Explaining recent large deposit

[joestay]

Well, my brother works "off the book" and he want's me to hold the cash for him.   He works at a restaurant and is paid cash only. That's why.  

[Anonymous]

Hiding money for your brother so he can keep it off the books (aka hide it from the IRS) is not something you want to have to explain to a loan officer.  I've never been asked for more that my two most recent bank statements so 60 days should be plenty.  However, given the shady nature of the money I wouldn't even deposit it.  Give it back to your brother and have him keep it in his sock drawer or under the mattress.

[Anonymous]

My UW asked for a paper trail for every single deposit into my account for the month before I applied for the loan through my closing. They were not asking for just "large" deposits, either. They wanted to know where a $10 deposit came from.

I think it depends on your situation. I'm pretty low income, so my LO explained that even small deposits are a significant percentage based on my income. Like if I made a couple hundred thousand a year, $500 wouldn't be much money but if I make $25,000 a year, $500 is a quarter of my monthly income.

If I were you, I'd tell my brother that I can't "hold" any money for him until you are done buying your house, especially not cash. Even if it was given to you as a gift, it could not be cash or there would be major issues. Don't risk it.