A number of people place their homes in the name of a LLC. There are benefits for asset protection and estate planning. The people occupying the home own the LLC. We have seen some commercial loan requests to refinance second homes that are owned by a LLC, but are not leased to third parties. Is a home owned by a LLC subject to consumer regulations? If someone is leasing their second home to tenants, how much leasing needs to occur before it is considered an investment property? Would it need to be leased half of the year? We have seasonal residents (“snowbirds”) who lease their homes while they are away in the Summer. My assumption would be that a home needs to be offered for lease at least half of the year to avoid being classified as owner - occupied, but I’m probably wrong.

If someone is leasing their second home to tenants, how much leasing needs to occur before it is considered an investment property?

100% of second/vacation homes are investment properties.

If you are referring to what makes it a non-owner occupied or owner occupied rental property then if the owner stays in the home 14 days out of the year then it is owner occupied rental property and you have to refer to 1026.3 and its Commentary for the requirements under Reg Z. However, credit extended to a non-natural person is exempt from Reg. Z.

If the credit is extended to a natural person then you have to determine if the loan proceeds are for a business or consumer purpose. If for a consumer purpose the loan is subject to Reg. Z regardless of the collateral.

Thanks Dan for the reply.