Home : Blogs : Tommy Xintaris FHA VA & Conv. Texas Mortgage Home Loans : FHA, VA & Conv. Texas Mortgage Home Loans- Tommy's 2 Cents

Identity-of-Interest Transaction Down Payments

An Identity-of-Interest transaction is where a sales transaction is made between parties with family/business relationships.

To break it down very simply, and this is USUALLY always the case, when a family member sells to ANOTHER family member, FHA looks at that as an Identity-of-Interest Transaction.

I get at least 1-2 calls per month with this scenario, and want to post it on my mortgage blog to educate YOU, the consumer.

So even though FHA has a minimum down payment requirement of 3.5%, in THIS case, you would have to put down 15% percent.

Here is ONE of the exceptions to this rule:

1. The family member has rented the property for at least 6 months predating the contract, in which case a rental agreement will be needed.

If you are in this type of situation and do not have the 15% to put down, feel free to contact me for more info and some other tips that may help you out!

Posted by Tommy Xintaris FHA VA & Conv. Texas Mortgage Home Loans on 05/14/2009 09:24 AM

Comments (1)

FHA Loans in the ActiveRain Channel

fha financing, fha houston, fha mortgage, fha texas

This post has been included in Texas Information
Post is included in group: The Single Home Buyer and Seller
Post is included in group: Texas Real Estate
Post is included in group: Realtors®
Post is included in group: Austin Texas Realtors
Post is included in group: 1st Time Buyers

1 Comments on Identity-of-Interest Transaction Down Payments

NOV

What if the daughter is living with the parents in the house that she is trying to buy, do you still need rental agreement or 6-month cancelled checks?

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?