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Time Limit on the Construction Phase?

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Question: 
Is there a time limit on the construction phase of a one-time close construction-perm loan? In the old days, Reg Z limited the construction phase to 12 months but I'm unsure what apples now.
Answer: 

To the best of my knowledge Reg. Z never restricted the construction phases's term. It's just that if the construction phase exceeds 12 months then it does not qualify for the exemption in 1026.43.

(a) Scope. This section applies to any consumer credit transaction that is secured by a dwelling, as defined in § 1026.2(a)(19), including any real property attached to a dwelling, other than:

(iii) A construction phase of 12 months or less of a construction-to-permanent loan;

First published on 09/20/2020

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