Posted:
#26
Bump for info
Gambling charges when applying for home loan?
Posted:
#28
Thanks Barry..
I guess my last question would be what if the deposit/withdrawals have descriptions linked to websites like:
https://helponlinesupport.net
https://adbsupport.net
https://payitltd.com
There's some more on there but they are all sites like this? How can that be explained if money is going out or coming in with those sites attached?
Thanks Barry!
Posted:
#29
Found this as well on rivals...
You're fine
I'm a loan officer. You guys really just say shlt and hope it sticks. From the Fannie Mae Selling Guide below. This is the most popular guideline for 1st mortgages. Hit the link and go to page 445.
Evaluating Large Deposits
When bank statements (typically covering the most recent two months) are used, the lender
must evaluate large deposits, which are defined as a single deposit that exceeds 50% of the total
monthly qualifying income for the loan.
Examples
• Scenario 1: Borrower has monthly income of $4,000 and an
account at ABC Bank with a balance of $20,000. A deposit of
$3,000 is identified, but $2,500 of that deposit is documented as
coming from the borrower's federal income tax refund.
Only the unsourced $500 [the deposit of $3,000 minus the
documented $2,500] must be considered in calculating whether
it meets the large deposit definition.
The unsourced $500 is 12.5% of the borrower's $4,000 monthly
income, falling short of the 50% definition of a large deposit.
Therefore, it is not considered a large deposit and the entire
$20,000 balance in the ABC Bank account can be used for
underwriting purposes.
• Scenario 2: Using the same borrower example, a deposit of
$3,000 is identified, but only $500 is documented as coming
from the borrower's federal income tax refund, leaving $2,500
unsourced.
In this instance, the unsourced $2,500 is 63% of the borrower's
$4,000 monthly income, which does meet the definition of a
large deposit.
But it doesn't sound like you need the money anyways. Hit the link
I'm a loan officer. You guys really just say shlt and hope it sticks. From the Fannie Mae Selling Guide below. This is the most popular guideline for 1st mortgages. Hit the link and go to page 445.
Evaluating Large Deposits
When bank statements (typically covering the most recent two months) are used, the lender
must evaluate large deposits, which are defined as a single deposit that exceeds 50% of the total
monthly qualifying income for the loan.
Examples
• Scenario 1: Borrower has monthly income of $4,000 and an
account at ABC Bank with a balance of $20,000. A deposit of
$3,000 is identified, but $2,500 of that deposit is documented as
coming from the borrower's federal income tax refund.
Only the unsourced $500 [the deposit of $3,000 minus the
documented $2,500] must be considered in calculating whether
it meets the large deposit definition.
The unsourced $500 is 12.5% of the borrower's $4,000 monthly
income, falling short of the 50% definition of a large deposit.
Therefore, it is not considered a large deposit and the entire
$20,000 balance in the ABC Bank account can be used for
underwriting purposes.
• Scenario 2: Using the same borrower example, a deposit of
$3,000 is identified, but only $500 is documented as coming
from the borrower's federal income tax refund, leaving $2,500
unsourced.
In this instance, the unsourced $2,500 is 63% of the borrower's
$4,000 monthly income, which does meet the definition of a
large deposit.
But it doesn't sound like you need the money anyways. Hit the link
Posted:
#31
I am going through this right now. My loan is FHA. I eventually said forget my entire account and I will be gifted $13,000 by my father. I had to draft up a letter for him to sign to give me the money. Then I will be paying him back after we close.
When trying to use my own money, I described the money as "commissions from a gaming website." They then requested my tax returns from the last 2 years to prove that there was no additional income and that I did not have a 2nd job. Also, my friends and I transfer back and forth money all the time. I had to explain $100 transfers which were from fantasy football or simple things like loans from playing poker. They wanted a full paper trail for every deposit into my checking account. It was such a mess that luckily, my family was able to help just go around this process.
Do not deposit any additional funds into your account until the day you close.
Posted:
#33
Quote Originally Posted by coleon:
They are only looking for overdrafts that would indicate that you can't manage your money. No Worries if you have none... If you do they will want a VERY good explanation as to why it happened.
They are only looking for overdrafts that would indicate that you can't manage your money. No Worries if you have none... If you do they will want a VERY good explanation as to why it happened.
Well, we have two bank accounts. Mine, that one's a mess. But my wife's, it's a joint savings so that's what we are using. Fvck, now I'm getting worried.
Posted:
#35
Quote Originally Posted by OGHowie282:
Bank of America did not care about any of my expenses, only deposits. Also, I have a good credit score.
Bank of America did not care about any of my expenses, only deposits. Also, I have a good credit score.
I wish they cared if people could manage their money, but they really have 1 goal and that is getting you a loan. They get paid when you get approved.
That isn't true any more, but it was true 6 years ago.
Posted:
#36
Quote Originally Posted by OGHowie282:
Bank of America did not care about any of my expenses, only deposits. Also, I have a good credit score.
Bank of America did not care about any of my expenses, only deposits. Also, I have a good credit score.
I wish they cared if people could manage their money, but they really have 1 goal and that is getting you a loan. They get paid when you get approved.
This is the mindset of the banks on every home loan I've ever dealt with. They wanna see consistent money coming in, they don't care about what's going out.
Posted:
#37
They want to know where the deposit comes from becasue having a large savings could help lower the interest rate and also qualifies as cash reserves (so the bank knows you have money in the bank in case you lose your job, reserves means you can still afford your mortgage). Having cash reserves helps you and the bank feel at ease when getting you qualified. They need to know where that money comes from becasue if it's a loan they know that money wont stay with you and will likely disregard that cash. Some people would write a fake deposit into the bank ATM, saying they deposited $20,000 instead of $2,000 (oops pressed an extra 0, my bad). The ATM machine gives you a receipt for a 20k deposit and inflates your "cash reserves: which gives you a better int rate. The bank catches the mistake a day or two later and credits your act 2k instead of the 20k but meanwhile the mortgage lender has that 20k deposit.
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