Lender Loan Information

This Section of the Uniform Residential Loan Application pertains only to the lender and is not applicable to the borrower. 

Completing the URLA – Lender Loan Information

The following provide guidance for certain fields on the URLA-Lender Loan Information form. Instructions are grouped by URLA section, and not every field is described. Instructions for self-explanatory fields (for example, Project Type and Lien Type) are not included.

L1. Property and Loan Information

Transaction Detail ▪ Check Conversion of Contract for Deed or Land Contract when the mortgage loan proceeds will be used to pay off the balance due on a contract for deed or land contract, whether the loan is a purchase or refinance transaction.

▪ Check Renovation when the mortgage loan proceeds will be used to finance the cost of renovations to the property, and the value assigned to the renovations is included in the appraised value.

Refinance Type Identify the applicable Refinance Type based on the investor, guarantor, or Lender guidelines. This field may not apply if a Refinance Program is provided (for example, when Interest Rate Reduction is entered for a VA loan).

▪ Select No Cash Out for FHA, Freddie Mac, or USDA-RD No Cash Out refinances.

▪ Select Limited Cash Out for Fannie Mae Limited Cash Out refinances.

▪ Select Cash Out for Fannie Mae, FHA, Freddie Mac, or VA Cash Out refinances.

Refinance Program Identify the applicable Refinance Program based on the investor, guarantor, or Lender guidelines. This field may not apply (for example, Refinance Program is not applicable for Fannie Mae loans).

▪ Select Full Documentation for FHA and USDA-RD

▪ Select Interest Rate Reduction for VA

▪ Select Streamlined without Appraisal for FHA and USDA-RD

▪ Select Other and fill in the blank as required to describe refinance programs not listed above.

Energy Improvement ▪ Check Mortgage loan will finance energy-related improvements if the mortgage loan proceeds will be used to finance energy-related improvements, whether the Loan Purpose is Purchase or Refinance.

▪ Check Property is currently subject to a lien that could take priority over the first mortgage lien, such as a clean energy lien paid for through property taxes (e.g., the Property Assessed Clean Energy Program) if there is an energy lien on the property that the Borrower(s) are repaying through property taxes. (This option does not refer to standard real estate property taxes or homeowners’ association liens on the property.)

L2. Title Information, Manner in Which Title Will be Held Before closing, the Lender should discuss with the Borrower(s) how they will hold title to the property.

Indian Country Land Tenure

A reservation is an area of land “reserved” by or for an Indian land, village, or tribe(s) to live on and use. There are three basic categories of land tenure in Indian Country – Fee Lands, Allotted Trust Lands, and Tribal Trust Lands.

▪ Select Fee Simple On a Reservation if the land is held by an owner, whether Indian or non-Indian, with no restrictions.

▪ Select Individual Trust Land (Allotted/Restricted) (also referred to as Allotted Trust Land) if the land is held in trust for the use of a tribe. The Federal government holds the title, and the individual (or heirs) holds the beneficial interest. Restricted fee land is land in which an

individual Indian holds legal title, but with legal restrictions against alienation or encumbrance.

▪ Select Tribal Trust Land On a Reservation if the land is held in trust by the United States government for the use of a tribe. The United States holds the legal title and the tribe holds the beneficial interest. Tribal trust land is held communally by the tribe and is managed by the tribal government.

▪ Select Tribal Trust Land Off Reservation if the land was purchased by a tribe outside of its

reservation boundaries and then converted to trust land through a regulated process with the Bureau of Indian Affairs.

▪ Select Alaska Native Corporation Land if the land is owned by an Indian tribe and was conveyed by the United States to a Native Corporation pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.) or conveyed by the United States to a Native Corporation in exchange for such land.

L3. Mortgage Loan Information

Terms of Loan ▪ Note Rate – Enter the interest rate stated on the note signed by the Borrower(s). For an Adjustable-Rate Mortgage, enter the initial interest rate.

▪ Loan Term – Enter the amortization term of the loan. For a balloon loan, enter the amortization term on which the payment is based.

Amortization Type  - Select Adjustable Rate if the mortgage loan has an interest rate that periodically adjusts based upon a specified term and external index.

Proposed Monthly Payment for Property

▪ Subordinate Lien(s) (P&I) - Enter the total of all required monthly payments associated with any subordinate lien on the property at closing as entered for Monthly Mortgage Payment under Sections 3a. Property You Own and/or 4b. Other New Mortgage Loans on the Property You are Buying or Refinancing.

▪ Supplemental Property Insurance - Enter the total of the monthly payments for property insurance the Borrower(s) are required to obtain in addition to homeowner’s insurance (for example, flood, earthquake, or other hazardous condition coverage).

▪ Mortgage Insurance - Enter the monthly payment for mortgage insurance (or mortgage insurance equivalent such as FHA MIP or RD guaranty).

▪ Association/Project Dues (Condo, Co-Op, PUD, or special assessments) - Enter the monthly cost of the: a) owners’ association dues for properties in a condo or PUD project; b) co-op corporation fees that are the responsibility of the Borrower(s); or (c) any special assessment that is the responsibility of the Borrower(s).

▪ Other - Enter the total amount of other required expenses, such as the monthly cost of ground rent on a leasehold or a Community Land Trust property.

L4. Qualifying the Borrower – Minimum Required Funds or Cash Back

A. Sales Contract Price Enter the sales price stated in the sales contract.

B. Improvements, Renovations and Repairs 

Enter the cost of these items when included as part of the transaction.

C. Land (if acquired separately)

Enter the cost or value of land (depending on investor requirements) that is not part of the sales contract price or included in the current indebtedness against the property. For example, when the Borrower(s) own or buy the land outside of the purchase price of the property in a:

▪ Construction Conversion or Construction–to-Permanent transaction where the Borrower purchases the land separately outside of the sales contract and the sales contract price reflects only the price of building the improvement, OR

▪ Manufactured Housing transaction where the Borrower owns the land and the sales contract price is to purchase only the manufactured home that is then permanently placed on the Borrower’s land.

E. Credit Cards and Other Debts Paid Off

Enter the total debt (other than mortgage debt secured by the property) that is to be paid off at or before closing of the mortgage loan. Include the sum of the amounts entered in Unpaid

Balance under Section 2c. Liabilities—Credit Cards, Other Debts, and Leases that You Owe, that have been checked as To be paid off at or before closing.

F. Borrower Closing Costs

Enter the amount of closing costs that are used in qualifying the Borrower(s), including: closing costs, prepaid items and initial escrow deposits, and the costs for private mortgage insurance (PMI) or equivalent (FHA Upfront Mortgage Insurance Premium (MIP), VA Funding Fee, and USDA-RD Guarantee Fee).

G. Discount Points Enter the total of all discount points charged by the Lender.

I. Loan Amount ▪ Loan Amount Excluding Financed Mortgage Insurance (or Mortgage Insurance Equivalent) – Enter the base loan amount before the inclusion of financed private mortgage insurance or equivalent (FHA Upfront Mortgage Insurance Premium, VA Funding Fee, and USDA-RD Guarantee Fee).

▪ Financed Mortgage Insurance (or Mortgage Insurance Equivalent) Amount – Enter the amount of private mortgage insurance or equivalent (FHA Upfront Mortgage Insurance Premium, VA Funding Fee, and USDA-RD Guarantee Fee) that will be included in the loan amount.

▪ Loan Amount - Enter the sum of the base loan amount plus the financed mortgage insurance in the right-hand column.

J. Other New Mortgage Loans on the Property

Enter the amount of any other new loans that will be obtained by the Borrower and secured by the property at the same time as the subject loan. (For example, if the Borrower is obtaining a new second mortgage in addition to the first mortgage (with the same or a different Lender), enter the amount of the new second mortgage here).

L4. Qualifying the Borrower – Minimum Required Funds or Cash Back

Note: The amount entered here should be the same as the sum of the amounts entered for Loan Amount/Amount to be Drawn in Section 4b. Other New Mortgage Loans on the Property You are Buying or Refinancing.

L. Seller Credits Enter the amount of Borrower(s) costs paid by the property seller.

M. Other Credits Enter the sum of all purchase credits in addition to those itemized under 2b. Other Assets and Credits You Have.

Note: Add together all of the following that apply to the transaction: borrower credits (e.g., borrower paid fees (before closing), earnest money, lot equity, sweat equity); lender credits; credits from other third parties (e.g. relocation funds, employer assisted housing); non-cash credits from the seller (e.g., trade equity, rent credit); and other credits that do not “fit” into the listed option 

Related Topics:                                                           Sections of Uniform Residential Loan Application

Section 1 : Borrower Information               Section 2: Financial Information - Assets and Liabilities               Section 3: Financial Information - Real Estate               Section 4: Loan and Property Information               Section 5: Declarations               Section 6: Acknowledgements and Agreements               Section 7: Military Service               Section 8: Demographic Information               Section 9: Loan Originator Information

Related to Uniform Residential Loan Application:                    

Additional Borrower Application, if applicable          Continuation Sheet, if applicable          Unmarried Addendum, if applicable

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