Identity of Interest: A grandmother passed away and the granddaughter wants to buy the house from her estate. Is this an identity-of-interest situation that would limit her max LTV to 85%?
Answer: FHA will allow an exception to their Identity-of-Interest LTV restriction for Family Member transactions. Call me! While this would be an underwriter call, it is my opinion that this would be considered a family member transaction, which would create an exception to the maximum LTV. Reference: Handbook 4000.1 states the following: (A) LTV Limitations […]