We have a loan to a builder that will refinance the construction costs of a model home. Basically it will be used as a sample of their work for clients. The loan officer notes that the home will be sold within 3 years as a residence.

Would the model home currently qualify as a dwelling? Do we use the stated eventual purpose for the model home (sell as a SFR) to qualify it as a dwelling?

Any input would be great.

I think I would log it as a dwelling. It is a dwelling and not something else. I think if they were going to use it as an office for 3 years and then sell it you could consider it not a dwelling, but if its going to sit there and if more a dwelling than something else then I would log it. Just my thinking.