Uniform Residential Loan Application (Form 1003) (2024)

FAQs

What is the 1003 uniform residential loan application? ›

The 1003 loan application, or Uniform Residential Loan Application, is the standardized form most mortgage lenders in the U.S. use. The form is required by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) for mortgages that they purchase from lenders.

Collects your personal information, income, and employment. Section 2. Financial Information – Assets and Liabilities. Collects information about your financial assets, personal financial obligations, and debts you owe.

Known as the Uniform Residential Loan Application (or the 1003, after its Fannie Mae form number), this five-page document provides a lender with the basic information needed to approve a buyer.

Previous Employment/Self Employment and Income – Provide at least 2 years of current and previous employment and income. Complete this section if you have received income from your current job(s) or self-employment(s) for less than two years.

Eligibility Assessment: The information provided on the 1003 form helps lenders assess the borrower's eligibility for a loan. Lenders evaluate factors such as income, employment history, and creditworthiness to determine the borrower's ability to repay the loan.

A complete, signed, and dated version of the final Form 1003 must always be included in the loan file. The final Form 1003 must reflect the income, assets, debts, and final loan terms used in the underwriting process.

All loans with an application date on or after March 1, 2021 and purchased by Fannie and Freddie are required to include the redesigned URLA. The GSEs will continue to accept legacy loans (applications prior to 3/1/21) with the old form 1003 until March 1, 2022.

What information is reported? HMDA requires that for each application or loan, institutions report information about the loan application, the property, and the applicant. For most applicants, this includes reporting the applicant's race, ethnicity, sex and income.

The specific update included the addition of a disclosure relating to applicant demographics, intended to improve data collection for housing-related lending practices and ensure compliance with Home Mortgage Disclosure Act (HMDA) requirements.

What is the highest back end DTI qualification? ›

Ideally, your front-end HTI calculation should not exceed 28% when applying for a new loan, such as a mortgage. You should strive to keep your back-end DTI ratio at or below 36%.

The alternative names section on the 1003 loan application is used to list any other names that the borrower might have used in the past or might be known by, which can include maiden names, aliases, or other legal names.

According to the compliance department, the language at the top of the 1003 that requires a signature is used only when the borrowers are applying for joint credit. Typically, unmarried persons cannot apply for joint credit, and as such, much individually submit separate loan apps (1003).

In addition to your legal name, Social Security number and date of birth, you'll need two years' worth of address information. Your finances. Lenders need info about your income, assets and monthly debt payments. They'll also need information about anything you're legally required to pay, like alimony or child support.

Lenders in the U.S. use the 1003 Form to evaluate potential applicants, including borrowers seeking refinances, construction-to-permanent loans, conventional loans, VA, FHA, and USDA mortgage loans.

Filling out a 1003 form is the first step you'll take to getting preapproved for a mortgage. Officially known as the uniform residential loan application — URLA for short — the 1003 application gives your lender the information required to determine whether you qualify for the loan you're applying for.

Expert-Verified Answer. In the 1003 loan application, the alternative names section includes a maiden name, nicknames, and the suffix 'Junior'. The term 'Senior' is not typically an alternative name but denotes a generational distinction in a family.

Uniform Mortgage Data Program (UMDP) is an effort undertaken jointly by Fannie Mae and Freddie Mac at the direction of the Federal Housing Finance Agency to enhance mortgage data quality and standardization.