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#2120786 - 03/07/17 02:49 PM Pay Builder - No construction loan
Cbigun Offline
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We have a customer who owned the lot. They have had a home built on that lot and now are getting a loan to pay the builder. There was no construction loan and no lien. (Don't know the details of why) But the loan purpose states, "Cash out to pay builder". HMDA reportable as a purchase?

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#2120789 - 03/07/17 02:53 PM Re: Pay Builder - No construction loan Cbigun
Norman Paperman Offline
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Norman Paperman
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I'm interested to see what others say, but I'm inclined to say a purchase as this is the first occupant of the dwelling.
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#2120814 - 03/07/17 03:40 PM Re: Pay Builder - No construction loan Norman Paperman
Cbigun Offline
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That was my thought!

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#2120818 - 03/07/17 03:44 PM Re: Pay Builder - No construction loan Cbigun
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
There was no construction loan and no lien. (Don't know the details of why)

Knowing those details would help formulate an answer to your question.

However under speculation the builder carried the construction costs as part of the construction contract and the borrowers are now re-paying the contractor for work performed. In that case I would agree with Norman, purchase.
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#2123403 - 03/24/17 01:04 PM Re: Pay Builder - No construction loan Cbigun
Cbigun Offline
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Details tend to be a luxury! I think you have speculated correctly though. Thank you both for your help.

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