I am looking at a withdrawn HELOC and wondering on how to report the purposes of the loan. In the file, it is documented that the applicants are going to use the funds to purchase land that is surrounding their house/property. The file was not specific on the land to be purchased (usage or size) so I don't really have a way to exempt reporting this. I was going to report "other" but I was also thinking this could be an "improvement" if the land is going to be added to the current property. What do you guys think?

Thanks in advance

Not sure how it meets the definition of home improvement. The purpose has nothing to do with a dwelling.

(i) Home improvement loan means a closed-end mortgage loan or an open-end line of credit that is for the purpose, in whole or in part, of repairing, rehabilitating, remodeling, or improving a dwelling or the real property on which the dwelling is located.

I was starting to see it as an improvement because the applicants increase their land size (where the dwelling is located) by purchasing additional property next door - improving/remodeling the property in which the dwelling is located. Or am not even in the ball park on this one?

Thanks

They are adding land. They are not improving the dwelling or the land the dwelling is located on.

I think your other category is the correct way to report it.

I agree with "Other," unless you have knowledge that funds will be used to acquire or construct a dwelling on the additional land in the next 2 years.

Thanks for the clarification - truly appreciated.