I agree with raitchjay that this would be reported as a purchase. As previously said, there is a hierarchy, or "waterfall" that must be used when determining the purpose on multiple purpose loans. Said another way, a loan/application can have multiple purposes, but you only report one purpose on your HMDA LAR in accordance with the established hierarchy.
The way it works is that a purchase is king, meaning it always takes precedence over other purposes. Next in line is a refinance which includes both a refinancing (satisfying and replacing an existing obligation) and a cash-out refinance (which includes money back according to specifics found in the commentary). After a refinancing comes a home improvement loan followed by "other" purpose loans.
To explain this, the following multiple purpose scenarios explain the hierarchy and which purposes must be reported on the LAR:
-Home Purchase Loan and Home Improvement Loan =
Home Purchase Loan-Home Purchase Loan and Refinancing =
Home Purchase Loan-Home Purchase Loan and cash-out Refinancing =
Home Purchase Loan-Home Purchase Loan and other =
Home Purchase Loan-Home Improvement Loan and Refinancing =
Refinancing-Home Improvement Loan and cash-out Refinancing =
Cash-out Refinancing-Refinancing and other =
Refinancing-Cash-out Refinancing and other =
Cash-out Refinancing-Home Improvement Loan and other =
Home Improvement LoanIf you are interested in a bit deeper explanation on the hierarchy, I recorded about an 8 minute a video explaining this in detail here:
https://www.compliancecohort.com/blog/hmda-loan-purpose-hierarchy Hope that helps.