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Reserves

Reserves

One of my conditions is to have reserves for two months from my own funds.. I have my rent due and this way I will be short on the amount of my reserves. I have money that came into my account for closing costs.. The amount I received is greater than the closing cost . But since it's not my fund what do I do.. Will my loan get declined
Message 1 of 5
4 REPLIES
Valued Contributor

Re: Reserves

Do you have a 401K account that you can take a loan out on to get the money? If the funds are not seasoned, they can't be used for a downpayment BUT I do think unseasoned funds can be used for closing costs/reserves. Have the "other" funds been in your account for at least 2 months?

If having 2 months reserves at closing is a condition for approval, yes your loan can be denied if you don't have the funds. If the "other" funds satisfy the condition and it is not a requirement for them to be seasoned, you should be OK. If they have to be seasoned, then you will need to get the extra money from your retirement/savings accounts or your paycheck.

When is the lender asking for the 2 months of reserves to be shown in your bank account?
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Message 2 of 5
Super Contributor

Re: Reserves

pay rent with the 'not your funds'

 

 

Retired Lender
Message 3 of 5
Established Contributor

Re: Reserves


DallasLoanGuy wrote:

pay rent with the 'not your funds'

 

 


This here!

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Message 4 of 5

Re: Reserves

Thank you everyone... just talked to my lender... She said everything is fine and not to worry so much.... Some of the money in the downpayment will be considered gift money ... So after I get the gift money that will be the reserves.. Hope this makes sense to anyone who has faced the same situation

Message 5 of 5