Help with Point 7.6: 203K Loan Calculations

BJ Bounds

Have you noticed that perhaps your cash-to-close is a little high when you’re doing a 203K loan?

That’s because the supplemental origination fee is being counted twice.  If you enter B 14 (from 203k worksheet screen) total rehab cost on page 4 of the 1003 line B (Alterations), the supplemental origination fee will show as a charge twice.

Here’s a quick work-around: Simply enter B 10 (from 203k worksheet screen) on page 4 of the 1003 to prevent the supplemental origination fee from duplicating.  To prevent this fee from being charged twice you will need to show a credit for the supplemental origination fee under line L on page 4 of the 1003 using one of the blank fields.

If you want to show the supplemental origination fee as a financed fee, just increase the loan amount by the amount of the fee.

For details and step-by-step instructions, visit our Knowledge Base article #0780 or talk to one of our support specialists at 800-342-2599.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: