Out of state FHA co-signer

[Ryan Bynes]

Hello,

I'm interested in purchasing a two-flat in Indiana for $80,000 using the FHA first-time buyer program. I'm hoping to live in one unit and rent out the other. I am moving to Indiana next month but currently live in Chicago. I've been self-employed for 8+ years and I don't show much income after all of my deductions. I have a family member that, combined with his wife, makes north of $400,000 annually. He has offered to co-sign on the building. He lives in Chicago.

Does the FHA program allow for an out-of-state co-signer?