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#2248055 - 01/22/21 10:10 PM Commercial LOC Secured by 3 Rental Properties
MB Guy Offline
10K Club
Joined: May 2004
Posts: 10,124
Way, way south.
I'm reviewing a commercial line of credit that is secured by 3 SFR properties, and the credit request states that the purpose is to refinance an existing HELOC and establish a business purpose line of credit secured by SREM on personal residence. The commercial LOC will be used to maintain and repair three rental properties.

My question is, what are the requirements for appraisals related to this loan? They appear to have just performed evaluations on the personal residence that isn't one of the rental properties. Is that acceptable? This is just a strangely structured loan. Thanks.
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Lending Compliance
#2248056 - 01/22/21 10:15 PM Re: Commercial LOC Secured by 3 Rental Properties MB Guy
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,225
Galveston, TX
What is a SREM? How much is the line for?
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#2248108 - 01/25/21 07:09 PM Re: Commercial LOC Secured by 3 Rental Properties MB Guy
MB Guy Offline
10K Club
Joined: May 2004
Posts: 10,124
Way, way south.
I believe it's just an equity mortgage on the personal residence.
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