Looking for help as to why we are receiving an error for entering NA for income on a business purpose loan?
We have a Home Secured Business Line of Credit that is secured with a residential property (no liens/free and clear). The purpose of the loan is for the future purchase of an investment property And the renovation of existing investment properties.
It appears to be a reportable transaction Based on Comment 3(c)(10)-3.i "an open-end line of credit to purchase or to improve a multifamily dwelling or a single-family investment property"
Comment 4(a)(3)-3 appears to explain that a multi-purpose loan can be reported as a "home purchase". It states "If a covered loan is a home purchase loan as well as a home improvement loan, a refinancing, or a cash-out refinancing, an institution complies with § 1003.4(a)(3) by reporting the loan as a home purchase loan.
However, it appears that because of how we are reporting, we are getting an Error for entering NA for income that says "income generally should not be NA"
Any guidance on what I'm misunderstanding is greatly appreciated!