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Valued Contributor
slyhouse08
Posts: 2,340
Registered: ‎04-08-2008
0

Gift from Business...or...Transfer Funds

I posted something similar to this a few months ago....I plan on applying for a home loan at the begininning of Sept...I know lenders are big on reserves...I own a small sole proprietor business...and was wodering about the funds from that...so if I have say $500 in my personal checking account...and $2500 in my small business checking account...show I transfer the money from my business checking to my personal checking...for my reserves...or wait...and do the gift thing...I know family members can give money as gifts...but can my business give as a gift...I plan on going FHA...630 mid score...new build...
Super Contributor
ShanetheMortgageMan
Posts: 8,254
Registered: ‎09-28-2007
0

Re: Gift from Business...or...Transfer Funds

Actually doing a transaction right now on this.  Basically what this is referred to is "corporate funds".
 
An applicant may use corporate funds for money to close if the following conditions are met:
• The applicant owns at least 51% of the stock in the corporation.
• A current balance sheet is provided indicating sufficient cash assets.
• Funds are verified on deposit for the corporation.
• Verification of receipt of the funds by the applicant, prior to closing.
• The file contains a letter from the corporation’s CPA stating the company is capable of disbursing the funds without impairing the operation of the company.
• A copy of the Corporate Resolution indicating the applicant will be permitted to withdraw funds from the corporation.
Valued Contributor
slyhouse08
Posts: 2,340
Registered: ‎04-08-2008
0

Re: Gift from Business...or...Transfer Funds

Thanks...so don't transfer anything before applying...just wait...
Super Contributor
ShanetheMortgageMan
Posts: 8,254
Registered: ‎09-28-2007
0

Re: Gift from Business...or...Transfer Funds

You can transfer after approval or before, but will need to document all transactions with paperwork.
Valued Contributor
slyhouse08
Posts: 2,340
Registered: ‎04-08-2008
0

Re: Gift from Business...or...Transfer Funds

Ok...thanks!

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