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#1948810 - 08/04/14 07:40 PM Constrution Loan
k jones Offline
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Joined: Nov 2011
Posts: 11
Pensacola, FL
The bank has approved a loan for the construction of a 1-4 family dwelling that will mature in 8 months of which the applicant owns the lot free and clear. Upon completion of the construction, permanent financing will be provided to the borrower. RESPA apply?

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RESPA
#1948814 - 08/04/14 07:46 PM Re: Constrution Loan k jones
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
Upon completion of the construction, permanent financing will be provided to the borrower. RESPA apply?

Yes. You will need to provide the GFE and ETIL for both phases now.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1948818 - 08/04/14 07:52 PM Re: Constrution Loan k jones
k jones Offline
New Poster
Joined: Nov 2011
Posts: 11
Pensacola, FL
Even if there are no fees charged to the borrower at the time of permanent financing a GFE is required?

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#1948864 - 08/04/14 09:05 PM Re: Constrution Loan k jones
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
No fee federally related mortgage loans require a GFE. Review 1024.7, Appendix C and the 4/2/10 RESPA FAQs.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1948869 - 08/04/14 09:08 PM Re: Constrution Loan k jones
k jones Offline
New Poster
Joined: Nov 2011
Posts: 11
Pensacola, FL
Thank you

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