Module 5: Section 4 - Loan and Property Information

This section contains information about the loan terms that the borrower is applying for.

In section 4a. Loan and Property Information, applicants must fill out the following, if applicable:

• Loan Amount

  • Enter the total loan amount they are applying for.

• Loan Purpose

  • Select Purchase if they are applying for a mortgage loan to buy the property; OR ▪

  • Select Refinance if they already own the property, even when there are no mortgages currently on the property (for example, if they own the property free and clear and intend to take out equity/cash); OR

  • Select Other if the transaction is a new subordinate loan, the proceeds of which will not be used for a purchase or refinance transaction.

• Property Address

  • The subject property address must match the address as listed on USPS

  • Unit # - Enter the property unit’s identifier, if there is one. Include any unit number that is part of the legal property address (for example, “A”, “1”, “1A”, or “123”).

• Property Value

  • Enter the current estimated value of the property. At loan closing, this is the property value used for loan qualification purposes, generally obtained from the appraisal report.

• Occupancy

  • Select Primary Residence if:

    • at least one Borrower applying for the loan intends to occupy the property as his or her primary residence, OR

    • the mortgage loan meets the requirements for Primary Residence eligibility (for example, if you are a parent/legal guardian providing housing for your disabled adult child or children, or you are providing housing for your occupant parents that are unable to work or do not have sufficient income to qualify).

  • Select Second Home if any Borrower intends to occupy the property but not as their primary residence (for example, as a vacation home).

  • Select Investment Property if all Borrowers intend to own, but not occupy, the property.

In section 4b. Other New Mortgage Loans on the Property You are Buying or Refinancing, applicants must fill out the following, if applicable:

• Enter the details if you are applying for more than one new mortgage loan to purchase or refinance this property (for example, you are applying for a second mortgage at the same time as the first mortgage).

• Loan Amount/Amount to be Drawn

  • Enter the loan amount if it is a closed-end loan (no additional funds can be drawn after closing) OR, enter the amount they will draw (borrow) from a line of credit at closing.

• Credit Limit

  • Enter the maximum amount that they are permitted to borrow if the loan is a line of credit.

• Select “Does not apply” if you are applying for only one new mortgage loan.

• Note: Liens against properties you already own are entered in Section 3: Financial Information – Real Estate.

In section 4c. Rental Income on the Property You Want to Purchase, applicants must fill out the following, if applicable:

• Expected Monthly Rental Income

  • Enter the estimated gross rental income (before expenses) they expect to receive on the property they are purchasing.

• Select “Does not apply” if they are not purchasing property that will generate rental income.

• Note: Rental income earned from properties they already own is entered in Section 3: Financial Information – Real Estate.

In section 4d. Rental Income on the Property You Want to Purchase, applicants must fill out the following, if applicable:

• Enter the information, if applicable. Select “Does not apply” if they have not been given and will not receive gifts or grants for this loan.

• Deposited/Not Deposited

  • Enter only for Cash Gift and Grant.

  • Select Deposited if

    • They have received a cash gift or grant, AND

    • They have deposited it in their account(s), AND

    • It is included in the Cash or Market Value shown for the account in Section 2a. Assets – Bank Accounts, Retirement, and Other Accounts They Have.

  • Do not select Deposited or Not Deposited for Gift of Equity.