In HomeKeeper, Funding Sources provide insight into:

• Loan and grant terms for each source of funding
• The distribution of program-managed funds to program participants 
• Community investment and affordability impact
• The portion of funds that can be reused
• Rehab or refinance funding applied after closing
• Repayment, forgiveness, and recapture of funds 

Every client household that purchases a home will have Funding Sources linked to their Service File. These sources represent the financing a buyer uses to cover the total amount due at closing (home price + closing costs).

Funding Sources can also be used to record the distribution of other types of funds to your Program Participants outside of a traditional Home Purchase! 

Overview of the Funding Sources Object

Entering a Buyer's Purchase Loans, Grants, and Funds

Step One: Navigate to the Purchase Tab on the Service File to Enter Funding Sources

Funding Sources are Related to the Service File and can be found under the Related tab. However, they are also located on the Purchase tab so you can enter Purchase details alongside your funding sources all at once. 

Step Two: Enter Each “Layer” of Funding and Record Grant and Loan Terms 

Explore the types of funds applied at closing and how to record terms and details.

Loans

Buyer's Purchase Loans

Using the Buyer's Closing Disclosure, enter the following: 

• Input loan details under “Information”: 
  • Funding Source Name 
  • Amount
  • Lender/Funder
  • Status 
  • Funding Source Type = Loan (Purchase)
  • Funding Source Type Detail 
• Enter terms under “Loan Information”: 
  • Interest Rate 
  • Monthly Principal and Interest 
  • Interest Rate Variability
  • Term (Months)
  • Lien Position = 1st
  • Due on Sale = TRUE

EXAMPLE: A Conventional Loan for a 30-Year, Fixed Rate Mortgage

 

 

Down Payment Assistance Loans (DPALs)

For Down Payment Assistance Loans, you will record the same information as purchase loans, but the details will vary, depending on the terms of the loan. 

You may also need to record:

• Opportunity: Enter an Opportunity to create a Service File Allocation from an Opportunity to show the distribution of funds from a Program Managed Fund to a Buyer
• Due on Sale: 
• Forgivable: 

EXAMPLE: In the example below, we have entered a Silent Second, with no repayment requirements and forgivable after 5 years, in the second Lien position. 

 

 

 

 

Grants

Down Payment Assistance Grants that have no liens or repayment requirements can be entered with the Funding Source Type "Grant (Public/Nonprofit).

• Input loan details under “Information”: 
  • Funding Source Name 
  • Amount
  • Lender/Funder
  • Status 
  • Funding Source Type = Grant (Public/Nonprofit)
  • Funding Source Type Detail
  • Opportunity (when applicable)
    • Just as with your Loans, connecting a Funding Source for grants to an Opportunity will create a Service File Allocation out of the selected Opportunity. 

 

EXAMPLE: Here we've entered a Down Payment Assistance Grant from the Program to the Buyer

 

 

 

Step Three: Ensure that Funding Sources add up to equal "Gross Amount Due From Borrower 

Funding Sources that have been designated as one of the Funding Source Types applied at closing will all add up in the Funding Source Total Section. The Funding Source Total should equal the Gross Amount Due From Borrower once you've entered all sources of funding. 

The field “Gross Amount Due Equals Funding Sources” will tell you whether you have entered your Funding Sources properly. If they are not adding up, it will also tell you how much Funding Sources are off by.

Update Loan Payoff and Forgiveness

 As loans are paid off or forgiven, you can fill out the “Repayment” section in the Funding Source. 

• For payoffs - Be sure to fill out the Payoff date and Total Amount Repaid 
• For forgiven loans, fill out the total amount forgiven

Loans will need to be reconciled prior to entering a Resale.

Record Loan and Grant Terms, and Program Managed Fund Distribution, for Participants of Non-Home Purchase Programs

When leveraging Funding Sources to record Program-Managed Fund Distribution and repayment terms for programs outside of Home Purchase, the data entry process and requirements will differ from those entered when recording a complete purchase. 

Again, some Examples of the types of programs that can be tracked using Funding Sources are: 

• Down Payment Assistance 
• Personal or Credit Building Loans 
• Home Repair Grants or Loans 
• Auto Loans
• Etc. 

Step One: Navigate to the Funding Source Related List and Create a New Funding Source 

1. Select the Service File where you would like to add the Funding Source 
2. Click on the “Related” tab 
3. Scroll down to Funding Sources and click “New Funding Source” 

Step Two: Add Loan or Grant Details 

4. Name 
5. Amount 
6. Lender/Funder 
7. Status
8. Funding Source Type 
9. Funding Source Type Detail 

Step Three: Connect to an Opportunity 

10. Opportunity: Enter an Opportunity to create a Service File Allocation from an Opportunity to show the distribution of funds from a Program Managed Fund to a Buyer

Step Four: Add Loan or Grant Terms 

11. Interest Rate 
12. Monthly Principal and Interest 
13. Term (Months) 
14. Lien Position
15. Due on Sale 
16. Forgivable

Add Repayment or Forgiveness Over Time 

 As loans are paid off or forgiven, you can fill out the “Repayment” section in the Funding Source. 

• For payoffs - Be sure to fill out the Payoff date and Total Amount Repaid 
• For forgiven loans, fill out the total amount forgiven