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#1819378 - 05/31/13 08:40 PM LLC purchasing a home
notuntermywatch Offline
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Joined: Jun 2006
Posts: 392
MN
A borrower wants to purchase a home as an LLC - borrower is LLC, title is in LLCs name; however, the principal of the LLC will live in the home along with a few others who will pay him rent.

I know that this is exempt from Reg Z because of the LLC element, but would we still need to give all of the RESPA disclosures?

Thanks

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Lending Compliance
#1819393 - 05/31/13 09:23 PM Re: LLC purchasing a home notuntermywatch
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,958
Bloomington, IN
If you can exempt it as a business purpose loan under the owner-occupied rental exemption in 1026.3 then RESPA would not apply. If it doesn't meet the business purpose test then RESPA would apply.
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The opinions expressed are mine and they are not to be taken as legal advice.

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