Question for bankers mortgage experts

[lendaddy]

Try not to rear much into this, just trying to see how far the system has regressed.

Anyway, used to be that you could have a wealthy friend park 5 figures in your account a few months prior to a loan request and it set you on easy street come approval time.

We back to that too? Oh and hold my beer while I apply for this stated income loan (it's my third)

[porsche4life]

Any large deposits will need to be sourced these days.

[lendaddy]

Originally Posted by porsche4life

Any large deposits will need to be sourced these days.

Regardless of time in account? I would assume there is a window.

[jyl]

When I refinanced a year ago, I had to show the source of recent large deposits. I think they asked for three months of bank statements. Maybe if the money was parked for six months, it would pass muster. But I think that deposit would be taxable income. Not sure what reporting the bank does to the IRS, but there's likely some risk there.

I recall submitting something like a linear foot of documentation. No kidding. And the appraisal was tough, well below market value. My impression at the time was, the underwriting was done well.

[Embraer]

When I bought my house last year, I sold several high dollar cars from my collection so I could put a beefy down payment (about 50%) on my house. I sold them throughout the year. I had to go back the previous 12 months to show those sources of income

[Norm K]

Originally Posted by lendaddy

Regardless of time in account? I would assume there is a window.

Lenders will typically consider funds to be seasoned after about six months or so.

[id10t]

Originally Posted by Embraer

When I bought my house last year, I sold several high dollar cars from my collection so I could put a beefy down payment (about 50%) on my house. I sold them throughout the year. I had to go back the previous 12 months to show those sources of income

When I bought in 2000 I put close to 50% down as well ($55k) and when asked I simply said "Inherited it" and that was it.

[Rot 911]

Times have changed and probably for the good. Just bought another house. Sold some stocks for the down payment (around 35%) and still had to jump through a lot of hoops to show where the money came from. We could have paid cash, which I showed them the assets, but their underwriters still required the proof.

[vash]

Originally Posted by Norm K

Lenders will typically consider funds to be seasoned after about six months or so.

this is what i saw when i sold my house a few months ago.

[lendaddy]

Interesting info, thx guys.

[jorian]

Originally Posted by lendaddy

Try not to rear much into this, just trying to see how far the system has regressed.

Anyway, used to be that you could have a wealthy friend park 5 figures in your account a few months prior to a loan request and it set you on easy street come approval time.

We back to that too? Oh and hold my beer while I apply for this stated income loan (it's my third)

Banks have to comply with anti money-laundering legislation and therefore ask to see a history and origin of funds. The credit crisis has something to do with it but it is largely due to terrorism financing.

[wolf76]

Hi. I am a mortgage banker. Seasoning requirements are actually 2 months but if there are large deposits we need to source those and we can go back as far as necessary, there is no statue of limitations. Large deposits have a threshold which is based on your income.

[lendaddy]

Originally Posted by wolf76

Hi. I am a mortgage banker. Seasoning requirements are actually 2 months but if there are large deposits we need to source those and we can go back as far as necessary, there is no statue of limitations. Large deposits have a threshold which is based on your income.

Interesting, what is that rough formula?

[Don Ro]

I have a good friend who wishes to refinance and wants to bolster her funds in order to garner the lowest loan rate possible.
She owns some valuable antique furniture which has been appraised at well over $10,000. If she sold said furniture and deposited the monies what would she need to do to substantiate that money?
Will bills of sale be enough?
I hope that I have worded this correctly.
Any thoughts/comments/suggestions?
Thanks in advance.
.

[rattlsnak]

Going through this now and have deposited @$25k that I got from the sale of a car a month ago and they asked where did that come from and I said I sold a car and that was it. No further questions or proof was needed.

[Don Ro]

Excellent. Thanks.

[look 171]

I am in the process of re-fi my house. We sold a piece of property early this year and had a large deposit into the bank account. Even though we qualify for small amount of re-fi easily without the large deposit, the lender wanted doc to proof where that money is coming from. I has to show that to them. What BS if you ask me. If my tax return qualifies for the re-fi or the low amount, what difference if where the deposit comes from?