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I have a customer who owns their land with no liens on it. They are requesting a loan to purchase a mobile home. We will also be using the mobile home as collateral.
The closing agent said that this could not be a purchase because there isn’t a sales contract.
Would this be considered a Home Equity. I guess my brain gets hung up on if any part of the money is use to purchase it is a purchase.Please help me out on this one.
Virginia
Yes, it would be considered a home equity loan under TRID since you are not purchasing or refinancing the real property and it isn’t a construction loan.
1026.37(a)(9)(i)states: “Purchase. If the credit is to finance the acquisition of the property identified in paragraph (a)(6) of this section, the creditor shall disclose that the loan is for a “Purchase.””
Property defined in 1026.37(a)(6) is “[t]he address including the zip code of the property that secures or will secure the transaction, or if the address is unavailable, the location of such property including a zip code, labeled “Property.”
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