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#337577 - 03/23/05 06:02 PM Refi lot in construction--RESPA?

If a lot is refinanced (within 2 years from purchase) by the initial draw from a construction loan, does RESPA apply? I know the two year rule applies if loan proceeds are used for the constuction of the dwelling, but the reg is vague as to proceeds of which loan--the original obligation or any loan proceeds used in connection?

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#337578 - 03/23/05 06:09 PM Re: Refi lot in construction--RESPA?
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,958
Bloomington, IN
No, if you are refinancing the lot there is no transfer to the first user in your transaction. (I am assuming this is a construction loan only where you will not be doing the permanent.)
The opinions expressed are mine and they are not to be taken as legal advice.

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