BJ Bounds
Have you noticed that perhaps your cash-to-close is a little high when you’re doing a 203K loan?
That’s because the supplemental origination fee is being counted twice. If you enter B 14 (from 203k worksheet screen) total rehab cost on page 4 of the 1003 line B (Alterations), the supplemental origination fee will show as a charge twice.
Here’s a quick work-around: Simply enter B 10 (from 203k worksheet screen) on page 4 of the 1003 to prevent the supplemental origination fee from duplicating. To prevent this fee from being charged twice you will need to show a credit for the supplemental origination fee under line L on page 4 of the 1003 using one of the blank fields.
If you want to show the supplemental origination fee as a financed fee, just increase the loan amount by the amount of the fee.
For details and step-by-step instructions, visit our Knowledge Base article #0780 or talk to one of our support specialists at 800-342-2599.
Posted by BJ Bounds 
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