We have a loan that is secured by the borrower's principal dwelling and also by the property being purchased. The property being purchased is a 40 acre tract of land with a home that is completely uninhabitable. The roof on half of the house is caved in and it has not been lived in for years. This meets the first stipulation of being HMDA reportable since it is secured by a dwelling, but does it meet the second stipulation as a purchase of a dwelling? Would the new property be considered a dwelling given the current conditions of it? I'm leaning towards yes, but my Friday brain has kicked in so I need other opinions!

If it's a "never to be occupied" again, and if no funds are going toward home improvement, I would consider this an equity loan.

Is the loan consumer purpose or business purpose? It only matters if the loan is to purchase a dwelling if the purpose of the loan is business purpose. If it is consumer purpose, it will be HMDA reportable just because it's consumer purpose and secured by a dwelling (unless one of the other HMDA exceptions applies).

I don't disagree with Moman, but I also don't think we have enough information to provide a clear answer. First, the purpose of the loan could have an impact on the answer to this. For example, is the purpose to purchase 40 acres of land to farm? Or to purchase 40 acres to split them up into lots to sell (like a developer would)? Also, is this loan satisfying and replacing a prior loan that was secured by the borrower's principal dwelling? Furthermore, do they have plans to either tear down the uninhabitable dwelling, or do they plan to fix it up and rent it out?

If the house is uninhabitable, then it’s not a dwelling. It’s a building. That’s what I want to clarify.

As Beech and Adam asked, what’s the purpose of the 40 acres purchase. If it’s Ag, then this loan is exempt from HMDA. If it’s consumer purpose, then it would be “other”as Moran stated.