The disclosure requirements of RESPA apply to which type of loan?

The correct answer pertains to the loan to purchase a duplex and rehabilitate it into a single-family dwelling, as this scenario falls under the residential mortgage category that the Real Estate Settlement Procedures Act (RESPA) is designed to address. RESPA applies to loans on residential properties, which includes not just single-family homes but also properties with up to four units, providing crucial protections to consumers regarding the disclosure of settlement costs and practices.

In the case of the duplex, the intention to rehabilitate it into a single-family residence aligns with the consumer protection goals outlined in RESPA, supporting transparency in mortgage costs and the settlement process.

The other options, such as a loan to purchase land, a farm loan, or a loan for a commercial property like a gas station and convenience store, do not meet RESPA's criteria. RESPA specifically targets residential transactions, so loans tied to agricultural lands or commercial properties are exempt from these disclosure requirements. This distinction ensures that the protections of RESPA are focused on typical homebuyer situations rather than commercial or agricultural financing.