Prove source of small cash deposits??

[stopdrpnro]

Looking at buying a home very soon and the loan officer explained the down payment couldn't be from a gift. I've. Been scrambling at add a little padding seeing as I'll be paying for appraisals, inspections etc. I've been doing side work here and there as well as selling off some of my toys, then depositing the cash. I have quite  few deposits ranging from about $150 -$200. Will I be forced to show where these funds are coming from or do they only look for large deposits?also a portion of the down payment will come from a retroactive paycheck. Even though it was expected for a while it was just recently paid out. I can prove where those funds came from but will the fact that they were recently acquired affect my ability to use the funds?

[pizzadude]

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@stopdrpnro wrote:

Looking at buying a home very soon and the loan officer explained the down payment couldn't be from a gift. I've. Been scrambling at add a little padding seeing as I'll be paying for appraisals, inspections etc. I've been doing side work here and there as well as selling off some of my toys, then depositing the cash. I have quite  few deposits ranging from about $150 -$200. Will I be forced to show where these funds are coming from or do they only look for large deposits?also a portion of the down payment will come from a retroactive paycheck. Even though it was expected for a while it was just recently paid out. I can prove where those funds came from but will the fact that they were recently acquired affect my ability to use the funds?

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Why would the LO tell you this ?  I've never heard that you can't use gifted money as a downpayment ~ you would just likely need a gift letter or something similar to go with it, stating that it's really a gift and not a loan.

[stopdrpnro]

I was under the impression that fha  loans require you to come up with the 3.5% on your own.maybe its just wells Fargo?

[Anonymous]

Wells Fargo here participates in the Oklahoma Bond Money DPA program - maybe just your LO???

[Anonymous]

When I met with a LO yesterday, he told me that as long as I could explain where deposits came from -- most of mine would be direct deposit or transfers from another account at the same institution -- it was OK to have them.

How far in advance will you have the down payment money? The LO I saw said that as long as it was in there two months before I applied, it would be "seasoned" enough and I wouldn't have to explain or justify that it was gift money.

[stopdrpnro]

Sorry my post should say that loan. Stupid autocorrect 

[imandy]

They're not concerned so much with "gifts" as they are that you didn't borrow money from another bank to borrow money for your down payment to borrow money from them...make sense??

They will ask you where it came from and if it's a gray area they will ask for more supporting documentation. So far I've had mine ask me about a $200 cash deposit that was from an entertainment center that I sold on Craigslist. I told her I sold something on Craigslist and she asked if I still had the receipt!!!!!

I told her no, but I printed off a copy of the craigslist ad I had in my email and sent it to her via email and she laughed and said "OK!"

But if you have a $3k deposit and you say it's for a car you sold you better have a copy of the title, bill of sale, or something showing that you're not lying.

[webhopper]

I sold out of a business. It was cash and checks for all of the business equipment... about 4k worth. Ermmm my broker suggested that we do a verification of deposit instead of statements. None of the money for my closing actually came from that account anyways. I showed my broker receipts; cancelled checks; my website where I had everything listed; as well as craigslist ads for the larger pieces. In the end; a complete business liquidation sale was just too much for him to handle so the VOD and a profit/loss statement showing the disposition of the business was adequate.

[HumbleLobster]

Working with Wells Fargo right now and they wanted to know the source of anything over $250.  We had to proove at least 25% of our own downpayment fund was not gifted and was money we saved on our own.

[rckstrscott]

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@HumbleLobster wrote:

Working with Wells Fargo right now and they wanted to know the source of anything over $250.  We had to proove at least 25% of our own downpayment fund was not gifted and was money we saved on our own.

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well, I thought my statements had aged past this specific deposit, but it was in one of my 3 statements I had to give the bank.......

That is right folks... a big, fat $500 from roulette winnings....

I had to write a LOE.. I kept it simple, but I def wanted to say "The reason for this deposit was black hit 7 times in a row, so I decided it was time to cover some reds, and 36 hit with $15 on it'

to be honest, I thought maybe the bank would be put off by the gambling letter, ya know, the ole 'lose the house' adage.. heard nothing of it after I turned it in haha

-scott