Expansion of borrowing from the bank

1. Dwelling-protected. Point 1003.2(d) defines a sealed-avoid real estate loan due to the fact an extension of borrowing from the bank that’s protected by a great lien for the a home and that is perhaps not a keen open-avoid credit line around 1003.2(o). Thus, particularly, a loan to purchase a home and protected only by a good individual guarantee is not a sealed-avoid home loan because it is maybe not house-protected.

dos. Below 1003.2(d), a dwelling-protected financing isnt a sealed-avoid real estate loan except if it involves an extension off credit. Like, some purchases finished pursuant to help you fees transformation agreements, such certain homes deals, with regards to the items and you will products, might or might not cover extensions off borrowing rendering the new purchases closed-stop mortgages. 2(d) refers to the giving of borrowing from the bank just pursuant to some other personal debt responsibility. (далее…)