We have an application for a loan where the customer wants to borrow money to tear down his entire house and rebuild from the foundation up. Would this be considered a Home Improvement home equity loan or should we classify this as a construction loan? As a comparison, while no disaster occurred with this loan, what about when homes are totally destroyed through fire or tornadoes--are the loans made contruction loans? I would think it would be construction which then would have draws and inspections, etc. I know general rules say you can't build a house more than once, but in this case that is exactly what they are doing. Asking not just for HMDA purposes but for classification purposes and risk.