Skip to content
BOL Conferences
Thread Options
#2258919 - 08/30/21 03:55 PM TRID Purpose Hierarchy on construction loan
Bankerlori Offline
Junior Member
Joined: Sep 2015
Posts: 35
If a construction-perm loan is for completion of the initial construction on a residential dwelling should the TRID purpose on the LE/CD be construction or home equity?

The property is owned free and clear and borrower used own funds to purchase the property and construct the shell. Loan is to complete interior construction--home has not yet been occupied. All proceeds are for construction hold-backs and loan costs.

We permit self-builds and the construction already started issues/risks were appropriately addressed to the satisfaction of both the bank and the title company.

Return to Top
Lending Compliance
#2258928 - 08/30/21 04:26 PM Re: TRID Purpose Hierarchy on construction loan Bankerlori
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
Depends if you consider this loan as part of the initial construction, If you do, then it is construction, If you do not, then it is home equity.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top

Moderator:  Andy_Z