We have a request for funds to finish the construction of a primary dwelling. Construction of the home was originally started by the customer with their own money. We are not paying off anyone and they owned the land free and clear. Would the purpose on the LE be construction or home equity?

Home equity.

Good luck in avoiding any intervening mechanic's liens

Randy, not disagreeing, but can you tell me why it wouldn't be labelled 'construction'? Thanks.

Well, I suppose you could. I think it depends on how far along the project might be:

Accordingly, the Bureau is revising comment 37(a)(9)-1.iii to refer to
initial construction and to clarify that this disclosure does not apply to renovations. The Bureau
is further revising § 1026.37(a)(9)(iii) to state that a loan is for “Construction” only if it will be
used to finance the initial construction of a dwelling and is not for one of the purposes described
in § 1026.37(a)(9)(i) or (ii), for the reasons discussed in the section-by-section analysis of
§ 1026.37(a)(9)(ii). Accordingly, credit obtained for the purpose of renovation shall be disclosed
as a refinance or home equity loan, as applicable.

Ok, thanks.