Mortgage Loans

[MzKoli]

The hubby and I are going to apply for a VA loan in March. We make around 100k. My scores are all 760+ his current (1/13/13) myfico EQ is 657 ( a year ago it was 508). Our DTI is 15% and will be going down in Aug because of daycare costs. Ive been at the same job for 2.5 years him 7 or 8 years. I have 4.5k currently saved in my personal account , 2k in our joint and 2k in his savings. We wanna buy in the 200k-250k range. I am worried(about everything but this at the moment... lol) because his scores are on the lower side we'll need to show reserves. He only has 2k from his company stock program in an etrade acct and neither one of us has a 401k yet... My question i guess is two part 1) based on the provided info do y'all think we'll need reserves ? and 2) if so, i have a 2nd personal savings acount from back when i was in college were my grandma has been depositing $100 bucks a month and has never stopped( @ least 8 yrs maybe more) of course when i was in college i spent it as soon as it got there but for the last 3 yrs I havent touched it so there's a little over 3700 in there now. So technically she's been gifting me a $100 bucks for 36 months I just chose to save it. I know you can't use gift funds as reserves or is this different since 95% of it is "seasoned" , can i use it and just not count the last 2 deposits? Would she still have to write gift letters? I dunno my husband says I'm making too big a deal of it but as i said I worry about everything. Thanks !!!!

[VenomuRage]

From my understanding is once the funds have seasoned usually been in your account for 60 days or more they are yours and you shouldnt have to worry about anything not sure if you would be able to use the last two deposits but as far as i know is once those other deposits have seasoned you should be clear to use them...

[MzKoli]

Thanks! that's my thought I can count all seasoned funds but not the latest deposits...

[JM-AM]

Personally I would at this time stop depositing any gift funds, unless you want to go through the explanations over a few hundred dollars.

What I would do is save an additional 100.00 or more from your employment checks in your bank accounts, and cash the gift money and use for purchases in supermarkets, gas stations, etc etc...

Between all your savings as of present you should be okay with your reserves if its even an issue. Not all Lenders require reserves. The one thought that comes to mind if reserves becomes an issue is if you are paying the closing cost. If you are paying for the closing cost, most likely all your saved funds together will not cover closing cost and down payment.

[OilFieldEngineer]

The lender I am going through did not require any explanation for cash deposits less than $400. I play poker at least once or twice a week and had to write several letters explaining cash deposits over that but the smaller ones she said don't worry about it.

[MovingForward_2012]

I had a non payroll deposit this month for $240. It was a refund check for the overage paid by the dealership for my trade in from Nov. My UW requested a letter of explanation plus a image of the check deposited and a copy of the cashier's receipt that came with the check I deposited. So I think the amount requiring a LOE varies by lender.