How to Enter Other Financing – a Second Lien or DPA (Down Payment Assistance) in a Loan File

Entering Second Lien or DPA Details

1. Within the loan file, go to the Loan and Property section.
2. Under Other Financing, click the Edit pencil icon.
3. Enter the terms of the second lien or DPA.

• • Be sure to enter all terms. The payment will automatically populate in the Proposed Housing Expense section in Other Finance once all terms are set.

  • For Source Type when entering a DPA, click the blank field under Source Type and choose the appropriate type from the list. 

  • If there is no payment, you do not need to fill in all fields in the Other Finance section.

      4. Click Save when finished. 

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Running Fannie Mae DU for Affordable Mortgage Programs

1. Go to Loan Additional.
2. Click Underwriting using the quick navigation button, or scroll down to the Underwriting section.
3. In Underwriting, click the Edit pencil or double-click any field in the section to open edit mode, then set AUS Type to DU.
4.  Set Community Lending Income Limit to Yes.
5. In Product Type, select the applicable option. If it’s not HFA or HomeReady, choose My Community Mortgage.
6. Set the Seconds Repayment Structure Type, if needed:

• • Click Yes for Seconds.

  • The Seconds Repayment Structure Type field will appear.

  • Select the appropriate option from the drop-down list.

      7. Click Save when finished.

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Running Freddie Mac LPA for Affordable Mortgage Programs

1. Under Loan Additional → Underwriting, set AUS Type to LPA.
2. Click Freddie Program Types
3.  Choose the program type from the list
4. Click Save when finished.
   
   

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 Note for Grants or Non-Recorded DPAs

If the DPA is a grant or will not be recorded, enter it as a credit instead. To do this, go to Loan and Property → Details of Transaction, click Add Purchase Credit, choose Other, enter the grant amount, and click Save.