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Pre-Approved for FHA loan - need clarification on cash deposits?

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Pre-Approved for FHA loan - need clarification on cash deposits?

We were recently pre-approved for an FHA loan and have started the loan process. Our home is being built and should close sometime in October. For the months of April and May there were a couple of cash deposits made into my checking account from $200 - $400. No other cash deposits have been made since May. My question is since we will not close on the loan until October will these deposits still be questioned since they will be "seasoned" by the time closing comes around? My thoughts are the underwriters will request for additional bank statements closer to closing at which time all deposits can and will be accounted for. Any thoughts? FYI...there were six deposits all together: $400, $200, $295, $200, $190 and $200. The $400 and a $200 deposit can be sourced but the other $900 in deposits are questionable. Thanks!

Message 1 of 5
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Senior Contributor

Re: Pre-Approved for FHA loan - need clarification on cash deposits?


@Skylabrea wrote:

We were recently pre-approved for an FHA loan and have started the loan process. Our home is being built and should close sometime in October. For the months of April and May there were a couple of cash deposits made into my checking account from $200 - $400. No other cash deposits have been made since May. My question is since we will not close on the loan until October will these deposits still be questioned since they will be "seasoned" by the time closing comes around? My thoughts are the underwriters will request for additional bank statements closer to closing at which time all deposits can and will be accounted for. Any thoughts? FYI...there were six deposits all together: $400, $200, $295, $200, $190 and $200. The $400 and a $200 deposit can be sourced but the other $900 in deposits are questionable. Thanks!


Any deposits not 60 days or older will likely need letter of explanation. Wait until you are asked for the bank statements tehn deal with it if the underwriter asks about the deposits.

Message 2 of 5
Member

Re: Pre-Approved for FHA loan - need clarification on cash deposits?

The lender has ready asked for April and May statements but closing is not until October. Not sure why they needed them so quickly. I would assume they will want more current statements prior to closing?
Message 3 of 5
Moderator Emerita

Re: Pre-Approved for FHA loan - need clarification on cash deposits?

The lender usually wants the bank statements that include your EMD at the beginning of the purchase and then again 60 days prior to closing. You will need to update your paystubs and bank statements and any other date sensitive information as you approach closing. The paperwork can't be more than 30 days old.

Message 4 of 5
Senior Contributor

Re: Pre-Approved for FHA loan - need clarification on cash deposits?


@Skylabrea wrote:
The lender has ready asked for April and May statements but closing is not until October. Not sure why they needed them so quickly. I would assume they will want more current statements prior to closing?

The normal process steps are preapproval [no underwriting in most cases], approval [application and supporting documents underwritten] then clear to close [final review and signoff by underwriter]. Just prior to closing, the underwriter requests updated documents if the ones on file are more that 30 days old.

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