Mortgage Cadence User Guide Reserving a VHDA Down Payment Assistance Grant

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1 Purpose Mortgage Cadence User Guide Reserving a VHDA Down Payment Assistance Grant Link to Mortgage Cadence This quick reference guide provides a step-by-step list of actions to reserve a VHDA Down Payment Assistance (DPA) Grant on an existing loan. Points to remember about a DPA Grant: An eligible first mortgage must be locked prior to reserving the Grant. Not every VHDA first mortgage is eligible to be used in conjunction with the VHDA DPA Grant. Review the Program Guidelines to determine first mortgage eligibility. Only those with security level 1 (typically Admins), level 2 (typically Underwriters), and level 3 (typically Secondary) have the ability to reserve or edit a Grant. The other security levels will have read only access to the Grant information. Step Reserving a VHDA DPA Grant 1 After successfully locking the first mortgage (Reference user guide Locking a Loan Interest Rate), select the desired first mortgage loan to which a DPA Grant reservation is to be added by searching in the Pipeline Vista. RESERVING A VHDA DPA GRANT 1

2 2 Enter the Appraised Value on the Loan Summary Information C screen. If the actual appraised value is unknown at the time of reservation, the user can copy data from the Estimated Appraised Value. The lender or the lender s subsequent user must update the Appraised Value once the appraisal is obtained and the value is known, and ensure the DPA Grant amount is still acceptable. 3 Locate the Grant screen to the left: RESERVING A VHDA DPA GRANT 2

3 4 NOTE: The DPA Grant should not be reserved on the Loan Summary Information C screen. The reservation must be made on the Grant screen. The purpose of the DPA Grant information on the Loan Summary Information C screen is for user viewing only. Don t reserve DPA Grant on this screen! RESERVING A VHDA DPA GRANT 3

4 5 Complete the following in the Grant screen: Select the dropdown for Grant Name and change to DPA Grant and find the appropriate fiscal year (There should typically be only one year listed and the user can select it). Complete the Original Grant Amount. The maximum grant amount allowed is reflected on this screen; however, the user can confirm the maximum grant amount allowed in the Program Guidelines. If a calculation of either yields a dollar amount plus cents, the cents must be removed. Always round down by removing the cents. In the dropdown for Grant Status select Reserve/Reserved. 6 Save the loan. Once Save is clicked, the following is completed: Grant Flag Grant Reservation Date (the current date) Current Grant Amount (matching the Original Grant Amount) Grant Expiration Date will populate (with the first loan rate lock expiration date) Grant Status Change Date (the current date) RESERVING A VHDA DPA GRANT 4

5 7 Also, once the loan is saved: a Grant Award Letter and Obligation Letter will be automatically generated and will be distributed to the Secondary Contact. The letters will also be available in Attachments (titled Grant Award Letter). 8 The DPA Grant information carries over to the Loan Summary Information C screen. Reservation of the DPA Grant also results in the Yes box automatically being marked for Gift in the Delegated Submission screen. 9 The Grant screen appears to the user until the user clicks the Submit Closed Loan Package utility. Once that utility is run, the Grant screen no longer appears but a user can confirm there is a grant by going to the Loan Summary Information C screen where the status of the grant as Reserve/Reserved is housed and the Grant Flag is checked (as well as Grant letters found in Attachment). RESERVING A VHDA DPA GRANT 5

6 Changing a VHDA DPA Grant Amount 1 If a change in the grant amount is needed: Update the Current Grant Amount towards the bottom of the Grant screen. The Original Grant Amount cannot be changed this field is only entered upon initial entry. Any subsequent changes to the grant amount must be changed only in the Current Grant Amount field. Original Grant Amount can t be changed! 2 Click Save. After clicking Save, new grant letters will be generated and distributed to the Secondary contact, with the updated Current Grant Amount. The updated letters will also be available in Attachments. New RESERVING A VHDA DPA GRANT 6

7 Cancelling a VHDA DPA Grant Note: If your first mortgage is cancelled then the grant will automatically be cancelled when you click the Cancelled/Withdrawal Loan utility to cancel or withdraw your first mortgage. Step 1 If you need to cancel your grant but not the first mortgage, then go back to the Grant screen. 2 In the Grant Status dropdown, select Cancelled/Withdrawn. 3 Then select the appropriate reason in the Grant Cancellation Reason dropdown. RESERVING A VHDA DPA GRANT 7

8 If the reason for cancelling the grant is because the borrower is not eligible, but is still eligible for the first mortgage, reject the DPA Grant by following these steps: Step 1 In the Grant Status dropdown, select Rejected. 2 In the Grant Cancellation Reason dropdown, select the rejection reason (Exceeds Maximum Income or Not FTHB). RESERVING A VHDA DPA GRANT 8