Originate a BHPH loan
After a BHPH deal is sold, set the terms and generate the amortization schedule for the in-house loan.
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Originating a loan turns a sold in-house (BHPH) deal into a serviceable loan account. You set the terms, the calculator shows a live amortization schedule, and creating the loan saves that schedule and the payment amount.
Before you start
- The deal type must be In-house (BHPH).
- The deal must already be marked sold. Until then the deal's In-house financing card shows "Mark this deal sold to originate the in-house loan."
- The deal must not already have a loan. If it does, opening the calculator sends you straight to the existing account instead.
Only an Owner, Manager, or Accounting user can originate a loan (it books money). A Sales user is blocked with "Only owners, managers, or accounting may record loan money."
Open the calculator
- Open the sold BHPH deal.
- Find the In-house financing card.
- Click Originate in-house loan. This opens the Originate in-house loan screen.
Set the amount financed
The Amount financed card sets the principal. The sale price and any deal taxes/fees pre-fill from the deal.
- Sale price: pre-filled from the deal's selling price.
- Taxes & fees financed: pre-filled from the deal's tax + doc fee + other fees. Zero it out if you collect those up front instead of financing them.
- Cash down: the down payment collected now.
- Trade allowance: credit for any trade-in.
Amount financed = sale price + taxes & fees financed − cash down − trade allowance − pickup payments. It is always calculated for you; you never type it directly. It must be greater than zero or the loan won't create.
Set the terms
The Terms card drives the schedule.
- Interest rate %: the yearly rate the schedule is built at (e.g.
21.000). Defaults to 21%. - Number of payments: how many installments (the term). Defaults to 24.
- Frequency: Weekly, Bi-weekly, or Monthly. Defaults to Monthly.
- Interest method: Simple interest or Zero interest. Defaults to Simple interest.
- Day count: Actual / 365, Actual / 360, or 30 / 360. Defaults to Actual / 365. New-loan schedules use this basis between the contract date and each actual payment date.
- Contract date: the day interest starts. Defaults to today.
- First payment date: defaults to one full period after the contract date: a month, two weeks or a week, by frequency. Until you pick a date yourself, it moves when you change the contract date or the frequency. It must be after the contract date.
The APR on the contract can differ from the interest rate. The interest rate and selected day-count basis determine accrued interest. The contract APR is calculated from the projected payment dates and amounts, including the final installment. These rates can differ even when the first payment is exactly one month after the contract date. The preview shows the APR the contract will print.
With Simple interest, interest accrues on the actual unpaid balance using the selected day-count basis. The schedule on screen assumes every payment arrives exactly on its due date and adjusts the final payment to clear the projected balance. Paying early or late can change actual interest and the final amount due. Loans already created retain their saved schedules and disclosed figures.
Only the methods and frequencies the engine fully supports are offered: Simple interest / Zero interest, and Weekly / Bi-weekly / Monthly. Precomputed interest and semi-monthly are not available.
Late fees and grace (optional)
The Late fees & grace card sets servicing rules.
- Grace period (days): days after the due date before a payment counts as late. Defaults to 10.
- Late fee: None or Flat amount. Choose Flat amount to enter a fixed dollar Late fee amount.
Pickup payments (deferred down)
A pickup payment is a piece of the down payment the buyer pays later (a "deferred down").
- Click Add in the Pickup payments (deferred down) card.
- Enter a Due date and an Amount.
- Repeat for each scheduled pickup (up to 24).
Pickups are pre-counted in the principal. Each one lowers the amount financed, just like cash down. You collect them later from the loan account, not at origination.
Preview, then create
The Loan preview panel on the right updates live as you type.
- Check the Payment amount, the APR on the contract, Amount financed, Finance charge, Total of payments, and Maturity date.
- Scroll the schedule table to review each installment (#, Due, Payment, Principal, Interest).
- When the numbers look right, click Originate loan.
- You'll see "Loan originated." and land on the new loan account page.
Originating saves the schedule and payment amount as the contract. The core money fields are set at creation, so set them correctly up front. There is no "edit terms" path afterward.
What gets created
- A loan with its own loan number, found under Loans.
- The full amortization schedule (one row per installment).
- Any pickup payments you added.
- A starting principal balance equal to the amount financed.
FAQ
Why can't I see the "Originate in-house loan" button?
The deal must be an In-house (BHPH) deal that is marked sold. A finance, cash, or wholesale deal won't have it, and a pending BHPH deal shows "Mark this deal sold to originate the in-house loan." instead.
Why does opening the calculator jump me to an account?
That deal already has a loan. Each deal can have only one in-house loan, so the page redirects you to the existing account.
Why won't the loan create? It says "Amount financed must be greater than zero."
Your cash down, trade allowance, and pickups together cancel out the sale price plus financed taxes/fees. Lower the down/trade/pickups or raise the financed amount so the amount financed is positive.
Why is the APR on the contract different from the rate I typed?
The interest rate determines accrual under the selected day-count basis; the contract APR reflects the complete projected payment dates and amounts. Calendar lengths, the first payment date and the adjusted final payment can make them differ. The contract prints the APR shown in the preview. The loan page shows both: APR (what the contract printed) and Interest rate.
Why won't the loan create? It says "The first payment must be after the contract date."
The first payment date is on or before the contract date. Move it later; one full period after the contract date is the usual choice.
Can I change the APR or payment amount after creating the loan?
No. The terms become the contract at origination. There is no edit-terms path, so set the terms correctly before you click Originate loan. (Owners and managers can later change the loan's status from the account, but not its terms.)
Is the final payment different from the others?
Yes, it can be. Regular payments use the level payment calculation. The last scheduled payment clears the principal and interest projected from the selected day-count basis and due dates, including rounding. The preview and contract show the different final amount. For $16,525 at 21% over 24 monthly payments, dated October 17, 2026 with the first payment November 17, regular payments are $849.15; the projected final payment is $852.75 under Actual / 365 or $923.00 under Actual / 360. The live payoff can still change if payments arrive on different dates.
Can a salesperson originate the loan?
No. Originating a loan books money, so it's limited to Owner, Manager, or Accounting users.