Mortgage/Builder deposit escrow question (credit card, loans, new home)

[egare1972]

Hi all,

I am wondering if we didn't shoot ourselves in the foot. When we made the initial deposit to begin construction on a new home in Indy. My girlfirend used a zero percent credit card check to deposit money into her savings account to cover her half of the deposit. Now that we are 3 days away from close, the credit union has asked for verification of the deposit source to adhere to guiidlines on Fani mae loans. I submitted my source as my IRA (Since I had indeed drawn from my IRA to fund my half.) My girlfriend submitted that she used her credit card. (Which is an unsecured loan and is not allowed for use as a down payment on a home loan)

The question is:

#1) Since we where not directly using the funds to make the down payment has the money "seasoned" enough in builder escrow to qualify for down payment?

#2) Since fanie mae guidline stipulate that unsecured loans cannot be used are we disqualified and out the escrow money since we will now be delayed at closing as we secure the remaining 50% of the down payment?

Thanks for your answers.....

[Michelle Morris]

A) This is what Realtors are for! I wish you had gone into this with a Realtor to help you and guide you from the beginning. They could have also hooked you up with a good lender who would explain all this stuff to you before you put a penny down.

B) NOw, generally, money has to be in your bank account for 2 months for it to be seasoned. When you signed the contract, I am praying that it had a contingency in it that if you can't get the mortgage for whatever reason, you would get your deposit back. Since the builder really doesn't want you to walk away they hopefully will not mind a short delay.

Here's a hint, ask the lender if you can use a GIFT from a family member. Some loans will allow that.