A party who has a financial interest in the mortgage transaction, such as the seller, builder or real estate agent, may not be a co-borrower or a cosigner. Exceptions may be granted when the party with the financial interest is a family member.

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.

A family member is defined as follows, regardless of actual or perceived sexual orientation, gender identity, or legal marital status:

  • Child, parent, or grandparent;

-   a child is defined as a son, stepson, daughter, or stepdaughter;

-   a parent or grandparent includes a step-parent/grandparent or foster parent/grandparent;

  • Apouse or domestic partner;
  • Legally adopted son or daughter, including a child who is placed with the borrower by an authorized agency for legal adoption;
  • Foster child;
  • Brother, stepbrother;
  • Sister, stepsister;
  • Uncle;
  • Aunt; or
  • Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law of the borrower.