I agree with Dan unless the loan purpose is to construct a spec house. Below is from the commentary of Regulation C.
3. Construction and permanent financing. A home purchase loan includes both a combined construction/permanent loan or line of credit, and the separate permanent financing that replaces a construction-only loan or line of credit for the same borrower at a later time. A home purchase loan does not include a construction-only loan or line of credit that is designed to be replaced by separate permanent financing extended by any financial institution to the same borrower at a later time or that is extended to a person exclusively to construct a dwelling for sale, which are excluded from Regulation C as temporary financing under § 1003.3(c)(3). Comments 3(c)(3)-1 and -2 provide additional details about transactions that are excluded as temporary financing.
Last edited by NSF, CRCM; 01/25/18 06:49 PM.
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It is better to act cautiously beforehand than to suffer afterward.
The answers I give are my opinions. Not legal advice.