In which type of transaction is a Special Information booklet generally NOT required?

A Special Information booklet is typically required in various loan transactions to provide consumers with essential information about obtaining a mortgage and the mortgage process. However, construction loans, which involve financing the building of a new home, often operate under different guidelines compared to other types of transactions.

In construction loans, the focus tends to be on the specifics of the building process, the timeline for construction, and the disbursement of funds as various phases of the project are completed. Since construction loans are specialized in nature, they may not fall under the same requirements that necessitate the distribution of a Special Information booklet, which is usually aimed at standard home purchases and refinances where traditional mortgage disclosures apply.

In contrast, loans for investment properties, purchase loans with fewer transactions, and refinancing existing loans generally require a Special Information booklet to ensure that borrowers are adequately informed about the specifics of their mortgage options.