Business Purpose Disclosure

What Is a Business-Purpose Loan?

A business-purpose loan is financing used primarily for business, commercial, agricultural, or investment purposes — not for personal, family, or household use. Under the federal Truth in Lending Act (TILA) and Regulation Z (12 CFR § 1026.3(a)), business-purpose loans are exempt from most consumer-mortgage regulations.

Examples of qualifying business-purpose transactions include:

• Acquiring a rental property to generate rental income
• Refinancing an existing non-owner-occupied rental property
• Cash-out refinancing to fund renovations on an investment property
• Bridge financing between buying and selling investment properties
• New construction of an investment or commercial property
• Fix-and-flip financing for properties to be sold at a profit
• Portfolio consolidation loans across multiple rental properties

What We Do Not Broker

Loan Daddy LLC does not broker consumer-purpose residential mortgages under this Site, including:

• Loans secured by a borrower's primary residence for personal use
• Loans secured by a borrower's second home for personal use
• Loans where the proceeds are used primarily for personal, family, or household purposes

Your Representation

By submitting any information on this Site, you represent and confirm that:

• Your loan request is for a business, commercial, or investment purpose
• The subject property is or will be non-owner-occupied
• You are a legal entity (LLC, corporation, trust, partnership) or an individual investor acting for business purposes
• You understand that consumer-mortgage protections generally do not apply to business-purpose transactions

Why This Matters

Business-purpose loans are underwritten, priced, and documented differently from consumer mortgages. They typically focus on property cash flow (DSCR), asset value, and business or investor credit rather than personal income verification. They generally do not require TILA-RESPA Integrated Disclosures (TRID), Loan Estimates (LE), or Closing Disclosures (CD) in consumer form — though lenders may provide equivalent business-purpose disclosures.

All Loans Subject to Underwriting

All loans remain subject to full underwriting and property qualification by the wholesale lender, including review of rental income, property condition, appraisal, title, borrower experience, and entity structure. Nothing on this Site constitutes a loan approval, commitment, or rate lock. See our Disclosures for full details.