Learning Clip - Newly Constructed Homes

Loan Prospector – How to Enter a Loan for Mortgages for Newly Constructed Homes

If you are using a loan origination system ('system-to-system') that interfaces with the Loan Prospector credit engine, the field names your system displays may differ from the corresponding Loan Prospector field names. The field groupings and the order in which you enter information may also vary. Contact your system administrator, or system vendor, for more information on data input mapping from your system to Loan Prospector.

If your loan origination system has not been updated with the New Construction values, you can take advantage of the new Mortgages for Newly Constructed Homes offering by entering the loan directly into LoanProspector.com browser and selecting one of the new values (Newly Built or Construction Conversion).

After logging in to Loan Prospector, start a new loan application.

Enter loan information on the Loan File Setup page.

Enter the names of the borrower(s) that will be on the Permanent Financing.

Select Next.

The Loan File Setup page displays:

If Interim Construction Financing is used, the borrower(s) on the Permanent Financing must be the same borrower(s) on the Interim Construction Financing. Borrower(s) cannot be added or removed when the Interim Construction Financing is paid off, modified, or converted, and replaced by the Permanent Financing.

On the Loan Application Data page, enter the loan information into the different sections.

Select Next.

The Loan Application Data page displays.

Enter Conventional in the Mortgage Type field. FHA and VA are not eligible for the Mortgages for Newly Constructed Homes offering.

Enter the Offering Identifier, if applicable. Initial Interest Mortgages are eligible for Newly Built Home Mortgages only; and Home Possible® Mortgages are only eligible for Newly Built Home Mortgages secured by site-built properties.

Enter the street address in the Property Address field for the site-built or manufactured home. If the address changes during construction, the loan must be resubmitted. For example, a change from a lot number to a street address must be resubmitted.

Enter the type of property in the Property Type field. A Renovation Mortgage may not be secured by a manufactured home.

Enter the property value in the Appraised Value of Property field. For information on how to determine the value, refer to the Single-Family Seller/Servicer Guide (Guide) Chapter K33.

Enter the applicable Building Status:

Proposed or Under Construction for Newly Built and Construction Conversion
Substantially Rehabilitated or Alteration, Improvements, Repair for Renovation
Condos are not eligible for Construction Conversion Mortgages.

Enter Purchase or Refinance in the Purpose of Loan field based on the following:

If…	p>Then Enter…
Newly Built Home Mortgage	Purchase
If Construction Conversion or Renovation and borrower is not the owner of record of the land (or if a site-built-home is on a leasehold estate, *is not* the lessee of the leasehold estate) prior to the closing of the Interim Construction Financing	Purchase
If Construction Conversion or Renovation and borrower is the owner of record of the land (or if a site-built home is on a leasehold estate, is the lessee of the leasehold estate) prior to the closing of the Interim Construction Financing	Refinance

Enter, as applicable, either Newly Built or Construction Conversion in the New Construction field (Renovation Mortgages should use the Construction Conversion value):

Newly Built - if obtaining financing for the purchase of a newly constructed site-built home or newly purchased manufactured home when the borrower takes title to both the land and home at closing. There is no interim construction financing.
Construction Conversion - if obtaining permanent financing to replace interim construction financing obtained by the borrower. The borrower used the interim construction financing to purchase or refinance the land, as applicable, and:

Construct a new site-built home, or
Purchase and permanently affix to the site and convert to real property, a new manufactured home, or
Renovate, repair, restore or rehabilitate an existing site-built home.

If applicable, enter remaining information on any additional pages (Adjustable Rate Mortgage page, Refinance page, and Buydown page).

Select Next.

The Refinance page displays.

Site-built homes are eligible for cash-out and no cash-out refinance transactions. Manufactured homes are eligible for no cash-out refinance transactions. Streamlined Refinances and Special Purpose Cash-out Refinances are not eligible for the Mortgages for Newly Constructed Homes offering.

On the Request Services page, select the services you would like to request from Loan Prospector.

Select Submit and follow the submission prompts.

The Request Services page displays.

You can use either infiles or merged credit (including Reference Numbers from previously-ordered merged credit).

Infiles will automatically be obtained through Loan Prospector with an assessment.

Merged Credit will be obtained if the merged credit is requested with AUS, or infiles if Reference Numbers are entered to access previously ordered merged credit data. If you need to resubmit, keep the same CRC, critical borrower data, and submitting entity after the first 120 days to maintain the same credit data for 18 months. You may receive a new credit file if you resubmit after certain conditions change. For a list of these conditions, see Additional Tips, under Resubmission, in either of these two documents:

Using Loan Prospector® Merged Credit Report Options (LoanProspector.com Browser Access Method), or

Ordering Merged Credit (LoanProspector.com System-to-System Access Method)

After the assessment is complete, review your results.

Correct any data entry errors and resubmit as required.

The Results page displays.

Mortgages for Newly Constructed Homes require an appraisal with interior and exterior inspection that meets the requirements of Freddie Mac's Single-Family Seller/Servicer Guide (Guide) Chapter 44, regardless of any other Loan Prospector Minimum Assessment Feedback.

The LP Assessment Expiration Date will indicate 18 months from the date the credit was first obtained for both infiles and merged credit.

Additional Resources:
Visit the Freddie Mac Learning Center at http://www.FreddieMac.com/learn/uw to access tips, self-study references, news, training information and other useful tools to help you get going with Loan Prospector.

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