topic Re: Sourced and Seasoned Funds Question for an FHA loan in Mortgage Loans

Sourced and Seasoned Funds Question for an FHA loan

mccallb — Sat, 26 Apr 2014 20:48:53 GMT

I have a full time job that pays me plenty of money but I have also been doing contract work on the side to save for a house sooner. The contract work doesn't pay a huge amount, but has been consistent fr the last few months. I haven't claimed it on taxes before because this is my first year doing it.

My question is If I want a house thats $225,000 with FHA and the down payment is 7875, and I have 7500 available right now, and will have 9500 available in the middle of may, and around 11,000 June 1, when should I start the preapproval process? All the funds are obviously sourced, I just have several contracts coming due at the same time.

Thanks much

Re: Sourced and Seasoned Funds Question for an FHA loan

Anonymous — Sun, 27 Apr 2014 00:18:20 GMT

I would start the process now.. Because most of the time you take time finding the house. Also as long as you will have the well documented funds by closing then it shouldn't be a problem. The house process takes about 6 weeks to complete, so I think you can start now. Hopefully a mortgage guru will chime in.. I am still in the process of buying my 1st house.

Re: Sourced and Seasoned Funds Question for an FHA loan

Jamisonke — Sun, 27 Apr 2014 00:32:54 GMT

Our LO explained that the funds used for closing on our home needed to be seasoned for two months. The underwriter painfully scrutinized the deposits in our accounts and determined which would be excluded from use (even with a LOE). Basically, our cash deposits were out.

Re: Sourced and Seasoned Funds Question for an FHA loan

Jamisonke — Sun, 27 Apr 2014 00:34:45 GMT

BTW, it can go very quickly or may take some time. Mrs_hambright said she is still waiting to close and it has been 6 weeks. Our loan closed in 28 days. YMMV.

Re: Sourced and Seasoned Funds Question for an FHA loan

mccallb — Sun, 27 Apr 2014 04:27:56 GMT

Every dollar in my account is either from payroll direct deposit, or check paid by the company I do freelance work for. On the checks themselves it even contains the invoice number and a summary of my work in the memo section, so its definitely not from a family member, etc.

I guess I am definitely counting on the house hunt taking longer than it will for me to have my money, i just don't want to be in a bizarre situation where I have the perfect house, they accept an offer, and say, sorry, only 8000 of the 12000 you have counts, because it wasn't already in there. And then I either lose the house or do something ridiculous like have a family member "gift" me the money, and then pay them back once I close.

Re: Sourced and Seasoned Funds Question for an FHA loan

Anonymous — Sun, 27 Apr 2014 17:36:25 GMT

@mccallb wrote:
Every dollar in my account is either from payroll direct deposit, or check paid by the company I do freelance work for. On the checks themselves it even contains the invoice number and a summary of my work in the memo section, so its definitely not from a family member, etc.

I guess I am definitely counting on the house hunt taking longer than it will for me to have my money, i just don't want to be in a bizarre situation where I have the perfect house, they accept an offer, and say, sorry, only 8000 of the 12000 you have counts, because it wasn't already in there. And then I either lose the house or do something ridiculous like have a family member "gift" me the money, and then pay them back once I close.

That's fine then. If you can provide a source for the deposit, and it isnt cash, you don't need to worry. Just have your paystubs and invoices ready to provide so they quickly verify source of funds.

They're trying to make sure that you're not taking out loans prior to the closing.

Re: Sourced and Seasoned Funds Question for an FHA loan

DallasLoanGuy — Sun, 27 Apr 2014 18:29:47 GMT

now is fine.

those funds are from an acceptable source.... so they dont need to be seasoned.