Excess Interested Party Contributions

This document shows you how to enter excess interested party contributions (IPCs). This document is not intended to provide detailed instructions for entering loan application data in Desktop Underwriter® (DU®), but rather to provide you with an example of how to enter excess IPCs in DU.

If there are IPCs and they exceed the limits specified in the Selling Guide, then they are considered sales concessions. You must adjust the property's sale price downward to reflect the amount of contribution that exceeds the limit. 

The following is an example of how this must be reflected in DU.

            Purchase price: $300,000

            LTV = 94% (IPC limit is 3%)

            Seller paid closing costs: $15,000

            Sales concessions: $6,000 ($15,000-9,000 IPC limit)

The data entry for this example is displayed in the screens below:

Note: The amount entered in A. Sales Contract Price was adjusted downward by the amount of the sales concession. 

Note: The amount entered inL. Seller Credits was adjusted downward by the amount of the sales concession. 

Note:  The amount entered inA. Sales Contract Price was adjusted downward by the amount of the sales concession, and L. Seller Credits was adjusted downward by the same amount in order forCash From/To the Borrower to calculate correctly.