If an executive officer has exisitng 1st DOT on home & wants to refi & extract additional $ for investment purposes, under Reg O refi this can't be done. According to 215.5, a refinance is authorized only to repay the original extension of credit together with closing costs and any additional amount for maintenance, improvement, etc. Am I right so far???

Also, if the 1 DOT loan identified above is an investor loan it does not count against the exec officer's borrowing limit, correct?

1. You are correct.

2. If you mean that some other creditor actually owns the loan - you are also correct.

I just want to make sure I understand the answer on this one. I understand why it could not be done under the "unlimited" category" since it would not qualify under that category.

Would it be correct however to say that it could still be done but put in the "other" category if the aggregate amount of the cash out refi for investment purposes and all other loans in the "other" category did not exceed $100,000?

If the refi was for less than $100K - yes - it could be done in the "other" category, if it plus any other loans in the "other" category remained under $100K.