1. General Information on Transactions Affecting Maximum Mortgage Calculations

Change Date

May 10, 2009

4155.1 2.B.1.a Types of Transactions

Certain types of loan transactions affect the amount of financing available to a borrower, and determine how to calculate the maximum mortgage amount.

The types of transactions include

•	identity-of-interest

•	properties with non-occupying coborrowers

•	three- and four-unit properties

•	properties where a house will be constructed by a borrower
	–	on his/her land, and/or
	–	as a licensed general contractor

•	payoffs of land contracts, and

•	transactions involving properties
	–	under construction, or
	–	less than a year old.

Note: Unless otherwise stated in this handbook, the mortgage calculation procedures described in HUD 4155.1 2.A.2 also apply.