We are doing a 12 month construction loan on a borrower’s principal residence. The land has a loan already secured by this property. We will be refinancing that land loan with the new temporary construction loan. Since there will be a refinance of the land will we need to collect the government monitoring information?
Government monitoring info is required if the loan involves a natural person getting a loan for purchase or refinance that involves a 1- to 4 family dwelling that is the borrower’s principal dwelling and is collateral for the loan. It appears GMI is needed.