An identity of interest transaction is a sales transaction between parties with family or business relationships.
The maximum LTV factor for identity of interest transactions on principal residences is restricted to 85 percent.
1) A family member purchases another family member's home as a principal residence. If the property is sold from one family member to another and is the seller's investment property, the maximum mortgage is the lesser of sales price or appraised value.
2) An employee of a builder purchases one of the builder's new homes or models as a principal residence.
3) A current tenant, including a family member tenant, purchases the property where he/she has rented for at least six months immediately predating the sales contract.
4) A corporation
a. transfers an employee to another location
b. purchases the employee's home, and
c. sells the home to another employee.
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