Disclosing a simultaneous second mortgage

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Question:

If we use the standard Closing Disclosure form for a transaction involving a seller, do we have to use the standard form for the Closing Disclosure for a simultaneous subordinate loan that finances the down payment?

Answer:

No. You can use a Closing Disclosure with the “optional alternative disclosures” of the Costs at Closing table on page 1 and of the Calculating Cash to Close table on page 2 if the Closing Disclosure for the primary loan includes all of the seller’s costs for the real estate transaction. No seller costs can appear on the Loan Estimate for the simultaneous subordinated loan.
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Learn more about John Burnett’s webinar
Closing Disclosures under TRID 2.0