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#2136882 - 07/04/17 04:38 PM Loan to construct multifamily-secured with 2nd mor
Bec Offline
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Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
Loan is for the purpose of constructing a multifamily property. It is set up as a construction to permanent situation. Interest only payments for one year and then fixed for the rest of the term.
It is secured by a second mortgage on a different multifamily. What would be the purpose of this loan?
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#2136883 - 07/04/17 04:41 PM Re: Loan to construct multifamily-secured with 2nd mor Bec
rlcarey Offline
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rlcarey
Joined: Jul 2001
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Galveston, TX
The purpose of the loan is construction - so purchase for HMDA.
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#2136905 - 07/05/17 02:30 PM Re: Loan to construct multifamily-secured with 2nd mor Bec
David Dickinson Offline
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David Dickinson
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Central City, NE
Agree.
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#2137002 - 07/05/17 09:05 PM Re: Loan to construct multifamily-secured with 2nd mor Bec
Bec Offline
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Bec
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Posts: 1,114
The Great White North
What if the borrowers already owned the land that the cabin is being built upon?
Last edited by Bec; 07/05/17 10:12 PM.
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#2139334 - 07/25/17 03:03 AM Re: Loan to construct multifamily-secured with 2nd mor Bec
David Dickinson Offline
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David Dickinson
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Central City, NE
Owning the land prior to the construction loan is not a factor. HMDA is all about dwellings, not land. The construction of the dwelling is the "purchase" for HMDA, assuming it's not temporary financing. Think of it as purchasing the materials needed to construct the dwelling.
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