Hello, new to the boards, ive been researching my "possible scare" for the last few weeks. Only to find nothing regarding my exact issue, im sure it exist but google is not helping. Anyways to my question:
We are applying for a mortgage after being gifted 80k for a downpayment for my wifes graduation from her grandma. I had no real time to prep my finiances to get everything in order before we were off looking at houses, and signing a contract on a home we fell in love with. She has been in school for the last 5 years, and recently accepted an offer for a local hospital in dallas. The LO has ok'd this by saying the school if your major is in the field you are going in, can count as work history. My one issue is with seasoned funds, closing cost/downpayment are all covered under our gift (100k but we are keeping 20 of it to furnish/close). Prior to mid decemember I had not had a company credit card, and did alot of petty cash reimbursments/cash deposits somewhere in the neighborhood of 700-1500 a month. Are they even going to look at these funds considering the gift covers everything (downpayment/closing costs).
I appreciate that, my actual question was more about the seasoned funds (cash deposit/petty cash reimbursments) I know I can use the gift money for Down Payment and Closing costs, and I dont need to bring my own money due to the fact its 30%. I just dont know if im going to be asked to explain those deposits, or if it wont be an issue due to the fact the funds are sourced through the gift already.
I typically run 4-7 K through my corporate card a month. I am reimburst via my personal checking and then pay AMEX directly.
I had to write a short letter stating this was the reason for the fund movement. The underwriter did not care.
It's been my experience so far that the underwriter is just looking for explanations, not for reasons to deny you. Meaning, they just want to know what's going on, so if you can explain it and it makes sense, it shouldn't be a problem. In this situation, it sounds like the transactions are legit so it should be ok.
I could be totally wrong about this.
But I think they want the min down payment to come from your own funds. Anything above that can come from anywhere.
Conventional purchases require the buyer have a minimum of 5% of the purchase price as their down payment.
The buyer must also qualify for monthly mortgage insurance with less than 20% down.
The minimum 5% must be the buyer's own funds.
Once the first 5% of the buyer's own funds are verified, a gift can be used for the remaining down payment and closing costs.
If the buyer puts 20% or more down, the entire down payment may be a gift.