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Old 03-12-2012, 08:06 AM
 
11 posts, read 17,213 times
Reputation: 10

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Hi all-

I recently got an accepted offer on a short sale home. I originally had set aside 3% of the down payment for the house. In talking to mortgage guy he said I need 5%. I only have the 3% currently and I need to get the home closed on soon. I have the cash to make up the difference from 3 to 5% but I do not have a paper trail to show where it came from. I am not talking a whole lot of money here... maybe 2k that I need to show but I just cant deposit it in the bank. Any workarounds to get it in there? I can sell something but again how do I document the transaction that will absolutely satisfy the lender?

Thanks
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Old 03-12-2012, 08:12 AM
 
Location: Martinsville, NJ
6,162 posts, read 11,824,782 times
Reputation: 3971
Quote:
Originally Posted by DWhite456 View Post
Hi all-

I recently got an accepted offer on a short sale home. I originally had set aside 3% of the down payment for the house. In talking to mortgage guy he said I need 5%. I only have the 3% currently and I need to get the home closed on soon. I have the cash to make up the difference from 3 to 5% but I do not have a paper trail to show where it came from. I am not talking a whole lot of money here... maybe 2k that I need to show but I just cant deposit it in the bank. Any workarounds to get it in there? I can sell something but again how do I document the transaction that will absolutely satisfy the lender?

Thanks
Have you asked the lender?
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Old 03-12-2012, 08:14 AM
 
35,104 posts, read 44,077,277 times
Reputation: 62286
Why would you need a paper trail to explain where the cash came from? Just deposit it and move on. For all they know you stuffed it in a coffee can and buried it in the back yard.
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Old 03-12-2012, 08:16 AM
 
11 posts, read 17,213 times
Reputation: 10
No, at this point I do not know who the lender is.It is in the preliminary stages. I have submitted everything required to the mortgage guy except my bank statements as they do not show all the funds needed yet.
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Old 03-12-2012, 08:17 AM
 
11 posts, read 17,213 times
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Originally Posted by CSD610 View Post
Why would you need a paper trail to explain where the cash came from? Just deposit it and move on. For all they know you stuffed it in a coffee can and buried it in the back yard.
Apparently that is not a viable option when it comes to getting a conventional loan. They want to know where the money came from and show that it is legitimate. I could do that but then the funds have to be in my account for 60 or more days. That is not an option as I have to get this closed soon.
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Old 03-12-2012, 09:00 AM
 
4,978 posts, read 12,655,041 times
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Originally Posted by CSD610 View Post
Why would you need a paper trail to explain where the cash came from? Just deposit it and move on. For all they know you stuffed it in a coffee can and buried it in the back yard.
Absolutely not allowed.
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Old 03-12-2012, 09:06 AM
 
4,978 posts, read 12,655,041 times
Reputation: 3786
Quote:
Originally Posted by DWhite456 View Post
Hi all-

I recently got an accepted offer on a short sale home. I originally had set aside 3% of the down payment for the house. In talking to mortgage guy he said I need 5%. I only have the 3% currently and I need to get the home closed on soon. I have the cash to make up the difference from 3 to 5% but I do not have a paper trail to show where it came from. I am not talking a whole lot of money here... maybe 2k that I need to show but I just cant deposit it in the bank. Any workarounds to get it in there? I can sell something but again how do I document the transaction that will absolutely satisfy the lender?

Thanks
Can you cover all your spending needs with a credit card right now and let your employment direct deposits accumulate in your account?
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Old 03-12-2012, 10:59 AM
 
11 posts, read 17,213 times
Reputation: 10
Quote:
Originally Posted by TimtheGuy View Post
Can you cover all your spending needs with a credit card right now and let your employment direct deposits accumulate in your account?
Hi Tim-

I cannot as I do not have a credit card. I think the best option would be to "sell" something and have a bill of sale and a check from the person who purchased the item. Does that sound reasonable to the experts?
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Old 03-12-2012, 11:14 AM
 
4,978 posts, read 12,655,041 times
Reputation: 3786
Quote:
Originally Posted by DWhite456 View Post
Hi Tim-

I cannot as I do not have a credit card. I think the best option would be to "sell" something and have a bill of sale and a check from the person who purchased the item. Does that sound reasonable to the experts?
Yes, that is allowable. Provide as good of paper trail as possible.
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Old 03-12-2012, 04:35 PM
 
Location: 92037
4,630 posts, read 9,334,820 times
Reputation: 1946
Quote:
Originally Posted by DWhite456 View Post
Hi all-

I recently got an accepted offer on a short sale home. I originally had set aside 3% of the down payment for the house. In talking to mortgage guy he said I need 5%. I only have the 3% currently and I need to get the home closed on soon. I have the cash to make up the difference from 3 to 5% but I do not have a paper trail to show where it came from. I am not talking a whole lot of money here... maybe 2k that I need to show but I just cant deposit it in the bank. Any workarounds to get it in there? I can sell something but again how do I document the transaction that will absolutely satisfy the lender?

Thanks

Thats a slippery slope. You are correct, 2k is 'not a lot' but depending on a number of factors like you bank history, it may not work in your favor. For example if you had been depositing 1k here or there for the past few months and no paper trail.
If you werent in contract and this happened a few months ago as a one time deal, a resourceful loan officer would ask you to write a letter explaining where it came from(eg. a craigslist sale for some items you were getting rid of.) However since this is not the case, it may look REALLY suspicious.

You just might want to ask your loan officer what your options are.
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