Offer accepted moving forward

[Anonymous]

Me and my husband are using USDA to purchase a new home our offer is accepted and we are pre-approved through the builders preffered lender. We have only assets bank statements and rental history left to submit, currently on day 1. So if I do the bank statement tomorrow and all earnest mony is in it but leaves us with only a couple hundred left is that a problem? Do they want to see like 2 or 3 months up front of reserves? Aslo our savings for the earnest has only been built in the last month do they want to see long term high savings account? We have over 10k in 401k for reserves but worried about cash reserves even though we are doing 0 down. Also my husband used my debit card last month and I have an overdraft that was paid within hours to make the account positive, but looks like 5 total in the last year. any thoughts on this red flags problems getting past underwriting?

[JusdoNit]

Good questions.  Waiting to hear from the experts with you.

[ReBuildingAgn]

I for one am No expert, but I had this same question for my LO today. I was worried about having the required 2 months cash reserves. She told me that the balances in my 401k, savings, and any investment accounts count as your reserves (basically anything that is liquid). Not sure about the overdraft issue. 

[boomhower]

The usual standard is to count 60% of your vested 401k balance as reserves.

[wallacecody25]

Reserves are not required for a USDA loan from what I understand, but it could potentially be different in your case. I'm not an expert, but in my case I was only asked to make sure I have my closing costs in my bank account and that's it.