We have a customer that would like to purchase a large parcel of land. Lease out the land and have those leasers build houses on it. The mortgage for the leasers would be executed by the bank but the customer would take full recourse. Has anyone ever performed these kinds of loans and if so, where do you start with regulations. For instance, if we are extending construction to permanent one step loans, it would not be covered by RESPA because they don't own the dirt right?
Any insight will be appreciated.