When we lend to a customer who is purchasing a home and doing home improvements we use one closing of a temporary loan with multiple advances with the initial advance being for the purchase. We then do subsequent advances as funds are needed for the home improvements. The current principal dwelling is not taken as collateral, just the home being purchased. This new home will become the principal dwelling upon completion of the improvements. There is a multiple purpose exemption under the right of rescission for just this scenario. However, does the fact that we do not disburse all of the funds at closing but make multiple advances void this exemption?