Section 4: Loan and Property Information

Loan Amount: Enter the total loan amount you are applying for.

Loan Purpose 

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

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

▪ Select Other if the transaction is neither a purchase nor a refinance. Other loan purposes could

be: a temporary construction loan that is not intended to serve as permanent financing, OR a new subordinate loan, the proceeds of which will not be used for a purchase or refinance transaction.

Note: Ask us if you are unsure which Loan Purpose to select.

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).


4a. Loan and Property Information

▪ Select Second Home if you or any Borrower intend to occupy the property but not as your primary residence (for example, as a vacation home).

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

FHA Secondary Residence

In addition to completing the Occupancy field, select FHA Secondary Residence if you are applying for an FHA loan that you or any Borrower will occupy in addition to the primary residence, but for less than six months of the year. This option does not refer to a vacation home.

Mixed-Use Property

A Mixed-Use Property is a property that has a business use in addition to a residential use. Neither retail space within a multi-unit property, nor use of a room in the property as a home office are considered Mixed-Use Properties.

If one or more Borrowers will occupy the property:

▪ Select YES if you will operate a business within the property (for example, a daycare facility).

▪ Select NO if you will not operate a business within the property.

Otherwise, leave this blank.

Manufactured Home

▪ Select YES if the dwelling was delivered to the property site on wheels and a permanent chassis.

▪ Otherwise, select NO.

Note: A modular home is not considered a Manufactured Home. Ask us if you are unsure whether the property is a Manufactured Home.


4b. Other New Mortgage Loans on the Property You are Buying or Refinancing

▪ 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).

▪ Select Does not apply if you are applying for only one new mortgage loan.

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 you will draw (borrow) from a line of credit at closing.

Credit Limit: Enter the maximum amount that you are permitted to borrow if the loan is a line of credit.


4c. Rental Income on the Property You Want to Purchase

Expected Monthly Rental Income

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

▪ Your Lender will calculate Expected Net Rental Income.

▪ Select Does not apply if you are not purchasing property that will generate rental income.

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


4d. Gifts or Grants You Have Been Given or Will Receive for this Loan

Enter the information, if applicable. Select Does not apply if you have not been given and will not receive gifts or grants for this loan. Individuals are sources of Cash Gifts and Gifts of Equity; entities are sources of Grants.

○ Deposited

○ Not Deposited

▪ Enter only for Cash Gift and Grant.

▪ Select Deposited if you have received a cash gift or grant, AND you have deposited it in your 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 You Have.

▪ Do not select Deposited or Not Deposited for Gift of Equity

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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