Borrower already owns the dwelling free and clear. They will be using a construction/perm loan to make substantial improvements to the property.
In the past we were always using purchase anytime we had a construction permanent loan since they were "purchasing" the materials needed. I cannot find that example anywhere now.

Would this be a purchase or home improvement loan?

What are they purchasing?

In the past we were using purchase anytime we had a construction permanent loan since they were "purchasing" the materials needed. I cannot find that example anywhere now.

They already own the home, so it's not a purchase. It's not a construction loan (which is a purchase under HMDA) because you can only construct a home once. After that, all additions are a home improvement loan.

Thank you!