Construction Loan - Best Option?

We have a loan request that is kind of an odd situation. Customers have bought a house and have the 1st through another institution. They want to borrow more funds to add on to the house and have come to us for a 2nd mortgage. They are going to take the funds in draws, not all at once. Can this be considered a construction loan with them living in the house or is there a better option?

For what - TRID purpose? It would be Home Equity. Construction is only initial construction.

Yes this is a TRID purpose loan. We changed it to Home Equity, but can the loan still be structured as a construction loan? Its one year term with draws. Just don't want us to get tripped up on anything.

Loan structure is a lender decision and related to State law. TRID just tells you what and how you need to disclose a loan, not what you can or cannot do.