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#2203186 - 01/16/19 08:23 PM ATR and 18 to 24 Month Construction to Perm Loans
Banker75 Offline
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Joined: Oct 2015
Posts: 93
As this has been previously discussed, I need clarification in regard to this topic. We are looking at implementing construction to permanent financing in one transaction as we have not had this before. When considering the consumer's ATR, will the bank need to verify this after then initial 12 months and then again at the permanent financing stage? My apologies as I'm trying to clarify this for management. Any help is appreciated

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#2203188 - 01/16/19 08:32 PM Re: ATR and 18 to 24 Month Construction to Perm Loans Banker75
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
It has to be verified before closing. There's no explicit requirement for re-visiting the question later in the loan term.
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#2203195 - 01/16/19 09:07 PM Re: ATR and 18 to 24 Month Construction to Perm Loans Banker75
Banker75 Offline
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Joined: Oct 2015
Posts: 93
Perfect! Thank you!

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#2203302 - 01/17/19 06:04 PM Re: ATR and 18 to 24 Month Construction to Perm Loans Banker75
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
will the bank need to verify this after then initial 12 months and then again at the permanent financing stage?

You topic refers to 18-24 months Const/Perm loans. I'm not sure about your reference to the initial 12 months. If the construction phase is greater than 12 months then the construction phase is not exempt from the ATR requirements.
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The opinions expressed are mine and they are not to be taken as legal advice.

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