Verification of funds

[Anonymous]

My spouse works full time while I am a student full time. I accepted student loans this spring and combined with my grants, I received a large deposit into our joint checking account. At the time, my individual account had just been closed for a -$0.01 and so I just re-routed deposit to this account. Probably the worst decision of this whole process. I am however not applying on the mortgage as a co-borrower, but the underwriters would like a letter of explanation regarding this deposit. What would be the best course of action regarding this. It would suck to be denied because I have recent student loans. It should be noted that one of this money is for the downpayment, but it was used to pay some cards off.🤔

[Anonymous]

Were you honest with your LO from the beginning? I would call them and explain the situation to see what they say. If you are still enrolled in school and the loans won't have payments until after closing, I would think you would be fine. However, since you're married and don't have an income they might count towards your husband's DTI. I would talk to them and ask how it works.

[Anonymous]

Thank you for your response. We disclosed everything from the beginning and the funds do not affect the down payment funds. I am the sole applicant and so my spouse's DTI is not being considered. I was just concerned that loan money might be more unacceptable as opposed to grants or scholarship money that needn't be repaid.

[Anonymous]

You should be fine then. I had a large deposit from someone paying me money they owed 2 months before I applied and it didn't harm me. I just wrote the letter and they were able to see from my bank statements that the money wasn't in my down payment. I close on the 30th of this month. I would write the LOE without worry if I were you. Congrats on deciding to purchase a home!

[Anonymous]

Thank you for helping ease my worry.