What credit score and down payment are required?

FHA allows 3.5% down with a 580 score, or 10% down with a score of 500-579. Individual lenders may require higher scores.

Can the down payment be a gift?

Yes — your full 3.5% down payment can come from a family member as a documented gift, which helps in many of these situations.

FHA Loan With a Co-Signer

Here is the straight answer on fha loan with a co-signer for 2026 — the FHA rule, the exceptions, and how to put your strongest file forward.

The short answer

FHA allows co-signers (who are liable but do not take title) and co-borrowers (liable and on title). Their income helps, but their debts count too. Non-occupant co-borrowers must be family to keep the 3.5%-down option.

What lenders focus on here

Beyond the rule above, an underwriter weighs the whole file — but the factors that matter most in this situation are credit, documentable income, and your debt-to-income ratio.

Down payment source: the 3.5% can be gifted or come from assistance, but it must be fully paper-trailed.
Down payment: 3.5% minimum (580+), and gift funds are allowed.
Lender overlays: minimums vary by lender, so comparing several is worth it.

FHA guidelines and lender overlays change. Join the free FHA Notification Program to be alerted when the rules that affect this situation shift.

Your next steps

Pull your credit, gather two years of income documentation, and get pre-approved so you know your real budget. Because lenders set their own overlays on FHA's baseline, comparing two or three is especially important here — one may decline a file another approves.

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Frequently Asked Questions

FHA Loan With a Co-Signer — is it possible in 2026?: FHA allows co-signers (who are liable but do not take title) and co-borrowers (liable and on title). Their income helps, but their debts count too. Non-occupant co-borrowers must be family to keep the 3.5%-down option.
What credit score and down payment are required?: FHA allows 3.5% down with a 580 score, or 10% down with a score of 500-579. Individual lenders may require higher scores.
Can the down payment be a gift?: Yes — your full 3.5% down payment can come from a family member as a documented gift, which helps in many of these situations.