Does cash reserves need to be seasoned? I understand it needs to be accounted for, which it is coming from our business but was wondering if it needs to meet the 60-day seasoning rule too? Our lender says “we need 6 month reserves by closing” but our closing is in 2 months so I’m not too sure.
I think the 60 day seasoning rule is to avoid having to account for where the money came from. This is because the banks usually require 2 months of bank statements and they will ask for an accounting of any large deposits that show up on those statements. If the deposits are made before the 60 days, then they wouldn't show up on the 2 months of banks statements and you wouln't have to explain where the money came from. In your case, you will just have to provide evidence that you have the 6 months reserves (i.e. business account statement).