Gifts and grants are common sources of funds that borrowers use for down payments and closing costs. This guide shows you how to add these assets to a loan file in Sonar.
Steps to Add a Gift or Grant
Open your loan file
Navigate to the Assets tab
Click Add Asset
Select the appropriate asset type:
Grant
Gift of Equity
Cash Gift
Enter the required information:
Account Number (optional)
Amount - The dollar amount of the gift or grant
Source - Where the funds are coming from (e.g., "Community Non-Profit", "Parent", "State Housing Authority")
Click Save to add the asset to the loan file
Note: Both Fannie Mae and Freddie Mac recognize only the following source types. Any other source you enter will be submitted to the AUS as Other.
Recongized Source Types
Community Non-Profit
Employer
Federal Agency Lender
Local Agency
Other
Parent
Relative
Religious Non-Profit
State Agency
Unmarried Partner
Unrelated Friend
Non-Originating Lender
Note: Freddie Mac (LPA) If the gift or grant will be used as a down payment source, you must toggle on Downpayment Source. This ensures Freddie Mac LPA reads the file correctly and properly accounts for the funds in the underwriting analysis.