Business Purpose Cash Out Letter
Borrower declaration outlining commercial deployment of net proceeds on business-purpose cash-out refinance transactions.
Packaging & Submission Instructions
Originator Guidance: Complete and execute this form prior to upload with the initial loan submission package in the Corva Wholesale Broker Portal or Fannie Mae Desktop Originator.
Ensure all borrower signatures, entity documentation (for LLC or corporate borrowers), and applicable disclosures match the 1003 loan application. For assistance packaging this document, contact the Corva Broker Operations Desk at [email protected].
Form Description & Requirements
Purpose of Cash-Out Verification
On all business-purpose cash-out refinance transactions, the Corva Business Purpose Cash Out Letter must be completed in the borrower’s own words, detailing the specific commercial and business deployment of the net loan proceeds. This letter provides essential compliance evidence ensuring the transaction qualifies for federal and state business-purpose regulatory exemptions.
Acceptable Uses of Commercial Cash-Out Proceeds
- Acquisition of additional commercial or residential investment real estate.
- Capital improvements, renovations, or expansion of investment properties.
- Operating capital for a legitimate commercial business entity owned by the borrower.
- Payoff of commercial debt, business lines of credit, or partnership equity buyouts.
Note: Proceeds may not be utilized for personal consumer debts, personal vehicle purchases, or personal household expenses.