Curious...more info from who/where?

The compliance consulting firm.

So, here is another spin on this scenario. We have a borrower who sold their home and used the proceeds to begin construction on a new home. The home is 75% complete and they decided to borrow the remaining $250,000 to finish the construction. Would this loan still be considered a purchase, since it was not finished; or would it be considered a home improvement because a "home" already exists?

I would code as a purchase. Until a home is completely constructed, IMO a loan to finish it up still meets the definition of construction, and a HMDA purchase, assuming it isn't temporary.

I agree that if the home is being constructed, it's a construction loan. If they bought a home and now want to add to it it could be HI but you clearly indicate they were constructing it. Whether they paid the first $1 or $100K dollars and they want to borrow the rest the issue is the same, it's to finish construction in this case. Just be sure you get around any existing liens from those building it.

A little late to the game on this thread but would you consider a 12 month interest only, closed end line of credit loan to purchase and remodel the owners new primary residence a "temporary financing" or "interim construction" loan either one? Also, the loan will be replaced with permanent financing at the end so would we wait and report the perm financing as refinance?

he loan will be replaced with permanent financing at the end

This would qualify it as temporary financing.