topic Re: seasoned down payment in Mortgage Loans

seasoned down payment

Anonymous — Mon, 23 Feb 2015 05:23:02 GMT

Can someone explain to me what a seasoned down payment is?

Re: seasoned down payment

Anonymous — Mon, 23 Feb 2015 10:22:38 GMT

If you've had the money for your down payment in your bank account for at least two months so that you can provide two months of statements that show you have the required funds, they are considered seasoned. Funds that haven't been seasoned for 60 days require explanation and/or documentation about where they came from, which can be extensive depending on the source. They are trying to make sure you aren't borrowing money to pay the down payment.

Re: seasoned down payment

Anonymous — Mon, 23 Feb 2015 13:29:48 GMT

Thank You for the info! Do you happen to know the length of history that is reviewed in your bank account?

Re: seasoned down payment

StartingOver10 — Mon, 23 Feb 2015 13:31:28 GMT

Almost always 60 days. Very rarely 90 days (have seen this on this board only, never experienced it with my customers).

Re: seasoned down payment

Anonymous — Mon, 23 Feb 2015 13:36:45 GMT

Thank You!

Re: seasoned down payment

Anonymous — Mon, 23 Feb 2015 22:44:16 GMT

Keep in mind though that they will see your statements. Your full statements. And many include a summary of statement year baddies (like overdrafts, # and total amounts). So, just because they'll only see 2 months doesn't mean you can be lax up to the 2 months before applying.

So that said, if you have more than two months but may have such baddies, be smart. Open a new account, switch your direct deposit, and shepherd it well!

Re: seasoned down payment

Hopeforchange — Tue, 24 Feb 2015 00:14:47 GMT

Really, because our loan officer said not open up any new accounts INCLUDING bank accounts.

Re: seasoned down payment

Anonymous — Tue, 03 Mar 2015 17:05:47 GMT

@Hopeforchange wrote:
Really, because our loan officer said not open up any new accounts INCLUDING bank accounts.

Your LO is correct. If you've started your loan process, you should not be opening new accounts of any sort. That advice is if you know you're still in the prepping stage for pre-approval and have 3+ months of time to season a new bank account. Even with a 6 month window, bank accounts are about the only thing you'd want to open unless there are reasons where new credit would actually improve your score within a few months.

Re: seasoned down payment

joshall — Tue, 03 Mar 2015 17:31:34 GMT

Really? They will see the year-end statement?

Having said that, my LO wanted to see 6 month bank statement! Plus 2013 and 2014 year end statement!

Re: seasoned down payment

Anonymous — Tue, 03 Mar 2015 18:00:09 GMT

@joshall wrote:
Really? They will see the year-end statement?

Having said that, my LO wanted to see 6 month bank statement! Plus 2013 and 2014 year end statement!

year-end statement is a bit ambiguous.

Let's take my WF statements, it shows at the bottom a summary of overdrafts (the number, and total amounts) for the year on each monthly statement. So, even though I didn't have any in the past 6 months, until my first official 2015 statement (which was in Februrary), my statements still showed those baddies.

Different banks and even different accounts within the same bank may have different statement formats. So, how you approach and handle this will vary. And of course, if when I apply, they ask to see statements going back to 2014, I'll need to explain that.