HOEPA applies only to which type of property?

HOEPA applies only to which type of property?

• A. Primary residences
• B. Second homes
• C. Investment properties
• D. Any property type

Answer: (A)

HOEPA’s protections apply only to mortgages that are high-cost and secured by the borrower’s principal dwelling—the home the borrower uses as their primary residence. Because the loan is tied to the borrower's main residence, this rule excludes second homes and investment properties from HOEPA coverage. If a loan on the primary residence meets HOEPA’s high-cost thresholds, it triggers extra disclosures and restrictions; loans on a vacation home or rental property do not fall under HOEPA, even if other rules might apply. This is why the primary residence is the correct choice.

HOEPA’s protections apply only to mortgages that are high-cost and secured by the borrower’s principal dwelling—the home the borrower uses as their primary residence. Because the loan is tied to the borrower's main residence, this rule excludes second homes and investment properties from HOEPA coverage. If a loan on the primary residence meets HOEPA’s high-cost thresholds, it triggers extra disclosures and restrictions; loans on a vacation home or rental property do not fall under HOEPA, even if other rules might apply. This is why the primary residence is the correct choice.