Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
What are the most recent rules for sourcing money? Is there an amount of money that the bank won't question? For example, you must provide a receipt for every deposit in your checking account over $1000 or over $2000, etc. Are there rules for everyone, rules for the Patriot Act, or rules at the bank's discretion? I'd just like to know how much we are being jerked around and how much is really law. Thanks.
It's not a law but an underwriting guideline to source all large deposits so it depends on your income. If you make $10k a month a $500 counter deposit won't raise a flag but if you make $3k a month it will. You don't notice but you also have to source you paycheck deposits but that is done when you submit paystubs.
It is actually a 2 part guideline saying if the funds are not seasoned for 60 days they must be sourced. What this means is if your bank statement from 2 months ago starts with a balance of $25k and you have little depsoits($50-$100) here and there they will not ask questions but if that $25k goes in during the last 2 motnhs get ready to build a paper trail.
This is a 1k deposit over and they have already sourced 10k over the total amount needed to fund the loan ( down payment + closing costs). Thanks for the responses.
Do they only care about deposits? or do you also have to explain withdrawals and checks you wrote? We are in process of getting FHA loan and they asked an explanation for a 1K deposit. But I have also given some money to my father. They are one time payments but I am nervous the lender is going to make a big deal about them.
yes, they only care about deposits. Even though they will see your w/d's and your check copies (if on the statement), I have never heard an underwriter say anything about checks/withdrawals. Their main concern is to "source" all the down payment and closing cost money you're responsible for at closing. They ultimately want to make sure that the money deposited is not coming from an unacceptable source like the seller, realtor(s), loan officer, or title agent- obviously a huge conflict of interest. If that $1k deposit was a cash deposit, then the lender might want you to be able to paper trail where the cash came from, which could get fun- talk to the loan officer to find out the lender's requirements if this is the case
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
