A New York loan in 2026 is secured by a rental property the borrower has never lived in. If the property will not be the borrower principal dwelling, does the loan meet the home-loan definition in Banking Law section 6-l?
Correct Answer
A) Not a home loan: it must be the borrower principal dwelling
Home loan requires among other things that the property is or will be occupied by the borrower as the borrower principal dwelling, that the borrower is a natural person, that the debt is primarily for personal, family or household purposes, and that the property is located in this state. Other choices: occupancy by the borrower is the missing element here; other holdings are irrelevant; and the unit count is not what decides it. Source: N.Y. Banking Law § 6-l(1)(e)(iv)
Why This Is the Correct Answer
Home loan requires among other things that the property is or will be occupied by the borrower as the borrower principal dwelling, that the borrower is a natural person, that the debt is primarily for personal, family or household purposes, and that the property is located in this state. Other choices: occupancy by the borrower is the missing element here; other holdings are irrelevant; and the unit count is not what decides it. Source: N.Y. Banking Law § 6-l(1)(e)(iv)
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