Seasoned Assets, Sourcing Large Deposits and Gifts:
The best thing to do is to keep your money stationary in its original accounts. It is also important to not to move any major amounts around and to not deposit cash on hand into any accounts within your mortgage process.
Definitions
A Large Deposit is considered a deposit into a bank account that exceeds certain regulations. With government loan’s (FHA, VA, and USDA) any amount 2%+ of the purchase price, and for conventional mortgages, any funds 50% or more of your monthly gross income exceeds those regulations.
Seasoned Assets are assets, that when two (2) months are provided for your loan approval there are no large deposits or gifts that need to be sourced.
Gifts are funds that can only be given to the borrower(s) by family members in any monetary amount that is not considered a loan and does not need to be repaid.
Providing the proof to source these large deposits and gifts is sometimes the most difficult part. You need to make sure any party giving you gifts is okay with sharing their account information as to verify gifts we will need the following:
- Donor’s full and complete bank statement with all pages and no blacked-out information showing the gift being withdrawn from the account.
- Recipient’s statement showing the gift clearing
- Gift Letter signed by all parties
Sourcing Large Deposits:
- Any receipts/checks matching the large deposits to verify they are viable deposits i.e tax returns, side work, etc…
Cash deposits are the most difficult to source and sometimes are not able to be sourced at all. If you have recently sold any personal property for large amounts be sure to create receipts with the parties to be able to track this during your mortgage journey.
If you have any additional questions, feel free to reach out to me and I would be more than happy to help you with your mortgage ashley@northeast-mortgage.com or by phone 860-877-0850
Ashley Socquet
