We are considering a 1 step construction product where the bank approves both construction phase and long term financing.. if the dwelling will be a primary residence after completion does section 35 and HPML rules apply? I know the exemption for construction & temporary.... but this scenario seems to take it out of the exemption.

Am I correct?

"1 step construction product where the bank approves both construction phase and long term financing"

You need to explain this product a little bit more. Are you talking about a constuction/perm note. If so, both would apply as it is not temporary financing.

yes, one note and one combined TIL disclosure.

Would it make a difference if we did a separate disclosure for construction phase & then long term? The key is we are committting to both up front, construction phase & long term financing.

You would have to make two separate loans. The construction loan would be exempt under 226.35(a)(3). The permanent loan when made would be subject to HPML.

Thank you!