loan secured by rental property but proc to son...

Posted By: pjs

loan secured by rental property but proc to son... - 08/31/15 04:35 PM

A loan secured by the borrower's rental property but the proceeds will be given to his son to buy a home- that would be consumer purpose and not commercial wouldn't it? Thanks
Posted By: Jade'sFire

Re: loan secured by rental property but proc to son... - 08/31/15 04:37 PM

Assuming the son is purchasing a home for his personal use (not purchasing a rental property) then the loan's purpose is consumer.
Posted By: danaken

Re: loan secured by rental property but proc to son... - 08/31/15 04:42 PM

I agree.
Posted By: pjs

Re: loan secured by rental property but proc to son... - 08/31/15 04:55 PM

Thank you both.
Posted By: Richard Insley

Re: loan secured by rental property but proc to son... - 08/31/15 05:56 PM

The rental property exemptions hinge on the loan purpose, not the nature of the collateral. In fact, there doesn't even have to be collateral for these exemptions to be available!
Posted By: Kathleen O. Blanchard

Re: loan secured by rental property but proc to son... - 08/31/15 08:17 PM

I presented a webinar last month that delved into those types of situations.

Link to webinar in store
Posted By: pjs

Re: loan secured by rental property but proc to son... - 09/01/15 11:23 AM

My brain was so fried yesterday I couldn't even think. Thanks for the link. I'm going to see about getting it.