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#2036455 - 08/31/15 04:35 PM loan secured by rental property but proc to son...
pjs Offline
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pjs
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A loan secured by the borrower's rental property but the proceeds will be given to his son to buy a home- that would be consumer purpose and not commercial wouldn't it? Thanks

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#2036456 - 08/31/15 04:37 PM Re: loan secured by rental property but proc to son... pjs
Jade'sFire Offline
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Jade'sFire
Joined: Apr 2012
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Yaven IV
Assuming the son is purchasing a home for his personal use (not purchasing a rental property) then the loan's purpose is consumer.
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#2036460 - 08/31/15 04:42 PM Re: loan secured by rental property but proc to son... pjs
danaken Offline
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Posts: 88
OK
I agree.

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#2036466 - 08/31/15 04:55 PM Re: loan secured by rental property but proc to son... pjs
pjs Offline
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Thank you both.

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#2036497 - 08/31/15 05:56 PM Re: loan secured by rental property but proc to son... pjs
Richard Insley Offline
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Richard Insley
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Toano, VA
The rental property exemptions hinge on the loan purpose, not the nature of the collateral. In fact, there doesn't even have to be collateral for these exemptions to be available!
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#2036544 - 08/31/15 08:17 PM Re: loan secured by rental property but proc to son... pjs
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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I presented a webinar last month that delved into those types of situations.

Link to webinar in store
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#2036587 - 09/01/15 11:23 AM Re: loan secured by rental property but proc to son... Kathleen O. Blanchard
pjs Offline
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pjs
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My brain was so fried yesterday I couldn't even think. Thanks for the link. I'm going to see about getting it.

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