Mr. Hernandez is correct. Have your cousin give you 12 months cancelled checks to show your lender that he/she is making the monthly payments. If he/she doesn't pay with checks, get a printout of the payments made from the bank statement for 12 months. The debt will not be counted against you. If your cousin bought the house with an FHA loan, I'm assuming that you were a non-occupying borrower. If that's the case, you may still buy a house with an FHA loan.