Applicant resides in a mobile home. He applies for a loan to buy land and an existing mobile home. He will remobile the mobile home from the land that's being purchased & permanently affixing his current mobile home to the land.

1. Do I report this as a purchase since he's purchasing a home (but it will be removed from the land) and secured by his existing mobile home?
Or ,

2. Do I report this as a refinance since he owes money on this exisitng mobile home & will be paying off that debt with some of the loan proceeds?

I know that purchase trumps refinance but I'm struggling if this is a purchase?

Thanks.

I would say purchase. My reason is purely because of the definition; a loan that is both secured by and made for the purpose of purchasing a dwelling. This includes a loan secured by one dwelling that is used to purchase another dwelling.

Isn't HMDA fun

What's he going to do with the mobile home he is purchasing and moving? If it's going to be destroyed or used as something other than a dwelling, i would report it as a refinance. If he is somehow going to continue using it as a dwelling, i'd report it as a purchase.

I agree that it depends upon the planned use of the mobile being purchased.

I'll follow-up with the loan officer for more detials.

Thanks for your help.