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#757656 - 06/21/07 02:17 PM Home Improvement?
#12 Offline
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Joined: Jun 2005
Posts: 1,338
We have some borrowers who own an older doublewide mobile home with an addition on a permanent foundation. We are doing a construction loan for them to remove the doublewide and build a permanent addition to the home. We are then paying off the construction loan with the perm financing. THe lender is thinking that the permanent loan would be a refinance since they owned it in the first place. I think it would be home improvement, but I would like some back up! Anyone have an opinion?
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#757690 - 06/21/07 02:37 PM Re: Home Improvement? #12
Pepper's Sister Offline
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Pepper's Sister
Joined: May 2005
Posts: 546
Midwest
Since they already own the home, and are making improvements to it, I would classify it as a Home Improvement loan.
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#757696 - 06/21/07 02:39 PM Re: Home Improvement? #12
ktac MITCH Offline
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ktac MITCH
Joined: May 2005
Posts: 1,813
Giant side of TX
The easiest way I have seen is answering the following questions, or by saying that purchase Trumps all others and Home improv. Trumps refi.

#1. Are any funds for purchase - if yes it is a purchase loan.
If no #2. Are any funds for home improvement - if yes it is a home improvement loan.
If no then by process of elimination is is refi.

SO - my opinion is that your situation would be a home improvement loan.
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#757976 - 06/21/07 05:00 PM Re: Home Improvement? ktac MITCH
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,832
Bloomington, IN
I'll just make a simple statement... ..... it's home improvement.
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#758032 - 06/21/07 05:34 PM Re: Home Improvement? Dan Persfull
#12 Offline
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Joined: Jun 2005
Posts: 1,338
Thanks all for confirming my thoughts.
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