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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
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?


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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.
The opinions expressed are mine and they are not to be taken as legal advice.

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