Expansion off borrowing
step one. Dwelling-covered. Area 1003.2(d) defines a sealed-avoid real estate loan just like the an extension of borrowing which is secure by a great lien to your a home that is perhaps not a keen open-avoid line of credit significantly less than 1003.2(o). For this reason, such, that loan to invest in a home and you may secure merely of the good individual be sure isnt a shut-stop mortgage since it is perhaps not house-covered.
2. Less than 1003.2(d), a home-protected financing is not a close-stop real estate loan except if it involves an extension out-of borrowing from the bank. Instance, particular transactions complete pursuant in order to cost conversion contracts, including certain land contracts, depending on the points and you may situations, might not include extensions away from borrowing from the bank helping to make this new purchases closed-prevent mortgage loans Phoenix installment loans bad credit. 2(d) is the giving from borrowing merely pursuant to another debt duty.