Posted By: Sheldon Hendrix
Using Equity of Rental to Finish Constructing Home - 04/22/10 03:41 PM
If the purpose of loan is to borrow against equity of rental home to finish the construction of a customer's principal dwelling, is this HMDA reportable as a purchase?
Posted By: Mrs. Rizzo
Re: Using Equity of Rental to Finish Constructing Home - 04/23/10 04:46 PM
Is it going to be paid off with permanent financing?
Posted By: Sheldon Hendrix
Re: Using Equity of Rental to Finish Constructing Home - 04/26/10 03:36 PM
No, it's a 90 day note. He is planning on paying off completely at the end of the term.
I think it's a purchase. Secured by a lien to construct a dwelling, and nothing is temporary just short term.
Still awaiting answer from FRB HMDAHELP.
Posted By: Carolyn31
Re: Using Equity of Rental to Finish Constructing Home - 05/11/10 02:02 PM
What property do you report on the second loan? The property being used for security or the property being purchased?