We have consumer purpose (to pay personal bills)loan secured by the borrower's principal residence. The is a closed end loan with a term of 12 months interest only. The loan will be repaid at the end of the 12 months from the sell of commercial property. For ATR purposes, is this loan considered temporary financing or a short term loan? Will this loan have to meet the ATR requirements? If so, will it have to be underwritten for ATR purposes as a monthly P&I loan?

There are many threads that discuss this topic in detail. You should reserve the "temporary" part of this question until you research other threads on this topic. Does not sound like it will meet the "temporary" criteria. See also the guide in this forum.

Thank you!