Adjustments and Other Credits is the total amount of all items in the Loan Costs and Other Costs tables that are paid by persons other than the loan originator, creditor, consumer, or seller, together with any other amounts that are required to be paid by the consumer at closing pursuant to the contract of sale (if any), disclosed as a negative number.
Examples of items that are paid by persons other than the loan originator, creditor, consumer, or seller include:
- Gifts from family members, and
- Credits from a developer or home builder to be applied to items in the Loan Costs and Other Costs table.
Adjustments and Other Credits includes funds provided to the consumer from the proceeds of subordinate financing, local or State housing assistance grants, or
other similar sources.
Examples of amounts to be paid by the consumer at closing pursuant to the contract of sale include:
- Charges for personal property to be acquired by the consumer,
- Prorations for property taxes, and
- Prorations for homeowner’s association dues.
Adjustment and Other Credits is reduced by the amount of any such additional charges.
See page 2 of sample loan estimate below:
Visit Consumer Financial Protection Bureau's Loan Estimate Explainer resource to learn more.