topic Sourcing a $500 Cash Deposit?? On a zero down loan? Experts? in Mortgage Loans

Sourcing a $500 Cash Deposit?? On a zero down loan? Experts?

mlearma — Thu, 23 Feb 2012 22:47:58 GMT

Experts...help?

I was supposed to get my clear to close today and they came back asking about a $500 deposit in January. Our scores are good, our appraisal, title work assets, etc all came back wonderful.

We are doing a VA loan. 100% financing and the builder is paying our closing. We gave $1000 ernest and $400 for the appraisal.

They came back today - just before we were supposed to hear about our "clear" and want me to source a $500 cash deposit. Truth is....I was on a business trip and my colleagues and myself took customers to the casino. I played $40 and won $500. It's that simple.

Why do I have to justify a $500 deposit. I do not have to bring any money to close. In the 60 days worth of statements everything else is either direct deposit or via checks that can be traced.

I wrote a letter of explanation and included the deposit slip. With the old house selling I didn't think it was a good idea to have all that cash laying around so I deposited it. Can this hurt me this far along?

The think that is horrible....we are in the house. The builder let us move in with our conditioned approval. We are supposed to close tomorrow and now I can't get anyone to call me back. Should I be really worried?

Anyone's thoughts? Advice Experts?

Re: Sourcing a $500 Cash Deposit?? On a zero down loan? Experts?

my25reasons — Thu, 23 Feb 2012 23:13:06 GMT

I'm not an expert, but my opinion is that the explanation is all they are looking for. I think your reason is justifiable enough.

Re: Sourcing a $500 Cash Deposit?? On a zero down loan? Experts?

DallasLoanGuy — Thu, 23 Feb 2012 23:43:00 GMT

If the funds are to be used: They need to be sourced or seasoned.

They aren't seasoned so they need to be sourced..... if they are to be used.

Since they aren't to be used.... they do not need to be sourced. Your lender doesn't know guidelines.

Have them call the investors hat they sell their loans to and ask for a clarification.

This has happened to me many times. Underwriters do not know that this deposit does NOT need to be sourced unless you are bringing it to closing.

When I have unsourced large deposits like this, I just reduce the bank balance as if it didn't happen.

Re: Sourcing a $500 Cash Deposit?? On a zero down loan? Experts?

Anonymous — Fri, 24 Feb 2012 04:21:42 GMT

I'm told or have read repeatedly that a reasonable explanation usual covers all. They just want to know if you are receiving gifts for down payment or closing (loans from pals or others) that you have to pay back.

I've had an internet yard sale and have raised $3000 cash on forum TradePosts and I've deposited all the cash. The only proof of the source will be my having the loan officer log in to my TradingPosts site and varify by feedback but I'm not a bit afraid.

Re: Sourcing a $500 Cash Deposit?? On a zero down loan? Experts?

Anonymous — Fri, 24 Feb 2012 04:22:53 GMT

Seasoned? That's the first time I've heard that term in association with Home Loans. What does it mean?

Re: Sourcing a $500 Cash Deposit?? On a zero down loan? Experts?

Anonymous — Fri, 24 Feb 2012 04:25:26 GMT

I should add that none of the cash I have deposited into my checking accout is being used for any part of my mortgage. I just paid off credit cards to look good.

Re: Sourcing a $500 Cash Deposit?? On a zero down loan? Experts?

Anonymous — Fri, 24 Feb 2012 04:51:58 GMT

what do you mean by you just I "reduce the bank balance like it never happen"?

Re: Sourcing a $500 Cash Deposit?? On a zero down loan? Experts?

boomhower — Fri, 24 Feb 2012 15:33:38 GMT

Your fine. They just want to make sure that you aren't receiving any loans personal or otherwise. Just tell them what you told us, that's perfectly OK.

Re: Sourcing a $500 Cash Deposit?? On a zero down loan? Experts?

cdtotten — Fri, 24 Feb 2012 15:52:55 GMT

@Anonymous wrote:
Seasoned? That's the first time I've heard that term in association with Home Loans. What does it mean?

Seasoned means that the deposit took place prior to the 2 months of bank statements that were requested. If it doesn't hit the requested statement, then the funds are in the account (seasoned over time) and irrelevent to the approval.

Re: Sourcing a $500 Cash Deposit?? On a zero down loan? Experts?

cdtotten — Fri, 24 Feb 2012 15:54:48 GMT

@Anonymous wrote:
what do you mean by you just I "reduce the bank balance like it never happen"?

If the funds do not have to be sourced, then they take the bank balance on the statement and subtract the unsourced deposit amount. So if you had $2k in the bank and $500 was unsourced (and unneeded), they would only include $1500 as the bank statement balance.

Re: Sourcing a $500 Cash Deposit?? On a zero down loan? Experts?

Anonymous — Fri, 24 Feb 2012 19:06:24 GMT

That clears that up. Thank you ever so much. The last time I bought a house was in 1998. It is amazing how broken this system has become since them. In '98 I think I made about 8 signatures in an hour then I owned the house.

Re: Sourcing a $500 Cash Deposit?? On a zero down loan? Experts?

mlearma — Fri, 24 Feb 2012 19:21:11 GMT

I agree...the last one I bought was 1999 and it was simple. I have been through a sheer nightmare trying to get this one done.

Re: Sourcing a $500 Cash Deposit?? On a zero down loan? Experts?

Anonymous — Fri, 24 Feb 2012 21:21:17 GMT

Did they accept your explanation? Your story has me outraged because your broker is rude and not interested in keeping your business. I'm curious to know how this turned out.

Re: Sourcing a $500 Cash Deposit?? On a zero down loan? Experts?

Anonymous — Sat, 25 Feb 2012 02:50:45 GMT

Ya it may have been that easy back in the 90s.. But think about how many people have screwed banks between 2005 and now vs. how many people screwed banks in the 90s. As annoying as it is to get approved and what not you kinda gotta look at how bad we the people have screwed it up for ourselves.. Good luck with your situation by the way. As stated earlier, they just need a simple explanation of where it came from. Remember its not like they are the IRS wondering where you're getting your income. Just tell them where/how you got it

Re: Sourcing a $500 Cash Deposit?? On a zero down loan? Experts?

Anonymous — Sat, 25 Feb 2012 03:45:41 GMT

Indeed it goes both ways but I will never be able to muster an ounce of simpathy for the worst of them.