Do i treat this as a refinance or purchase? We did a construction loan for borrower and already owned the lot. At closing we treated the loan as a refinance as we paid off the construction loan and he got cash out to payoff some credit cards. Which way do i report, generally permanent financing that is replacing the construction loan is a purchase and it appears here to be a multiple purpose loan and purchase would trump refinance...HELP

I think you've thought it out correctly.....purchase trumps refinance, so report as a purchase.