I know this has been beat to death 500 times but I unfortunately have to make it 501 so I know for sure what we need to do.

If we receive an application for a $300,000 construction loan for a primary residence (without a takeout from another lender), do we have to:

1. Give early disclosures for the construction loan?
2. Give early disclosures for a permanent loan at the same time (even though they didn't apply for the permanent loan and we wouldn't know what term, etc to disclose for)?

I think from what I have read is that the answers are yes to both. One last question:

3. Would there be any instances for a construction loan for a primary residence where you wouldn't give early disclosures?

I had previously thought the "may be converted" language in RESPA meant construction-perm loans and not loans where there was two separate loans, applications and closings. The gurus are all saying the "may be converted" means not only this but if we even think (basically) we "might" do the final loan. You would think this could be written better in the regulation to be more clear.

1 - yes
2 - yes
3 - If you have a formal takeout letter from a different lender for the permanent financing, you would only need to provide early disclosures for the construction phase to the consumer.

1. yes, because even if they already own their lot, you may end up doing the perm.
2. yes

3. Yes. They already own their lot and they hand you a takeout letter for the perm.

In that case, no earlies are done regarding the construction or the perm phase.