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#2199512 - 11/30/18 04:29 PM Investment Property Purchase w/ Improvement Funds
crazylady Offline
100 Club
Joined: Sep 2009
Posts: 108
We have a dwelling secured investment property purchase that we are also giving extra funds to make improvements on the property at the time of purchase.
We have an appraisal that is based on the improvements being completed. Is that the amount we would use in the Property Value for HMDA since that is the amount we are relying for making the credit decision?

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#2199623 - 12/01/18 12:06 PM Re: Investment Property Purchase w/ Improvement Funds crazylady
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Paragraph 4(a)(28).
1. General. A financial institution reports the property value relied on in making the credit decision. For example, if the institution relies on an appraisal or other valuation for the property in calculating the loan-to-value ratio, it reports that value; if the institution relies on the purchase price of the property in calculating the loan-to-value ratio, it reports that value.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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