Purchase/Home With Renovations

Answered by:

Question:

Would a purchase/home renovation draw down line for 6 months then convert to a 240 month term be disclosed the same as a construction to permanent loan since renovations are being made and not construction from the ground up?

Answer:

Answer by Randy Carey: What would be disclosed? We don't have enough information. Is this a one time or two time close, etc.?

Answer:

Answer by Richard Insley:

As Randy indicates, creditor choices can result in more than one answer to this question. After these choices have been made, Appendix D Official Interpretation #1 authorizes the use of the math and procedures in Appendix D "in multiple-advance transactions other than construction loans when the amounts or timing of advances is unknown at consummation."