#1740290 - 09/12/1206:56 PMRe: Down Payment Loan on House HMDA Reportable? gunches
raitchjay
Power Poster
Joined: Oct 2009
Posts: 9,105
OK
If i get a loan to buy my son a house, the purpose IMO is for me to give a gift to my son, not purchase a house, as at the end of the transaction, i don't own a new house.
If the father is not a party to the purchase transaction then the money he borrowed is a gift to his son, not to purchase a dwelling. How the son uses the gift has no bearing on the purpose of the father's loan.
You have to look at what your borrower is using the loan proceeds for and in this case the father is using them to give to his son.
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The opinions expressed are mine and they are not to be taken as legal advice.