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#2214783 - 06/03/19 05:18 PM Farmhouse on Commercial Ag Property
Norman Paperman Offline
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Norman Paperman
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Thoughts on this. I'm thinking there is no exemption here, but need some BOLers to authenticate my opinion.

Borrower is purchasing land to set up an agricultural operation. There happens to be an old farm-house on the property (for which, wait for it... the borrower says there is no use). I'm thinking that, while the farm-house might technically be a residential structure, the property and purpose overall is commercial, and thus, no exemption.

Am I crazy? Fire away.
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Flood Compliance
#2214787 - 06/03/19 06:08 PM Re: Farmhouse on Commercial Ag Property Norman Paperman
rlcarey Offline
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rlcarey
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Galveston, TX
Exemption from what?? Escrows??

(ii) Exceptions. Paragraph (e)(1)(i) of this section does not apply if:

(A) The loan is an extension of credit primarily for business, commercial, or agricultural purposes;
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#2214794 - 06/03/19 07:17 PM Re: Farmhouse on Commercial Ag Property Norman Paperman
Norman Paperman Offline
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Norman Paperman
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Wow! My mistake. Exemption from flood.
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#2214801 - 06/03/19 07:53 PM Re: Farmhouse on Commercial Ag Property Norman Paperman
rlcarey Offline
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Galveston, TX
No building is exempt from flood insurance regardless of its use or non-use.
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#2214804 - 06/03/19 07:59 PM Re: Farmhouse on Commercial Ag Property Norman Paperman
Norman Paperman Offline
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I figured as much. It would be exempt if it was a detached structure on a residential property, correct?

Thanks for the validation, Randy.
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Maybe you just wanna fly the plane yourself. Well good luck pressing take off, then auto pilot, then land.


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#2214805 - 06/03/19 08:04 PM Re: Farmhouse on Commercial Ag Property Norman Paperman
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
It would be exempt if it was a detached structure on a residential property, correct?

You said it was a residential structure so no it would not be exempt if located on residential property.

If it was a non-residential detached structure and used for personal or family purposes then that structure would be exempt.
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#2214806 - 06/03/19 08:06 PM Re: Farmhouse on Commercial Ag Property Norman Paperman
rlcarey Offline
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rlcarey
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Galveston, TX
Only if the detached building was being used for family, personal or household purposes and did not contain any living quarters.
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