Commercial loan. Customer is borrowing to make improvements to the building. Loan is secured by the commercial building.

Part 365-Real Estate Lending Standards defines:

Construction as an extension of credit for the purpose of erecting or rehabilitating buildings or other structures, including infrastructure necessary for development; and

Improved property loan as an extension of credit secured by one of the following types of real property:
...(4) Completed commercial property

Does the above loan for improvements fall under the LTV of 80% for construction or 85% for improved property?

Need help as quickly as possible...management is waiting on an answer.

Thanks in advance for your help!
Last edited by SRR; 12/12/11 09:44 PM.
_________________________
Always learning something new...