Columbus, OH · Member since 2017 · 101 posts · 56 votes
I recently attended a first time home buyer's class to see about possible down payment assistance. While there, a lender who came to speak said that it isn't possible for me to get an FHA loan if I'm buying the property from a family member. My uncle recently purchased a duplex and I was hoping to buy it from him as a first time home buyer. Does anyone know if there is anyway that I would still be able to do an FHA loan if the property is owned by my uncle? Thanks in advance!
Loan To Value ratio is the amount borrowed vs. the value of the property. Either the appraised value or the sales price, whichever is lower.
So, $80,000 loan on a $100,000 house would be a 80% LTV.
FHA loans will normally allow a borrower to put down as little as 3.5%. But in the "identity of interest" situation, you would need to put down at least 15%, or 85% LTV.
Christopher Phillips I appreciate the response! I'm still new to the real estate world and learning all that I can. If you don't mind, could you please elaborate on what them only allowing 85% on the LTV would mean for me?
Loan To Value ratio is the amount borrowed vs. the value of the property. Either the appraised value or the sales price, whichever is lower.
So, $80,000 loan on a $100,000 house would be a 80% LTV.
FHA loans will normally allow a borrower to put down as little as 3.5%. But in the "identity of interest" situation, you would need to put down at least 15%, or 85% LTV.
Christopher Phillips thank you! I really appreciate the information! One last question, hypothetically, would that 100 K be based on the bank's appraisal or the actual purchase price?