Borrower is refinancing existing loan, PLUS cash out for reimbursement for costs of improvements. Home Improvement or Refinance?

I am leaning towards Home Improvement.

Refinance. None of the loan proceeds are being used for HI.

We have a similar situation. Commercial multi-family was purchased and not reported because it was temporary (secured by building). Now we are doing what was supposed to be HI but turns out a complete demo so now classified as a construction loan (still secured by building until dozers get to it). Will be interest only then converting to P&I. Is this a refinance? I am getting hung up on the fact it was never reported.

Thank you, Dan!

Sounds like 2 phase financing with a temporary phase (interest only) followed by the construction phase. That would be a purchase for HMDA, not a refinance.

I have two different loans here. One was for the purchase that was temporary. Now I have the second loan that is two-phase. So my hang up is that it has never been reported and I am confused if it should be a purchase or refinance. I was not sure if I explained that well enough in the first email. Thanks David!