0-9
1003
The Fannie Mae designation for the Uniform Residential Loan Application (URLA) form used by the residential mortgage industry.
1004
The Fannie Mae designation for the Uniform Residential Appraisal Report used by the residential mortgage industry.
1005
The Fannie Mae designation for the Verification of Employment (VOE) form used by the residential mortgage industry to obtain direct verification of an applicant’s employment from the employer.
1006
The Fannie Mae designation for the Verification of Deposit (VOD) form used by the residential mortgage industry to obtain direct verification of an applicant’s current account balance with that person’s bank, credit union or financial institution.
1007
The Fannie Mae designation for the appraisal report form used by the residential mortgage industry to review the comparable market rents in the area surrounding the subject property.
1008
The Fannie Mae designation for the Loan Transmittal Summary used by the residential mortgage industry to summarize the terms of the loan, when the loan’s ownership is transferred.
1031
A tax-free exchange of similar properties, permitted under Section 1031 of the Internal Revenue Code. Real estate investors use this program to avoid capital gain taxes when selling their property. However, they must use the proceeds to buy another like-kind property within the strict procedures required by the IRS. Unlike straight exchanges, the 1031 exchange is a delayed exchange, which means that you don’t have to purchase your “exchange” property at the same time as you’re selling your current property.
1099
An IRS-designated form used by businesses to report payments to consultants or service providers who are paid on a contractual basis. A copy of the 1099 is provided to the contractor for preparing income taxes and documenting gross income. Because the 1099 doesn’t factor any withholdings and deductions for income taxes, it is not considered an adequate documentation of true income qualification — at least for mortgage loan purposes. Lenders will instead focus on the adjusted gross income calculated on the tax return. Mortgage lenders will sometimes review a borrower’s 1099, if any to confirm tax return figures.
203B
The section 203(B) mortgage insurance is the standard FHA loan program for homeowners seeking a mortgage loan refinance and homebuyers in need of a purchase mortgage loan. These FHA loan programs allows qualified applicants to obtain home loans up to 96.5% of the value or purchase price of the home, whichever is lower, and are used with fixed-rate, ARM and balloon loans.
203K
The section 203(K) mortgage insurance program is a loan program that allows homeowners to increase their mortgage loan amount by up to $35,000 for the purpose of covering rehabilitation and improvements to the home.
248
The section 248 mortgage insurance program is a loan program that provides financing for homes located on Indian reservations and other restricted areas in the U.S.
465
A Freddie Mac (FHLMC) appraisal report
4506
An IRS-designated form used to obtain transcripts of consumer tax returns. Mortgage lenders will sometimes require applicants to sign a 4506 form, which will allow the lender to obtain a transcript directly from the IRS of the borrower’s most recent tax returns. Mortgage lenders will use the 4506 to verify that the tax returns submitted by the borrower are accurate and valid. Other lenders will use the 4506 form, in lieu of asking for borrower tax returns.
401K
A retirement investment plan created by the U.S. Congress, which has become the replacement pension program of choice for modern American businesses. Employees are allowed to set aside a portion of their pre-tax income into tax-deferred 401K accounts. They will not have to pay income taxes until they withdraw funds after retirement. The 401K fund is normally managed by licensed financial institutions. Most corporate employers also contribute to their employees’ 401K accounts, which are portable, should the employee decide to transfer to a different company or employment. Although there are penalties for early withdrawals, homebuyers are also allowed to borrow against their 401K. Many do so to pay for the down payment.
403B
A version of the 401K program available for employees of not-for-profit organizations.
80/10/10
A type of purchase loan arrangement that features a 10% down payment by the borrower, combined with two concurrent loans: a first mortgage loan for 80% of the purchase price, and a second mortgage loan for 10% of the price. By keeping the first mortgage loan at 80% LTV (or below), the borrower is able to avoid private mortgage insurance (PMI).
80/20
A type of no-money-down mortgage loan that uses two concurrent loans in a piggyback arrangement. With a first mortgage loan for 80% of the purchase price (or appraised value) and a second mortgage equal to 20% of the purchase price (or appraised value), the borrower obtains 100% financing. By keeping the first mortgage loan at 80% LTV (or below), the borrower is able to avoid private mortgage insurance (PMI).
