Keep in mind that you should document your file with a take-out or aka commitment letter to show that you are not doing the perm financing. Without this your examiner may view the situation as you committing to doing the perm financing.
Document…Document…Document!
Generally for the temporary loan to be exempt it has to meet all of the conditions:
• It is for temporary financing only. The borrower has a takeout from another lender;
• The borrower already has title to the real property; and
• The term is less than two years.