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#2020632 - 06/16/15 02:19 PM Funds to Refi/Demolish/Build
Love Cruising Offline
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Joined: Mar 2009
Posts: 248
We are doing a loan to refi an existing mortgage ($100,000)and provide funds for construction of a new 1-4 (1,000,000). We are refinancing the current property that is being demolish and funding the construction of a new 1-4. The current property is being demolish and new construction will begin. Since we are paying off the current property that is being demolish, would this be considered a reportable HMDA transaction? or because the main portion of the funds $900,000 being used for new construction and construction loans are not reported, we would not need to report this loan.

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#2020642 - 06/16/15 02:49 PM Re: Funds to Refi/Demolish/Build Love Cruising
raitchjay Online
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Posts: 8,566
OK
What are the repayment terms? Is this loan temporary financing, or is the perm phase built in?
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#2020652 - 06/16/15 03:05 PM Re: Funds to Refi/Demolish/Build Love Cruising
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
You have a construction loan due to a portion of the proceeds being used to construct a dwelling but it is not clear if you have a construction only or a construction/perm loan.

If construction only the loan would not be reportable.

If a const/perm it's your option to report at the beginning of the construction phase or the permanent phase.
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#2020672 - 06/16/15 03:37 PM Re: Funds to Refi/Demolish/Build Love Cruising
Love Cruising Offline
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Joined: Mar 2009
Posts: 248
We are only doing the construction portion.

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#2020673 - 06/16/15 03:38 PM Re: Funds to Refi/Demolish/Build Love Cruising
raitchjay Online
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Joined: Oct 2009
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OK
Not reportable then.
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