “family member” per the FHA  definition.  That said, the cousin can be a non-occupying co-borrower, but the LTV will be limited to 75%.  Please see the full guidelines below regarding non-occupying co-borrower transactions and the definition of a family member. Reference: 4000.1  II. A. 2. b. ii [...]