How do I document excess funds from the borrower that are not disbursed to the seller?

The information that follows may be used as a guide to enter additional funds on the Loan Estimate and Closing Disclosure such as funds saved by the borrower, to be added to the amount borrowed, or funds from a simultaneous second.

Loan Estimate

If the value is known at application time, enter the desired value in the Generalized Other Credits field on the Calculations page. This will show the entered amount as a credit in the Adjustments and Other Credits line of the Calculating Cash to Close table, reducing the Estimated Cash to Close amount due from the borrower, or increasing the Estimated Cash to Close available to the borrower.

Note: Adjustments and Credits are only available when using the Standard (Seller involved) Loan Estimate and Closing Disclosure.

Closing Disclosure

The steps that follow outline how to add an entry in section L. Paid Already by or on Behalf of Borrower at Closing of the Summaries of Transaction table of the Closing Disclosure and a credit in the Adjustments and Other Credits line of the Cash to Close table, reducing the cash from borrower or increasing the cash to borrower.

On the Closing Disclosure page:

1. Add a CLOSING ADJUSTMENTS record.

2. In the Closing Adjustment Item drop-down list, select Other.

3. Enter a Description for the adjustment.

4. In the Integrated Disclosure Section, select Paid Already by or on Behalf of Borrower at Closing.

5. In the Integrated Disclosure Subsection, select either Adjustments or Other Credits.

6. Enter the desired Amount being added by the borrower.

7. In the When Paid drop-down list, select At Closing.

Please review the Loan Estimate and Closing Disclosure documents for accuracy and compliance, including the Seller section and/or Seller Only copy if applicable.