Not All Assets Are Created Equal!

When it comes to your down payment and closing fees, the source of your funds matters! Lenders need to make sure your money is coming from a legit source. So, let’s get those funds approved and ready to roll!

Down Payment Drama? Let’s Clear That Up! 💸 When you’re getting ready to buy a home, figuring out your down payment can feel like deciphering a secret code. Different loan programs have different down payment rules, and let’s be honest, no one wants a surprise at the last minute! 🏡

Make sure to chat with your loan officer about which program fits you best, and what assets you’ll use to cover the down payment and closing fees. It’s like planning for a big event—let’s get it right so you can pop that champagne when you get the keys! 🥂

Here’s a breakdown of what you can expect, depending on your loan type: 👇

What assets can be used for a down payment and closing fees?

Cash is not king when it comes to using funds for a mortgage transaction. All funds associated with a mortgage transaction must come from a verified source. If you will be providing the down payment from your own funds, it is important to be prepared to document the money the source of the funds. See below for some assets that can be used with a real estate transaction:

• Money from checking, savings, money market, certificate of deposit, or other depository accounts may be used for the down payment.
• Money being used toward your down payment should be deposited into your bank account 30-60 days prior to closing on the new home.
• You will need to be prepared to show the most recent two months complete bank statements or investment portfolio statements to document the funds in your account.
• If you are using a retirement account, such as a 401K or an IRA, you will need to provide the terms of withdrawal along with the statement.
• Any deposits in your account being used for the down payment will need to be documented if the deposits are 25%-50% of your monthly income.
• Gifted funds are allowed from family members, fiancé, fiancée, domestic partner, employer & non-profit organizations.

Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions.