What is the 1003 Form? Understanding the Uniform Residential Loan Application (URLA)

Applying for a mortgage? You’ll likely need to fill out the 1003 form, also known as the Uniform Residential Loan Application (URLA). The 1003 form provides your lender with essential details it needs to determine whether you qualify for a loan. Learn more about this important form, including the information you may need to provide.

Key takeaways

• The 1003 form is used by most mortgage lenders to help assess a borrower’s loan eligibility.
• The form asks various questions about your personal and financial situation, including your marital status, income and debts.
• If you apply for a loan through Fannie Mae or Freddie Mac, you must complete the 1003 form.

What is the 1003 form?

The 1003 form — also known as the Uniform Residential Loan Application — is a form designed by Fannie Mae and Freddie Mac, which are government-sponsored enterprises (GSE) that support the mortgage market. The form was created to collect the information lenders need to assess your eligibility for a mortgage loan.

The form also collects information required by the Home Mortgage Disclosure Act (HMDA) to ensure lenders are practicing fair lending and check for any patterns of discrimination.

The 1003 form at a glance

The 1003 form is divided into nine sections, listed in the table below. You can click a section name to learn about the information needed in each part of the form.

1003 form section by section

Section 1: Borrower information

This section asks for your personal information, including your employment, income and past addresses. The section is broken up into five subsections.

Section 1a: Personal information

• Your name, Social Security number, date of birth and citizenship status
• Whether you’re applying on your own or with someone else
• Your marital status and how many dependents you have
• Contact information including cell phone, work phone and email address
• Your current address and prior address, if you’ve lived at your current address for fewer than two years
• Whether you live rent-free, rent or own the home you currently occupy

Section 1b, 1c and 1d: Employment and income information

• Current employer information, including contact numbers and start date
• Any self-employment income
• Whether you’re employed by a family member or party to the mortgage transaction
• Your current and prior monthly income

Section 1e: Income from other sources

This subsection asks you to list any other types of income you receive, including:

• Alimony
• Capital gains
• Child support
• Department of Veterans Affairs (VA) compensation
• Interest and dividends
• Public assistance
• Social Security benefits

Section 2: Financial information — Assets and liabilities

This section asks about what you own (assets) and what you owe (liabilities). It includes four subsections.

Section 2a: Assets

In this subsection, you’ll list the assets you want the lender to consider when qualifying you for the loan. This may include:

• Checking and savings account balances
• Money market accounts
• Certificates of deposit (CDs)
• Mutual funds, stocks and bonds
• Retirement accounts
• Bridge loan proceeds
• Trust accounts
• Life insurance (cash value only)

Section 2b: Other assets and credits

Other assets you can include are:

• Proceeds from real estate to be sold on or before closing
• Proceeds from the sale of non-real estate assets
• Unsecured and secured borrowed funds

Credits may include:

• Earnest money
• Employer assistance
• Lot equity
• Relocation funds
• Rent credit
• Sweat equity
• Trade equity

Section 2c: Liabilities (except real estate)

This subsection asks about your liabilities, such as:

• Credit card balances
• Student loans
• Personal loans
• Any other revolving or installment debt

Section 2d: Other liabilities and expenses

This subsection asks about any other liabilities or expenses you have, including:

• Alimony
• Child support
• Separate maintenance
• Job-related expenses

Section 3: Financial information — Real estate

This section asks you questions about your current home, and whether you own any additional properties. It has three subsections.

Section 3a: Property you own

In this subsection, you must provide information that applies to your current home, including your:

• Address
• Property value
• Mortgage loans on the property
• Monthly mortgage payment
• Creditor name
• Monthly rental income
• Monthly insurance, taxes and HOA dues

If you own additional properties, you must answer the same questions in subsections 3b and 3c.

Section 4: Loan and property information

This section tells the lender why you’re applying for the loan and gives details about the home you’re buying or refinancing. It includes four subsections.

Section 4a: Loan and property

This subsection asks questions about your loan and property, including:

• Loan amount
• Loan purpose (purchase or refinance)
• Property address
• Property value
• Occupancy status (primary residence, second home, investment property or FHA secondary residence)
• How you intend to use the property (as a residence, business or mixed-use)
• Whether you’re financing a manufactured home

Section 4b: Other new mortgage loans

This subsection details any additional financing you’re taking out along with the mortgage you’re applying for, like a home equity line of credit (HELOC) or a home equity loan.

Section 4c: Rental income

In this subsection, you’ll provide the expected monthly rental income for the property you intend to purchase (whether it’s a multifamily home or an investment property).

Section 4d: Gifts or grants

This subsection asks you to provide details about any gifts or grants you’ve received or will receive for the loan, including gifts and grants from:

• A relative
• Your employer
• A nonprofit or local, state or federal government agency
• An unmarried partner

Section 5: Declarations

Section 5 asks for details about the property you wish to purchase, your funding and financial history. It’s split up into two subsections. Here are the basics of the questions covered in each subsection:

Section 5a: Property and funding

• Will you occupy the property as your primary residence?
• Do you have a family relationship or business affiliation with the property seller?
• Are you borrowing money for this real estate transaction (such as for your down payment or closing costs) that hasn’t already been disclosed?
• Have you applied or will you be applying for a mortgage on another property before closing this loan that hasn’t already been disclosed?
• Have you applied or will you be applying for any new credit (such as a credit card) before closing this loan that hasn’t already been disclosed?
• Will this property be subject to a lien that could take priority over the first mortgage lien?

Section 5b: Financial history

• Are you a co-signer or guarantor on any debt or loan that you haven’t disclosed?
• Are there any outstanding judgments against you?
• Are you currently delinquent or in default on any federal debt?
• Are you a party to a lawsuit in which you may have personal financial liability?
• Have you conveyed title to any property in lieu of foreclosure in the past seven years?
• Have you completed a pre-foreclosure sale or short sale where the property was sold to a third party and the lender agreed to accept less than the outstanding mortgage balance within the past seven years?
• Have you had a property foreclosed on in the last seven years?
• Have you declared bankruptcy within the past seven years (and, if so, which type)?

Section 6: Acknowledgments and agreements

This section includes pre-printed legal language, which says you agree and acknowledge that:

• You’ve provided accurate information and understand the penalties if you don’t
• The loan will be secured by the home you’re buying or refinancing
• The lender will order a home appraisal to verify the home’s value
• Electronic copies may be kept of all the records related to your loan
• You understand lenders are allowed to report any late payments to credit bureaus
• You can contact a HUD-approved counselor for advice if you have trouble making your mortgage payments
• You authorize the lender to use your information and share it with other parties to approve your loan

Section 7: Military service

This section asks questions related to you or a deceased spouse’s military service.

Section 8: Demographic information

In this section, you’ll be asked to provide information about your ethnicity, sex and race, though you can choose not to answer the questions. The purpose of collecting these details is to ensure that fair housing laws are followed.

Section 9: Loan originator information

This section is completed by your lender and includes the name of the loan originator, as well as their identification number and contact information.