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# What is the purpose of 'Indicates if land sales price is to be separately disclosed from purchase price of manufactured home (if real property) or Construction Cost' on the Document Data page under the Transaction Data section?

To properly disclose a transaction that is not a 'first user loan'.

Regulation Z Official Staff Commentary (Comment 38(j)(2)(iii)-1) explains that certain construction and manufactured home purchase loans are 'first user loans'. The Sale Price of Property is disclosed on Line K.01 of the Closing Disclosure (Summaries of Transactions, Borrower’s Transaction, Due from Borrower at Closing) for these transactions. Different rules apply to loans that involve construction or a manufactured home purchase and do not meet the definition of a ‘first user loan’.

According to Comment 38(j)(2)(iii)-1, a ‘first user loan’ includes:

- A loan to finance construction of a new structure, where the structure was constructed for sale and the loan is used as, or converted to, a loan to finance purchase by the first user.
- A loan to finance a purchase of a new manufactured home that is known at the time of consummation to be real property under State law, where the manufactured home was purchased for purposes of resale and the loan is used as, or converted to, a loan to finance purchase by the first user.

For a loan to finance construction of a new structure that is not a ‘first user loan’, the sales price of the land and the construction cost must be disclosed as separate line items.

For a loan to finance the purchase of a manufactured home that is known at the time of consummation to be real property under State law that is not a ‘first user loan’; the sales price of the land and the purchase price of the manufactured home must be disclosed as separate line items. When 'Indicates if land sales price is to be separately disclosed from purchase price of manufactured home (if real property) or construction cost' is selected, you will be able to provide the sales price of the land under the Collateral section and the purchase price of the manufactured home or the construction cost under the Purchase Cost or Construction Cost Portion of Sales Price section in Document Data. This results in the sales price of the land and the purchase price of the manufactured home being disclosed as separate line items on Line K.04 of the Closing Disclosure (Summaries of Transactions, Borrower’s Transactions, and Due from Borrower at Closing) for these transactions with overflow to the Closing Disclosure Addendum.