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#2290079 - 10/24/23 10:16 PM Occupancy for a Doctor professional corp.
Lisa S. Offline
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Joined: Jul 2023
Posts: 18
We have a loan to a Doctor MD that does all of her business transactions through a PC (professional corporation). We are refinancing a business purpose loan for her for HMDA. The loan is only in the professional corporation name (Doctor name MD PC). Title policy shows her and her husband as owners of the property and not the PC. Would we still consider the occupancy as her primary residence as she could live there or do we need to use investment since only the PC/professional corporation is a borrower? I know with the change in 2018 the occupancy is based on the borrower and not the owner of the property. In 2018 we reported as principal residence and did not report income. Just trying to get other opinions and to see if anyone else has had a loan like this. Did we report the loan correctly in 2018 by reporting no income and as a principal residence? Thanks

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#2290090 - 10/25/23 03:10 PM Re: Occupancy for a Doctor professional corp. Lisa S.
Dan Persfull Online
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Dan Persfull
Joined: Aug 2002
Posts: 47,481
Bloomington, IN
(6) Whether the property identified in paragraph (a)(9) of this section is or will be used by the applicant or borrower as a principal residence, as a second residence, or as an investment property.

4. Investment properties. Section 1003.4(a)(6) requires a financial institution to identify whether the property to which the covered loan or application relates is or will be used as an investment property. For purposes of ยง 1003.4(a)(6), a property is an investment property if the borrower does not, or the applicant will not, occupy the property. . . . . . . .



Since the borrower is the PC you report it as an investment property.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2290114 - 10/25/23 07:50 PM Re: Occupancy for a Doctor professional corp. Lisa S.
Lisa S. Offline
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Joined: Jul 2023
Posts: 18
Ok thanks Dan.

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