Since your borrower is the LLC and the purpose is to acquire "non-owner occupied" rental property (the LLC can't "occupy" the rent home, even though one of the owners of the LLC will) i'd argue that it's exempt from RESPA as business purpose. Now if the loan was to the LLC with the purpose of buying the primary residence (not a house that he is going to rent, but a house that he will reside in based on the good graces of the LLC) of one of the LLC borrowers, i'd look at it differently. Having said all of that, i've never faced that scenario and will be curious if others agree or disagree.
Last edited by raitchjay; 02/21/13 07:11 PM.
ETA: not sure i stated that as clearly as i could. In my eyes, the property is a non-owner occupied rent home. The fact that the LLC owner is the renter doesn't change how i'd look at it.
I'm fixin' to fix that.