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#2201250 - 12/20/18 05:30 PM Calculating Cash to Close w/ Seller Credit
julesbok Offline
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Joined: Mar 2014
Posts: 47
OK
We have a bridge loan application for the purchase of a new personal residence that will include funds for improvements to be made to the home being purchased. The remodel funds will be advanced as improvements are made, so there will be a "construction holdback". I am having trouble figuring out how to complete the Calculating Cash to Close table as the customers have made a $3,000 deposit and the sellers are providing a credit of $12,450. We are also financing the closing costs for this transaction.
In order for the Cash to Close to equal $0, would I need to reduce the amount of Closing costs financed by the total of the deposit and Seller credits and also show $0 on the Down payment/Funds from Borrower and Funds for Borrower line items?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2201273 - 12/20/18 07:38 PM Re: Calculating Cash to Close w/ Seller Credit julesbok
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,956
Galveston, TX
This is a little hard to understand all the ins and outs on this transaction without seeing the entire CD. A construction hold back would not necessarily be shown on the CD, but the full amount of the improvement project/contract. What do you think is wrong with the cash to close table? Are you getting a cash to/from the borrower?
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#2201279 - 12/20/18 08:28 PM Re: Calculating Cash to Close w/ Seller Credit julesbok
julesbok Offline
Junior Member
Joined: Mar 2014
Posts: 47
OK
We're working on the LE, not CD. Just trying to get it to show $0 cash to close, so not sure how to back out the deposit and seller credits in the calculations for the Down Payment/Funds from Borrower and the Funds for Borrower line items. Do they not need to show as $0 under TRID 2.0?

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