A construction-to-permanent loan will have two separate closings. The borrower will first close on a construction loan, then later close on the permanent financing. How should the Loan Estimate disclosure timing be handled?
Correct Answer
C) Two separate Loan Estimates are required for each phase
Construction-to-permanent loans with separate closings are treated as two separate transactions under TRID. Each transaction requires its own complete TRID disclosures, including separate Loan Estimates, since they involve separate applications and closings.
Why This Is the Correct Answer
Construction-to-permanent loans with separate closings are treated as two separate transactions under TRID. Each transaction requires its own complete TRID disclosures, including separate Loan Estimates, since they involve separate applications and closings.
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