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#2179946 - 05/29/18 12:25 PM Construction Loan w/ Possible Perm
Joe Maguire Offline
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Joined: May 2018
Posts: 2
We have a construction loan to build a 120 apartment units however the borrower has two options after the construction period - 1) two 1 year extension options with I/O payments. or 2) a five year mini-perm with principal payments.

The length of the loan prior to the two options will be 48 months. I cannot find anything in the regulation referencing possible permanent financing, which is leading me to determine if it is HMDA reportable or not.

Has anyone come across a similar situation?

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#2180220 - 05/30/18 07:00 PM Re: Construction Loan w/ Possible Perm Joe Maguire
raitchjay Offline
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Joined: Oct 2009
Posts: 8,593
The question as i see it is simply whether your loan is temporary or not--i'd be inclined to say yes, but wow, 48 months is a long time to be 'temporary'.

The two different 'perm' scenarios don't really factor to me--if option 1 is the choice, then wouldn't option 2 have to replace it at some point? You aren't going to rock along on interest only payments forever.
I'm fixin' to fix that.

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