Disclosures on HELOC to Purchase Home

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Question:

What required disclosures to you need on a HELOC ifthe main purpose of the loan is to purchase the borrowers' house? They are only asking for $40,000.00? Do you need an early truth in lending disclosure or early good faith estimate and any other early disclosures?

Answer:

If you provide a HELOC to fund the purchase of the home, you don't need to provide a PTIL or any RESPA documents. You would need the HELOC disclosures (booklet and program disclosure) and flood determination, appraisal disclosure and the Right of Rescission (to cover future advances).

First published on BankersOnline.com 01/19/04