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#1740509 - 09/13/12 01:27 PM Vacant Land loan and RESPA
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
I have a situation where a borrower purchased vacant land and intends to construct a primary residence on the land within 24 months.

RESPA reads: "If the proceeds will be used to locate
a manufactured home or construct a structure within two
years from the date of settlement, the loan is covered."

So, if the borrower is not necessarily using proceeds from the vacant land loan purchase to "start" the construction and rather, uses all of the proceeds to acquire the land, then it is NOT covered?

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RESPA
#1740514 - 09/13/12 01:31 PM Re: Vacant Land loan and RESPA Many Hats
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,416
Bloomington, IN
Correct.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1740515 - 09/13/12 01:31 PM Re: Vacant Land loan and RESPA Many Hats
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,215
Galveston, TX
Correct. It still would be covered under Regulation Z however.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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