# loan # loan A financing agreement between a lender and a borrower, with its terms, amounts, rates and schedule. A loan is a financial agreement between a lender and a borrower, in which the lender provides the borrower with a certain amount of money or assets, and the borrower agrees to repay the loan over time with interest and/or fees. ## Why it matters The loan is the spine of the transaction. Parties reach it through relationship classes rather than through fields on it, which is what allows a loan to carry several borrowers, several properties and a changing set of participants without the class changing shape. Amounts and percentages are decimal by rule, and every property carrying money or a rate says so in its own name — the suffix law is what makes a property's type legible before its definition is read. ## In practice This class is the origination side. The `loan` in the property model is the recorded side: what a deed index shows filed against a parcel, which reflects what was recorded rather than a current balance. They are different classes in different models for that reason. ## Properties | Property | Type | Definition | | --- | --- | --- | | `amortization_type` | `enumeration` | Loan amortization type refers to the method used to calculate and pay off a loan over time. The two most common types of loan amortization are fully amortizing and partially amortizing. In a fully amortizing loan, the borrower makes regular payments (usually monthly) that include both principal and interest. Each payment reduces the principal balance of the loan, and over time the loan is gradually paid off in full. In a partially amortizing loan, the borrower makes regular payments that include both principal and interest, but the payments are not large enough to fully pay off the loan by the end of its term. As a result, at the end of the loan term, the borrower must either make a balloon payment to pay off the remaining balance, refinance the loan, or enter into another agreement with the lender. `adjustable_rate``fixed``gem``gpm``graduated_payment_arm``other``rate_improvement_mortgage``step` | | `appraisal_value` | `decimal` | Appraisal value indicates the estimated fair market value of a property determined by a professional appraiser. The appraisal process involves a comprehensive evaluation of the property, including its physical characteristics, location, and current market conditions. The appraiser will consider factors such as the size and layout of the property, the condition of the interior and exterior, any upgrades or renovations made to the property, and comparable sales in the area. | | `base_ltv_value` | `decimal` | Base LTV (Loan-to-Value) ratio is the ratio between the total amount of the loan and the appraised value of the asset that is being used as collateral for the loan. The Base LTV is the initial ratio established at the time of the loan origination, which determines the maximum loan amount that can be borrowed based on the value of the collateral. | | `borrower_paid_mi` | `boolean` | Borrower-paid mortgage insurance (BPMI) is a type of insurance that mortgage borrowers can purchase to protect their lender in the event that they default on their mortgage payments. BPMI is typically required for borrowers who make a down payment of less than 20% of the home's purchase price. BPMI is different from other types of mortgage insurance because the borrower is responsible for paying the premiums, rather than the lender. The premiums can be paid upfront as a lump sum, or they can be added to the monthly mortgage payment. | | `buydown_amount` | `decimal` | A mortgage buydown is a financing technique in which the borrower or a third party pays an upfront fee to lower the interest rate on a mortgage loan for a period of time, typically the first few years of the loan term. The amount of the buydown is typically calculated as a percentage of the loan amount. The mortgage buydown amount is the total amount of money that is paid upfront to lower the interest rate on the mortgage loan. | | `buydown_type` | `enumeration` | A mortgage buydown is a type of mortgage financing in which the borrower or a third party pays an additional fee, known as points, to the lender in exchange for a lower interest rate on the mortgage loan. The buydown can be a temporary or permanent reduction of the interest rate on the mortgage loan. There are two main types of buydowns: temporary and permanent. `None``OneOne``OneZero``ThreeTwoOne``TwoOne` | | `day_one_certainty_indicator` | `boolean` | Day 1 Certainty is a program offered by Fannie Mae, a government-sponsored enterprise (GSE), to help lenders streamline the mortgage loan origination process and reduce risk. The program aims to provide lenders with greater confidence in the underwriting process and reduce the need for additional documentation and manual processes. | | `downpayment_amount` | `integer` | Down payment amount refers to the amount of money that a borrower pays upfront to purchase a property, before obtaining a mortgage loan. The specific amount required can vary depending on factors such as the borrower's creditworthiness, the type of loan, and the lender's requirements. In general, a larger down payment can help to reduce the amount of the mortgage loan needed and can lead to lower monthly payments and interest charges over the life of the loan. | | `downpayment_percentage` | `decimal` | Down payment percent is the percentage of the purchase price of a property that a borrower pays upfront as a down payment towards the mortgage loan. The down payment percentage is an important factor in determining the loan-to-value (LTV) ratio, which is the ratio of the loan amount to the appraised value of the property. A higher down payment percentage means a lower loan amount and a lower LTV ratio, which may result in a lower interest rate and better loan terms. | | `dti_value` | `integer` | Debt-To-Income (DTI) ratio is a financial ratio that compares a borrower's total monthly debt payments to their gross monthly income. It is used by lenders to evaluate a borrower's ability to repay a loan, particularly a mortgage loan. To calculate the DTI ratio, the borrower's total monthly debt payments, including things like credit card payments, car payments, student loans, and other loan payments, are divided by their gross monthly income (pre-tax income). The resulting ratio is expressed as a decimal. A DTI ratio of .43 or lower is generally considered a good target for most borrowers. | | `end_date` | `date` | End date refers to the date on which a rental agreement or lease ends and the tenant is no longer obligated to pay rent for the property or space. This date is typically specified in the rental agreement or lease, and it marks the end of the tenant's legal right to occupy the property. | | `interest_only` | `boolean` | Interest-only in a loan is a type of loan where the borrower is required to pay only the interest on the loan during the initial period of the loan, which is typically for a fixed number of years. During the interest-only period, the borrower is not required to pay down the principal amount of the loan, which means that the loan balance remains the same. After the interest-only period ends, the borrower is required to make full payments that include both principal and interest until the loan is fully paid off. This means that the borrower will have to make higher payments compared to the interest-only period, as the principal amount must be paid down over the remaining loan term. | | `loan_amount` | `integer` | Loan amount refers to the total amount of money that a borrower borrows from a lender to purchase a property. This amount is typically based on the purchase price of the property, minus any down payment that the borrower is able to make. | | `loan_identifier` | `string` | A loan identifier, also known as an MLI or loan number, is a unique identification number that is assigned to a specific mortgage loan. It is typically used by lenders and servicers to track and manage mortgage loans throughout the life of the loan. | | `loan_purpose` | `enumeration` | Loan purpose refers to the reason or purpose for which a borrower is obtaining a loan. When applying for a loan, borrowers are typically required to specify the purpose of the loan to the lender. The loan purpose helps the lender assess the borrower's creditworthiness and determine whether the loan is a good fit for the borrower's needs. `mortgage_modification``other``purchase``refinance` | | `loan_role_type` | `enumeration` | Loan role type helps lenders understand a borrower's ability to repay a loan and determine loan terms and conditions. There are three types of loan roles: subject, related and historical. A subject loan is the loan that is being evaluated or underwritten by the lender. A related loan is a loan that is related to the subject loan in some way, such as a second mortgage or a home equity line of credit (HELOC) that is taken out on the same property. A historical loan is a loan that has already been repaid or closed. `historical``subject_loan``related_loan` | | `loan_status` | `enumeration` | Loan status refers to the current state or condition of a loan. It indicates whether the borrower is up-to-date with their payments, in default, or in some other stage of the loan process. `lead``processing``pre_qualify``registered``pre_approval``application_taken``broker_initial_submission``prospect``initial_submission``approved``suspended``pre_deny``broker_condition_submission``condition_submission``clear_to_close``denied``withdrawn``not_accepted``incomplete``rescinded``closed``funded``post_closing``in_shipping``purchased``servicing` | | `loan_status_date` | `date` | Loan status date indicates the date on which the status of a loan was last updated or changed. It is the date when the loan's status was evaluated and recorded by the lender or servicer, and can indicate whether the borrower is up-to-date on their payments, delinquent, or in default. | | `loan_term` | `integer` | Loan term refers to the length of time over which a borrower must repay a loan to the lender. It is typically expressed in months or years and is agreed upon at the time the loan is originated. | | `loan_type` | `enumeration` | Loan type refers to the specific type of loan that a borrower obtains from a lender, such as a personal loan, auto loan, or student loan. The loan type determines the terms and conditions of the loan, including the interest rate, repayment period, and the amount borrowed. `conventional``fha``va` | | `ltv_value` | `decimal` | Loan-To-Value (LTV) ratio is a financial ratio that compares the amount of the loan to the appraised value of the property being purchased or refinanced. To calculate the LTV ratio, the loan amount is divided by the appraised value of the property. The resulting ratio is expressed as a decimal. In general, a lower LTV ratio is considered better, as it indicates that the borrower has a larger equity stake in the property, and may be less likely to default on the loan. | | `monthly_payment` | `decimal` | A mortgage monthly payment is the amount of money that a borrower pays each month to repay the mortgage loan, which includes both the principal and interest on the loan. In addition to the principal and interest, the mortgage monthly payment may also include other expenses such as property taxes, homeowners insurance, and mortgage insurance, depending on the loan type and requirements. These additional expenses are often collected and held in an escrow account by the lender, who then pays them on behalf of the borrower. | | `mortgage_type` | `enumeration` | Mortgage type refers to the specific type of mortgage loan that a borrower obtains to finance the purchase or refinance of a property. There are several different types of mortgage loans, each with its own set of features, eligibility requirements, and interest rates. `conventional``fha``local_agency``other``public_and_indian_housing``state_agency``usda_rural_development``va` | | `mortgage_value` | `decimal` | Mortgage value refers to the amount of money that is borrowed by a borrower to purchase or refinance a property using a mortgage loan. It is the principal amount of the mortgage loan that is used to finance the purchase of the property. The mortgage value is typically determined by the purchase price of the property or its appraised value, whichever is lower. | | `note` | `string` | A note is a legal document that outlines the terms of the loan between the borrower and lender. It is also known as a promissory note. The note contains the borrower's promise to repay the loan, the interest rate, the repayment terms, and other details about the loan, such as the maturity date and any prepayment penalties. | | `note_rate_percentage` | `decimal` | Note rate percent refers to the interest rate specified in the promissory note or loan agreement between a lender and borrower. The note rate is the annual percentage rate (APR) that the borrower will pay on the loan amount. | | `occupancy` | `enumeration` | Occupancy type refers to the way in which a property is used or occupied by its owner or tenant. Occupancy type is used in determining the terms of a mortgage or loan and the level of risk associated with a property. `primary_residence``second_home``investment``other` | | `prepayment_penalty` | `integer` | A prepayment penalty is a fee charged by some lenders if you pay off your loan before the end of its term. Essentially, it's a penalty for paying off your debt early. Lenders use prepayment penalties to discourage borrowers from paying off their loans too quickly, which can reduce the lender's profits by reducing the amount of interest they can collect. The penalty is usually a percentage of the remaining loan balance or a certain number of months' worth of interest payments. | | `program_period_type` | `enumeration` | Loan program period type refers to the period of time associated with the loan program. `period_fixed_10_years``period_fixed_15_years``period_fixed_20_years``period_fixed_30_years``period_arm_5_years``period_arm_7_years``period_arm_10_years` | | `start_date` | `date` | An employment start date refers to the date on which an individual begins working for an employer in a new job or position. | ## Referenced by - `finance_relation` - `mortgage_application`