We are doing a loan for a church to purchase a church and the parsonage. The pastor will be living in the parsonage. Is this transaction HMDA reportable?

It's a dwelling. Not transitory like a nursing home. So I would say, yes, it's reportable.

On the other hand, there's the mixed-use property rule that says you use the primary use of the property to determine if it's HMDA reportable. You can use "...any reasonable standard to determine the primary use of the property." (GIR D-5) IMO, pastor lives there more than the church will be used. However, you could go by square footage.

Just pick your standard and document it.

However, you can only use the the mixed-use rule if they are just buying one building to house both the church and the parsonage. If they are separate buildings your transaction is reportable (assuming its secured by the dwelling and not temporary financing).