Purchase of Commercial Property

Posted By: Bec

Purchase of Commercial Property - 10/07/13 07:53 PM

Customer is using a commercial, mixed use primarily commercial and second home properties to secure a purchase of a commercial pizza kitchen. HMDA Reportable? I am getting hung up on the second home being used as security. My brain is mushy today. Thank you!
Posted By: RR Becca

Re: Purchase of Commercial Property - 10/07/13 08:00 PM

No, not if none of your proceeds are being used for the purchase, improvement, or refinancing (paying off of existing financing) on a residential property.
Posted By: Bec

Re: Purchase of Commercial Property - 10/07/13 08:09 PM

Thank you so much.
Posted By: Rendar, CRCM

Re: Purchase of Commercial Property - 10/08/13 02:36 PM

Agreed, unless you are refinancing an existing loan secured by the second home to add funds for the purchase...then you would have a reportable refinance. As long as this is a new loan it would not be reportable.