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#2057341 - 01/08/16 01:58 PM Consumer or Commercial?
mdog76 Offline
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Joined: Jan 2007
Posts: 645
Our secondary market lender was just curious how others are handling this situation. Customer is wanting to get funds to fix up a house that he has owned for years but does not live in in order to sell it. Since its a potential income property, could this be considered a commercial purpose loan?

Thank you.

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#2057342 - 01/08/16 02:01 PM Re: Consumer or Commercial? mdog76
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,281
Has it been a rental property? Selling a vacant home that used to be your residence is a consumer purpose transaction.
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Kathleen O. Blanchard, CRCM "Kaybee"
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#2057351 - 01/08/16 02:19 PM Re: Consumer or Commercial? mdog76
John Burnett Online
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John Burnett
Joined: Oct 2000
Posts: 39,793
Cape Cod
Whether a loan is consumer or business purpose is all about what the borrower will do with the loan proceeds and nothing to do with what a purchaser might do with the property. I agree with Kaybee. Unless your borrower is in the business of buying and selling dwellings, this appears to be a personal (read: consumer) loan.
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John S. Burnett
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