We have a refinance of a rental SFR for 6 months only. Proceeds are to pay off the underlying loan on the property and provide about 10% of funds for engineering to be done on the property in preparation to develop the land as a multiple housing plat. The idea is to sell the 7 acre parcel at the end of our loan to a developer who will put in the infrastructure and build out or sell the individual lots. Meantime the borrower will keep the development piece progressing using the cash back funds from our loan.

Question - is this home improvement, or refinance. I am leaning toward home improvement, as the ultimate goal will be to construct residences.