The GoDocs system can be used for loans that will be used solely for business, commercial investment, or similar purposes, and that no portion of it will be used for agricultural, personal, family, or household purposes. Personal/consumer use loans require different compliance parameters.
ApartmentDocs (multi-family, assisted living, mobile home park) are meant for true multi-family properties with 5+ units, which does not require the same level of business purpose and/or non-owner occupied certifications.
If the land is zoned for 1-4 units residential then GoDocs recommends using our InvestorDocs (under 5 residential units or single family) platform. Additionally, please note that the Business Purposes of Loan Certification is an InvestorDocs vs ApartmentDocs/CommercialDocs item and is not related to the number of addresses listed on the property page.
If the land is zoned for generic commercial (office, mixed-use, retail, self-storage, unknown) then CommericalDocs. If it is land with a purpose, like to be a hotel, Lender can enter it under the specific property type.(Land to build a home to sell for a profit, or land to hold to rent or flip can all be business purposes)
Laws and disclosures that apply to Business Purpose loans:
While certain federal laws such as the Equal Credit Opportunity Act and the Federal Housing Act are applicable to both residential and commercial loans, of significant importance is which federal laws are not applicable to commercial business purpose loans.
Specifically, business purpose loans are exempt from Regulation Z (which implements the Federal Truth in Lending Act "TILA"). In addition, business purpose loans are exempt from Regulation X (which implements the Real Estate Settlement Procedures Act "RESPA"). To ensure the loan is considered commercial (business purpose) we also include language that the loan will be used solely for business, commercial investment, or similar purposes, and that no portion of it will be used for agricultural, personal, family, or household purposes. Lastly, we include a Business Purpose of Loan Certification.
Of importance, you are exempt from Residential laws and fall under commercial lending laws as long as the proper language and disclosure are included in the loan documents, as outlined above.