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#2185043 - 07/12/18 02:07 AM Sweat Equity
Jeep girl Offline
New Poster

Registered: 09/25/15
Posts: 16
How do you show sweat equity so it doesn't appear the borrower actually needs to come in with cash? Borrower is building on land already owned. Our loan amount is $310,000 and we show the total payoffs as $369,800 per the total construction cost breakdown and the payoff of the land loan. The borrower is going to do $39,800 in sweat equity but the CD shows it as Cash to Close. We don't know how to show it so it reflects $0 on the CD since it isn't actual cold hard cash. Any help would be GREATLY appreciated.

TRID - TILA/RESPA Integrated Disclosures Rule
#2185053 - 07/12/18 08:32 AM Re: Sweat Equity [Re: Jeep girl]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 69236
Loc: Galveston, TX
Adjustments - Section L
The opinions expressed here should not be construed to be those of my employer:

#2185084 - 07/12/18 01:33 PM Re: Sweat Equity [Re: Jeep girl]
Bville Offline
Diamond Poster

Registered: 05/08/01
Posts: 1173
Loc: Out West
Just curious what label you would put in Section L for the sweat equity?

#2185085 - 07/12/18 01:35 PM Re: Sweat Equity [Re: Jeep girl]
RR Joker Offline
10K Club

Registered: 11/15/02
Posts: 20379
Loc: The Swamp
Our system has that specific category under adjustments. I'm not sure I would reflect it in this particular scenario simply because work you are doing yourself on your own construction wouldn't typically be in the contract with the third party, but I digress.
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour