A week before closing and the deal is in danger

[Anonymous]

FICO scores are 760-777, house appraises at $160K, looking to borrow $100K. Zero debt, Ratios are 18%+/- 2%. A wewek before closing and the underwriter (the third person at this lender to go over this file) wants sourcing on $15,000 in deposits from February to April because in April we put down $500. The $20,000 we put down in July has been sourced, this is a new and different documentation request.

The problem is $6,000 of it was transferred from a different account and the remaining $9,000 is gross receipts from a business I own but am not using to qualify because of lack of long term profitability (I have always reinvested the profits to grow the business, 2017 is the first time I took money out of the business). I have sufficient other income to bring my ratios to around 18% and this income is proven and documented.

Why do I need to document $15,000 in bank deposits to justify a $500 down payment?

[Anonymous]

To make sure you do not have any undocumented loans that may be the source to the funds. Seems like you have nothing to worry about if you provide same explanation to underwriter

[Anonymous]

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@Anonymous wrote:
To make sure you do not have any undocumented loans that may be the source to the funds. Seems like you have nothing to worry about if you provide same explanation to underwriter

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I am finding that whenever an Underwriter asks for an "explanation" that is a code word for "no loan". Why is it they always wait for the last minute to spring this? Today is the 3-days-from-closing date where I am supposed to have copies of the loan documents. Today is when the underwriter finally saw that the land is titled in a Revocable Trust that I set up many years ago, and all of a sudden THAT is now an issue. The Trust owns the land free and clear. The Trust bought the land. The house is 99% completed and this *%^$*(&^%$ is looking for ways to NOT make the loan. None of this is news - I have been up front about the Trust since day one.

[Anonymous]

Switch to a vfr  plan... 

So you own the property in a trust, the house is essentially built on said property. You are effectively getting a cash out finance at standard rates... Did i miss something? It sounds to me as if you have everything going along swimmingly. Where is the problem? If the lo bails, get another one. They are a dime a dozen. Why the upset?