What are the loan to value requirements for non occupying coborrower?

Updated: 09/30/2019
Article #: 179


 LTV Limitations Based on Non-Occupying Borrower Status
(1) Definition A Non-Occupying Borrower Transaction refers to a transaction involving two or more Borrowers in which one or more of the Borrower(s) will not occupy the Property as their Principal Residence.
(2) Maximum LTV for Non-Occupying Borrower Transaction For Non-Occupying Borrower Transactions, the maximum LTV is 75 percent. The LTV can be increased to a maximum of 96.5 percent if the Borrowers are Family Members, provided the transaction does not involve:
  • a Family Member selling to a Family Member who will be a non-occupying co-Borrower; or
  • a transaction on a two- to four-unit Property.






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