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First Time Homebuyer
The purpose of this job aid is to explain how to deliver First Time Homebuyer (FTHB) information at the loan-level, primary, and co-borrower level in the Loan Delivery application.
Loan 1st Time Homebuyer (Sort ID 404) is to be delivered with a value of Loan First Time Homebuyer when the loan qualifies as FTHB. If any of the borrowers on the loan qualifies as a First Time Homebuyer, the loan then qualifies as a FTHB loan. This field is located in the Underwriting section of the Loan Detail screen in Loan Delivery.
When the Loan Purpose (Sort ID 315) is delivered as Purchase and the Property Usage Type (Sort ID 69) is to be delivered as Primary Residence, the 1st Time Homebuyer Indicator (Sort ID 597) must be delivered for the primary and co-borrower. These fields are located in the Borrower/Co-borrower section of the Loan Detail screen in Loan Delivery.
Consider an individual a First Time Homebuyer (FTHB) if they:
are purchasing the security property,
will reside in the security property, and
had no ownership (sole or joint) in a residential property during the three-year period preceding the date of the purchase of the security property.
NOTE: An individual who is a displaced homemaker or single parent will also be considered a FTHB if he or she had no ownership interest in a principal residence (other than a joint ownership interest with a spouse) during the preceding three-year time period. For additional information about making this determination, see the instructions for the Uniform Residential Loan Application (Form 1003).
FTHB Fields and Fatal Edits
The FTHB fields in Loan Delivery are subject to fatal edits.
The following situations will return fatal edits:
Investment property mortgages and second home mortgages should always be delivered with No in the 1st Time Homebuyer field.
Refinance mortgages should always be delivered with No in the 1st Time Homebuyer field.
In the Underwriting section, Loan First Time Homebuyer is the only valid value for the Loan 1st Time Homebuyer field. If the Loan 1st Time Homebuyer field is not delivered with a value of Loan First Time Homebuyer, then primary and co-borrower (if applicable) 1st Time Homebuyer indicator(s) must be delivered as No.
The FTHB flag in Desktop Underwriter® (DU®) is compared with the Loan Delivery field, Loan 1st Time Homebuyer, in the Underwriting section.
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