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#2211336 - 04/17/19 02:32 PM Construction Loan - Best Option?
mdog76 Offline
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Joined: Jan 2007
Posts: 645
We have a loan request that is kind of an odd situation. Customers have bought a house and have the 1st through another institution. They want to borrow more funds to add on to the house and have come to us for a 2nd mortgage. They are going to take the funds in draws, not all at once. Can this be considered a construction loan with them living in the house or is there a better option?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2211340 - 04/17/19 02:53 PM Re: Construction Loan - Best Option? mdog76
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,637
Galveston, TX
For what - TRID purpose? It would be Home Equity. Construction is only initial construction.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2211351 - 04/17/19 03:20 PM Re: Construction Loan - Best Option? mdog76
mdog76 Offline
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Joined: Jan 2007
Posts: 645
Yes this is a TRID purpose loan. We changed it to Home Equity, but can the loan still be structured as a construction loan? Its one year term with draws. Just don't want us to get tripped up on anything.

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#2211361 - 04/17/19 03:43 PM Re: Construction Loan - Best Option? mdog76
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,637
Galveston, TX
Loan structure is a lender decision and related to State law. TRID just tells you what and how you need to disclose a loan, not what you can or cannot do.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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