I know we've had the reverse discussion many times, but I couldn't find a thread (in a very quick search) that discussed the following:

A company is getting a loan to purchase a property that is currently vacant office space. They are using their own funds to improve the property and turn it into apartments. Is this a reportable purchase?

As I'm typing this, I want to say no. The funds of the loan were used to purchase an office building. None of the money went towards improving, refinancing or purchasing a dwelling. Now, if the money were to be used to purchase and turn the property into apartments would my answer be different?

Any one have any input on this?

Thanks in advance!

The intended use of the property being purchased is to be residential. I would report it as a home purchase just as I would not report the purchase of a dwelling to be converted for non residential purposes as a home purchase.

That's been my thought too Dan, but this one threw me for a loop, mainly because they aren't using our loan to do the renovation.

It's best to stay consistent though, and that's an easy rule to remember.

Thanks for your input!

I took that into consideration in stating my opinion. If they purchased a dwelling that was to be later converted to office space with their own money the loan would not be reported as a home purchase due to the intended purpose. I just applied that train of thought to the reverse situation. Their intended purpose is to purchase a dwelling.

Thanks Dan!