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.
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