If there was a loan to construct a home, payoff 2nd mortgage LOC on current house, and payoff land contract, what we you report this under? I am pretty sure it would be a refinance (secured by home on 2nd and new loan). Do you report the whole amount of the loan, or just the part for the payoff of 2nd mortgage? Any guidance would be great.

I figured I was wrong somehow. I guess I thought a loan to construct a home was a construction, and therefore not reportable. I know some of it has to do with if it will be replaced with other permanent financing upon completion of the construction. So I should report the whole amount as a home purchase loan? Thanks so much for you help.

Wait a moment. I'm still not sure if I understand exactly what's happening here. As I understand your statement you made a permanent loan to construct a dwelling, refi a 2nd mtg and pay off a land contract. If that assumption is correct then I will stand by my answer.

I will check with the lender, but as far as I can tell, the loan would have been permanent (it was turned down, but I didn't want to mention because I thought it didn't matter). Thanks for your help. I will double check with lender and report this as a home purchase.

Another question, this is separate from above. Does a purchase trump a refinance or home improvement even if the part of the loan money for the refinance or home improvement is more than the part of the loan money for the home purchase?

Code 1 = home purchase Code 2 = Home Improvement and Code 3 = Refinancing.

If you have a multiple purpose loan then follow 1, 2 and 3. Which ever comes first is what you report. The dollar amount does not play a factor. So you're correct, a home purchase trumps both home improvement and a refinancing and home improvement trumps a refinancing.