Business as Borrower

[Sapphire4214]

Just received a standard 1004 new construction. AMC has borrower as the business LLC/builder. I asked them for the owners name for the report and they responded with “put just the business”. Which would turn it into a commercial form. What is my recourse? FNMA purposely has made the 1004 for a person not business. This is not an income producing property.

 

[shrubberyvaluation]

Just received a standard 1004 new construction. AMC has borrower as the business LLC/builder. I asked them for the owners name for the report and they responded with “put just the business”. Which would turn it into a commercial form. What is my recourse? FNMA purposely has made the 1004 for a person not business. This is not an income producing property.

Why can't you just put it as the borrower? Plenty of people have LLCs.

 

[Terrel L. Shields]

Which would turn it into a commercial form.

Why? If it is a house, it is a builder who is borrowing money to build. And the builder is operating under an LLC. And ask if it is even FNMA from the client. Not that it matters. It's their problem, not yours.

 

[Tom4value]

You are appraising a property, not the borrower. Some lenders will lend with an LLC as the borrower with a conventional loan. Others my not but that is a lender call. You are appraising the property.

 

[sputnam]

Just received a standard 1004 new construction. AMC has borrower as the business LLC/builder. I asked them for the owners name for the report and they responded with “put just the business”. Which would turn it into a commercial form. What is my recourse? FNMA purposely has made the 1004 for a person not business. This is not an income producing property.

The 1004 asks for the Owner of Public Record... and that's what you enter in that field. If you don't know how to determine through your own research, you need to ask someone to teach you.

And... No... it does not turn it into a commercial form.

 

[Tom D]

Typically, a LLC loan is commercial financing. But that only refers to the funding type. The property is still residential, of which the 1004 appraisal is for that property and it's use, not the loan.

 

[J Grant]

The name of a borrower does not turn it into a commercial form. Individuals can buy RE or people can buy under the name of an LLC or corporation or partnership

However, since in OP's case, the LLC as buyer is also a builder, perhaps check if it is an arms-length sale with any relationship between buyer and seller.