When applying for a mortgagea mortgage broker or bank will likely inquire about your assets, and more specifically, your liquid assets. Not only that, but those assets will be need to be seasoned for at least two months in most cases. They do so to verify that the borrower has established a savings pattern, and that the assets support the stated income if applicable.

And mortgage insurancewhere applicable. Reserve requirements will vary from bank to bank, and from mortgage program to mortgage program, but you can get a good idea of what you may need to provide for different property types. For Fannie Mae and Freddie Mac loans conformingreserve requirements vary based on credit score and LTValong with property type.

They can range from as little as zero months to as much as 12 months, depending on the scenario. As a rule of thumb, more risk requires more reserves. There is no reserve requirement for FHA loans on unit properties. However, unit properties typically require three months of PITI. Additionally, three months of reserves are required for each rental property owned that is not secured by a VA loan. For jumbo loansreserve requirements can vary tremendously, from as little as six months to several yearsdepending on how large the loan is.

This is better than providing bank statements, which may show payroll and other information that you may not want to disclose. Even if the mortgage company initially asks for bank statements, a VOD should suffice. Acceptable items usually include automobiles, coins, art, and antiques. At the end of the day, make sure assets are in personal accounts and seasoned long before applying for a mortgage! In other words, you need to shore up assets long before applying for a mortgage to avoid any scrutiny.

You should also tell readers that jumbo loans typically require six months of PITI or more, seeing that they are larger loans and carry more risk. My lender wants me to have 6 months of reserve as I am buying a investment property.

My daughter is loaning me the money to fund it and she wants her money back after closing. How long do I have to leave it in reserve after closing? Once a loan funds and records, you can do what you want with the money, but gift letters specify that the money does not need to be paid back to the person who gave you the gift. And make sure the bank is okay with you using gift funds for reserves.

The Facts about Earnest Money Deposits | aqasesuyohaw.web.fc2.com

Typically, banks will ask for your two most recent monthly bank statements for asset verification. However, unit properties typically require 3 months of PITI for reserves. The lender says they require 18 months reserves. This seems quite high. Put simply, the lender wants to know you can actually make payments for a while on such a large loan. I have no liabilities.

I own 2 other homes free and clear. My credit score is I have a 25 year employment history with the same employer. WHY IS THE LENDER TREATING ME LIKE A CRIMINAL? What regulations have I failed to meet? You might be able to borrow against the k to get the necessary funds, but the k loan payment may need to be factored into your DTI.

I have just been asked by my lender to supply six months reserve for an fha loan a week before closing, he is asking me to get a Does this sound fishy to you?? Do those numbers add up in that respect?

Will taking money out of the IRA hurt our chances of qualifying for the loan? Sorry for your loss. With regard to the current loan, the Garn-St. Germain Act may provide you with some rights to continue making payments.

Just make sure they fully understand your asset situation and also time everything properly to avoid delays as shuffling money can be time consuming. My husband is applying for a mortgage and I am not included on the application because I am a full-time PhD student to be done later this year and have no job at the moment.

He is close to being denied at I own some valuable artworks and antiques and have a professional appraisal for each one — used for insurance purposes. Can I give or sell my husband these assets to help him get the loan for our house? If not, can he claim my retirement account as an asset without me being on the application? Your loan rep should be discussing ways to rework the loan to make it eligible. Do you think that should be fine? FYI, I also took a loan from my k for the amount of 20k for making down payment, so the available 29k is after the loan amount.

Also why is mortgage insurance asking me for seven months reserve, while the lender bank already said its clear to close. As per the broker he said once the mortgage insurance reviews your seven months reserve evidence then they should be able to provide me with a HUD statement. The mortgage insurer has its own underwriting guidelines. You should be speaking with your broker regarding this matter to ensure you have enough funds to close.

He or she should know.

Does My Earnest Money Count Toward Closing Costs? - Budgeting Money

My husband and I applied for an fha loan the underwriter is requiring a 3 month reserve is this okay and why. Or a compensating factor for a high DTI ratio.

I presented all that was requested. My closing date has come and gone and I feel as if I am being jerked around. The required reserves can depend on the bank and the loan program and what the underwriter discovered when looking at your loan file. We have a loan for a 1Mil. They are asking for a 12 month reserve. We have a lot in stocks, they are asking us to have Cash in Bank. Do we really need to extinguish our stock to show we have money on reserve, or should the stock be enough?

It will be an owner occupied home. Credit score is How much in reserves do you think Chase will ask me for? I am a current Chase customer. Thanks in advance of your help. Your comments are very helpful. It depends what the automated underwriting comes up with, but with your high credit score on a primary residence you might not need any. I believe I have a good credit score and plan on using a combination of hardship withdrawal on my k and a giift amount from my parents.

Unfortunately I have been very bad at saving beyond my k contributions, however i do have a good credit score. Will i be questioned on my spending history and do you think it will affect getting approved for a first time residence purchase?

My spending has not incurred substantial credit debt. It certainly helps to have your own assets set aside for the purchase of a home, but if you have low debt and good credit, you might not need much if anything in reserves.

Not sure why a lender would question your spending history unless you have lots of associated debt. Or perhaps you could put more money down to get the monthly payment below DTI cutoffs. Could be that the underwriter wants to see more funds to approve the file.

I am about to start searching for a home. I will have funds left in the IRA and in a k. Should I withdraw the IRA funds now to have it season in my bank account? Also, do I need to have this money in my savings account to get pre-approved? The IRS rule provides a day window to use the IRA distribution for a home purchase without penalty. A paper trail documenting where the funds were transferred from should satisfy the seasoning requirement. We are a very young couple with two toddlers.

My husband makes k a year, has averaged 30k in vested stocks per year, with another k in stocks vesting every 4 months through We have 20k in savings, 45k in retirement, and 20k in equity on a rental property that earns us per month after paying the mortgage.

We are worried about securing a decent mortgage when we move in four months due to lack of cash on hand. My father has pledged a gift of 25k to help with either a down payment or reserves. How do unvested stocks help or hurt our mortgage application?

Any advice on preparing for the application process? Generally, retirement accounts must be vested and available for withdrawal to count toward reserves. Per Fannie Mae guidelines, personal unsecured loans are not an acceptable source of funds for down payment, closing costs, or reserves. Started working with a Real-Estate Broker after pre-approval for apartment loan. Also these reserves should not include investments which could suffer from early withdrawal penalties, i.

Is this a real requirement? Are potential buyers expected to have 2xDownpayment? How much is a potential buyer expected to put aside from the initial downpayment?

This is for a 1 bedroom apartment. I have plenty of seasoned and unseasoned funds, but prefer to use the unseasoned funds from a different bank account. I still have the seasoned funds, but would rather not mess with them as they are part of my retirement fund.

We were recently pre approved for a K mortgage on a new property were we would owner occupy the first floor unit of a double. We currently own a single family that we will be listing within a month. We owe K on that property.

We are now 2 weeks into the process with inspections on the new property complete. However now the lender is asking for 18 months of reserves? The reserves might be structured where you need X months for your current property and X months for the new property.

Ask the lender for specifics. We are being asked at the last minute for reserves of 6 months on the property we are moving into as well as 6 months of reserves on the property we are moving from even though we have a signed lease agreement…we have 3 other rental properties and plan to use the home we are moving from as a rental property. First question, with our good credit and payment history why are we being asked for 6 months rather than 2 months worth of reserves?

Can I write a credit card check to myself and deposit that into my account for the purpose of reserve cash? Secured borrowed funds like HELOCs are generally acceptable for reserves, but check with your lender to be sure. Our credit score is This covers our present expenses and some savings. This was done to have enough liquid savings to fund our down payment, closing costs, and home upgrade expenses on the two homes. In order to track this transfer, I have furnished records of the movement from my IRA into our checking account.

I will pay estimated taxes on this money and leave the rest in our checking account to further fund our upgrade and moving expenses. This seems to represent six monthly payments on the new mortgage loan. We are not very familiar with this terminology, not understanding if this means an escrow account or a letter confirming we have the funds.

What is your opinion on this matter? It sounds like they are just asking for proof of reserves common requestmeaning documentation that you have that amount of cash on hand. Can I apply for a loan from my bank to cover the reserves? I do have a check that I am hesitating to deposit for a totaled car towards the reserves plus two gift letters. Probably best to ask your loan officer why you need more and what will be sufficient to cover it. I have k deposit on a 2. During those 2 years my business income has declined significantly but i can still afford loan payments.

Im sure this will bring alarm bells to the underwriter. Now they have, a month before closing have required me to have 3 months in reserve. Why would they require this with an FHA loan? Your input would be highly appreciated. It could be that your credit is low or reserves are needed as a compensating factor. Best to ask the lender…they should get back to you! They might ask for a letter of explanation if your income has really tanked to better understand why. Thank you for this great source of information regarding loans.

This is investment property.

Earnest Money Deposit vs Down Payment and/or Closing Costs

And lenders stopped at the first one they came to. First was the LTV. That is difficult if you do not agree with the estimated value of the property.

For me, that improved over time. There had been some maintenance that needed attention and this became part of a negative balance regarding income from the property. Inthere is still a small negative income for two units due to my current mortgage situation. I have a private second mortgage that I wish to pay off. This could still cause a problem and time may also help here. But the real problem is the reserve. After all my calculations with PIT, etc.

You need to believe that if I could come up with that kind of money, I would not need to refinance. And what is most interesting is that consistent good credit scores do not impact this requirement. My score is overmaybeand this has been an on going score over a number of years. If you know of any way that this requirement can be mitigated, I would appreciate the information.

Perhaps shop around and speak to brokers to see if any lenders out there require fewer reserves based on your situation. I have good credit and was quickly approved by my credit union, but they came back and said that the reserve requirement would be six months of monthly payments.

Also, I understand that an FHA loan would only require three months in reserve, should that be something for me to consider or are there significant drawbacks?

If you intend to live there as your primary residence, it should be treated as a primary residence, not an investment property. Reserve requirements may vary from bank to bank, but Fannie Mae requirements call for 6 months reserves on unit properties.

FHA might require fewer reserves but cost you more reserves are just reserves, not actual money being spent. I have a question. I would like to know if we would need an cash reserve for an FHA loan that we were preapproved for?

Taxes and insurance will be including in our mortgage payments. I was never told upfront about cash reserves…but the loan officer stressed that we save as much as possible. Anywho, do you think we will need much in the bank? We just started saving and only saved what we needed to have by closing. So what do you think? This is a house, primary residence, and just one unit. Best yo ask your loan officer what the reserve requirement is.

Quick question from a first time home buyer. Do you think this is what we will need for the close or is this just to make sure we have reserve funds beyond the close. Your answer to my situation was not unexpected and I have decided to do a little!

My trip led me to the Federal Reserve Board which then pointed into other directions. I have only touched the surface and will continue to plod through the internet in search of answers. In my search I DID go back to the Fed.

Board and found they are looking for people interested in being on their Advisory Council that impacts consumers. This is some good info, but I had a question.

First time home buyer here, and we were pre-approved for a community works mortgage through HSBC. Are they asking for a reserve with that wording or just that we have the money on hand for the closing and down payment? I have a pension public school and a life insurance policy through the school. Not vested in either one however.

They will not take any of the monies in these accounts I take it? Just really confused with this reserve stuff and worried we might not meet their requirements and it might kill our chances of the loan.

Any help would be greatly appreciated: I have applied for an FHA loan, and I am receiving down payment assistance. If they were to look at my checking right now today it is obviously low because of the recent escrow activity- but my loan officer knew going in I only had a specific amount of money- also, I want to confirm that asset verification includes the verification that I am getting down payment assistance and seller credit.

They should be able to see the paper trail of the money going out and coming back in and why that happened. Generally assets need to be liquid aka readily accessible to be used for reserves. Ive received preapproval for a home loan, and am providing all the necessary information ex. I dynamic hedging put option an IRA and funds from a joint savings account that I have with my mother.

Can I use both for to show seasoned funds? Hi, My partner of 14 years and I are splitting up. We have one child. My personal income averages 5k per month, and credit score is around I have very little debt, and we also own a company together which is established sinceand annual revenue of k. I do have verifiable w-2 income from my salary.

But great credit, steady income, and some assets and low debt is a good start. We have a recent large deposit which is being questioned.

Can the availability of funds from such a loan count as reserves? My wife and I took out an unsecured loan to buy property 15k, the property appraised for 31k, and we have the deed free and clear. My question is will the lender pay off that unsecured loan as a part of the new construction process? I was told that even though my credit is perfect, my local bank will no longer use assets as collateral????

We are rolling closing costs into the loan. Colin, My husband is purchasing a home and obtaining a VA loan. I am not on the loan due stock market basics in the philippines my credit score. Hi Collin, Im married, however Im obtaining a Conventional loan by myself for K with a credit score.

My husband and I have a joint bank account and he is going to deposit 6K from Vanguard for reserves. Can I claim this as a gift from him or no since he is my husband? Ive paid down almost all my debt therefore Im cash poor now and Im worried about seasoned reserves. I will only have around K in cash and around 5K in my k. My application will go into underwriting in the next couple weeks. Your LO should be able to provide guidance. The loan is underwritten thru the bank, then thru MSHDA.

MSHDA is forex standard deviation channel indicator these funds — we did a purchase agreement, but nothing official or notarized.

We are holding onto title of home, in case mortgage does not go thru. MSHDA is requesting a formal affidavit. Will this jeopardize our loan and down payment assistance? Is it possible they can still deny us? We cannot get the mortgage without the down payment assistance. We would like to apply for an FHA mortgage and try to get approved for aroundto buy a condo or townhouse.

We live in Florida. Also if I may ask one more question: Will that be a huge red flag that will get our application denied altogether, or just that we will get approved for a low amount?

Should we try to go two months without touching our savings at all and then apply? Hi Colin, if needed I plan to take a loan out against my k to meet the PITI. Do I need to have the funds withdrawn from my k to meet the PITI requirements or can I simply provide a monthly statement and current balance as proof that the funds exist if they are ever needed?

Hi Colin, I just turned 60 and am withdrawing all of my k. Part of it will be gifted to my daughter to help her purchase a home. Does the money need to be in my checking account for 60 days or can they just verify the k was active for that long? Thanks Colin, but best way to make money in wow 4.3 was approved for an FHA loan and was told that my gift had to be seasoned.

Was she told the wrong information? I am currently finalizing a cash out refinance with my how to value a binary options property, the money I am talking out of my property is for another house I am in the process of purchasing.

Can someone help me understand if the dollars I am waiting to receive from the refinance are going to be able to be used as proof of funds on my investment property. The refinance has already received the mortgage commit, as well as anzac day shop opening hours brisbane appraisal.

But homeowners often tap their home equity to buy another home, just make sure you can qualify for both loans. In connection with the asset reserve requirement for a mortgage application, I provided stock in a publicly traded major utility which can be sold and proceeds received in one week from the request to sell.

The value of the stock is well in excess of the two months reserves I need. I have been told this is not sufficient. Does this make sense? What are the standards for liquidity for this purpose? Reserves are just required for the loan to fund, to ensure you have necessary cash to make future payments. Ask your loan officer for specific details. Can retirement funds be our only source of reserves?

You should ask your lender to be certain but retirement assets are often used for down payment, closing costs, and reserves, though underwriters do generally like to see that you have some money in the bank as well. Colin, I recently applied for a mortgage and the underwriters have asked me to explain a 6 month gap in my employment history and a large deposit of 10K.

I was actually eventually employed by one of the founders in a different business that could afford to pay me. When the start-up became profitable they sent me a check for 10K along with a thank you note for helping them get the business running. I spent the 10K on moving expenses cross country. Wow make money engineering mop am not using it for a down payment, or stating that it is income.

I explained where the money came from in an how many stocks are traded on the tsx to the underwriters as requestedbut I am now concerned that it will prevent me from getting my mortgage.

In forex cargo experience do you forsee this as being a problem? Hard to say, but if you state your case and it makes sense to the underwriter and provide ubuntu devpts called with bogus options when necessaryit has a chance. It may just take some extra legwork and paperwork….

Fo instance, am I able to use those funds to pay for the initial appraisal and inspection of the property, or do those have to come out-of-pocket? I am short in reserves and there is a significant magnitude greater in the account.

I am fully vested so the money is available to me. Instead the advisor wants me to make a withdrawal from the account I have the max loans out, but the company match is available up to the max of 50k now —still a penalty, but no hardship required.

Is the under writer correct —this is Wells Fargo …if she is not what is a good diplomatic tactic to get her to move to another position in her thinking? Generally the most diplomatic route with underwriters is asking for an alternative to get the job done.

Me and my husband are looking into buying our first home. We have savings account but not a lot of money in it. I have 11, forexia suisse k tho, would that be enough for reserve?

I am concerned about him nearly tripling his income — will they question this? Job is in forex standard deviation channel indicator exact field for his masters.

Will most lenders require he be there for two years with our limited assets? Best to speak with a loan officer experienced with USDA to see what is specifically needed for your particular loan amount and loan scenario. It might actually make sense to speak with some lenders now, as opposed to waiting until the 11th hour, to see what potential issues you may have once it comes time to apply for a loan. If his new job is in the same field as his degree a lender may not have a problem with his limited job history because it makes sense.

Cash on hand seems to be a lot better than many other Americans…. My husband filed bankruptcy 5 years ago before we were married. Although he kept his househe has been paying the mortgage late. If we sell the winchester model 70 aftermarket stocks, will we still have to provide his payment history to qualify for a loan. We want purchase another house less than six months after we sell the current house.

The lender will likely see the payment history on his credit report though if enough time has passed it may not be an issue. My husband is being transferred from West Coast to East Coast end of May and was pre-approved for a mortage by the loan company he works for he works marketing and is not involved in the mortgage aspect of the company.

We found a house and put in an offer. We will loose the funds that we have given giant christmas santa stocking personalised a good faith holding and are about to loose the option to purchase the house.

My husband does not have very good credit, but good employment and rental history. This loan was to be an FHA loan through Fannie Mae. Are there any other options out there that we could utilize that would allow us to purchase this home still? They never advised us of seasoned funds, only gave us an amount to have in the account for us to proceed. We had most of the deposit for over two months as cash on hand because exchange rates pakistan rupee pound were saving it up towards our cross country move.

If we had known, we could have deposited the money earlier. We move end of May and if we have to rent a place, it would cost most of our savings because of first and last month plus security.

Colin, I need to plan what I can do. I would like to see if there is an option for me not 20k investment options be working when I get a loan for a new house. When I sell my current house, I will have enough for the down payment. I have a nice k that I want to use as income.

I want to pull it out slowly to make the monthly payments. This is so I would fall into a lower tax bracket. Can this be done? How do I do can earnest money be used towards closing costs getting the loan? My husband and I want to buy a house by August of this year however, we each have some weaknesses regarding our situations.

We do not know if I should apply, he should apply or if we should apply together for a home. Around 35K in student debt loans. His credit is high s. He is retired army so could do VA.

If you were in my position what situation has less risk? Or do we not stand a chance at all? Also…do I have to liquidate all of my stock for it to be considered assets? And…if 6 months of steady employment history is work from home 40291 strong enough for my husband, do you believe 9 months would suffice? Thank you in advance for any advice you send my way! Best Regards, Michelle Leigh Moretz.

In the meantime do your best to improve your credit scores and squirrel away money to buffer your asset reserves. Also keep spending to a minimum if possible, which should boost your scores and increase assets if you rely on credit cards a lot. And if everything else in your borrower profile looks better cara investasi forex score, assets it should help.

Colin, I have no debt, hence no credit score. My husband has no debt but still has a credit score of Mortgage lender wants to only use my husband on the loan but I will be on the title. Can his K be used as assets without without actually withdrawing and depositing into our joint account?

Also, I have a separate checking account for my personal spending money. Since I will not be on the loan, can I take a loan from my K to deposit into my checking account to use segnali trading forex gratis expenses such as to pay the insurance in full on the new home for the full year? We are not escrowing the taxes or insurance. Or, would that jeapordize the loan since I will still be on the title and signing the paperwork during closing?

Unfortunately I am not very confident in our mortgage brokers advice with the new laws in play. Your broker should know best how to structure the loan knowing who has what assets available. Not sure why you would want to mess with your retirement to pay your insurance bill. My husband borrowed from his k to use as a down payment for a home purchase which we received and deposited into his checking account.

The purchase fell through because of a problem with that specific house and we had to cancelled the purchase contract. We will now be looking for another property to purchase. Do we need to let his company know what happened, or just move forward with looking for something else to candlestick secrets to options trading success, since they previously requested copies of the purchase contract of that first home that we ended up not buying.

Also, what if we need to now borrow more money from the k? Will they then ask about what happened to the first purchase? There may also be a time limit to apply the funds to a home purchase, which you may want to discuss with the k company to ensure you complete everything in time. Asset requirements are steeper however with 12 months reserves and 6 months of these have to be liquid. I planned to take a k loan to help subsidize closing costs and meet the liquid asset requirements at closing and at the outset I asked the originator specifically if the k loan would be counted toward DTI and was told no.

I think I feel the dream home slipping away. If it is indeed counted and the DTI is exceeded, you could can earnest money be used towards closing costs for an exception or play around with new york forex closing rates numbers down payment, etc.

Same as I pay on my monthly salary. Thank you for your advice!! I expect to need some amount of mortgage in addition to the approx. Will I be able to get a mortgage based on social security, personal annuity, euro forex trading forecast IRA distributions? Will they accept those as income at that point?

We have a FHA loan compensation expense resulting compensatory stock option plan generally 3. We have the income to cover the new mortgage payment; however, during the time of construction we were planning to save the remaining cash to close amount. We are exactly 3 weeks from obtaining the cash 5K.

Since we are 2 months out from closing date, think it is possible the lender wants to see the reserve money now or will wait until it is all there. If you want the definitive answer you should probably ask the lender directly. The source of that cash may also be scrutinized.

This money was VERBALLY AGREED UPON, by my Fiance and his Parents, that the monies I lent them, was a LOAN and NOT a GIFT.

I asked about just adding me to the title at Settlement and I was told by the Loan Officer that it was not a good idea to do so. I bit the bullet, held my breathe and KNEW I made work home jobs through aarp horrible mistake.

These people committed Mortgage Fraud, and conned me out of my money, to help my Fiance get stock exchange gold prices Mortgage with MY MONEY. The Loan Officer even went so far, as to CHANGE the RECEIPT on the Home Inspection that I paid for, to make it look like my Fiance PAID for it.

Subsequently, after a year…. I FINALLY got tired of fighting with my Fiance about putting me on the title to the House, or paying me back the money like he said he would do. I have since, broken up with him…. It has only been 2 years since he defrauded me, so I have the ability to seek Counsel.

I was told that I have every right to contact the Bank, and tell them what my EX-FIANCE and his Loan Officer did to obtain the Mortgage. I will also be filing a Civil Law Suit.

Any ideas as to the ramifications to my EX and the Loan Officer and possibly the Bank, for perpetrating this Fraud…?

And, Yes, I have ALL the documentation to confirm what they did, and much much more. But now I am asked to have 3 months. I have an ESOP profit sharing account with my employer which I cannot withdraw funds from until I either leave the company or retire. Would I be able to use the amount in the ESOP profit sharing account for my reserve requirementS?

I do not have a pension loan out or am I using any money from my pension towards my potential house. Hi Colin, Do you think there is any possibility of me qualify for a home loan? I have 25 thousand in savings. I have no debt or credit cards, but my credit score is below If I were elegible, how long do you think it would take me to move into a new home if I started the process today?

This past summer I was told it was credit problems. I am so tired of renting and throwing away my money but it is also a very stupid financial decision to pay for a house in cash when I make a decent return on my financial portfolio. Please, tell me how I can purchase a home. I even have the house I want to buy and have discussed it with the owners.

I just need a mortgage. It sounds like you have sufficient assets, but an income shortfall? Might be able to qualify using assets where they take the total and divide over months mortgage term. Hi, we are in the process of purchasing a house and are planning to use a K loan for the down payment FHA loan. We are planning to take out the maximum amount allowed and should have some money left from the K that we would like to use for the appraisal.

My question is — if using a K loan, does it matter when we transfer the funds into our checking account? Can we transfer at any time as long as we provide proof that the funds came from the K?

Or do we have to wait until closer to closing to transfer funds into checking? I am interested in purchasing a single family home as an investment property. I understand this will affect my debt to income ratio, but as long as the numbers work will I be okay?

Or does the mortgage underwriter go back and see that some of my down payment may have come from that personal loan? Any advice would be greatly appreciated, thank you. Colin, when doing a cash out refinance, do you need to have enough PTI for all existing properties or just for the one you are refinancing?

Colin, given that the reserves are in question, is FHA a better way to go? You may want to determine what types of loans you can qualify for and see if reserves are going to be an issue for sure, then compare costs…FHA forces mortgage insurance on its borrowers, whereas you might not need it with conventional financing. Click here to cancel reply. Powered by the lovely Wordpress platform. Home About Contact Mortgage Dictionary Mortgage Help Topics The Archives. Mortgage News Mortgage Tips Mortgage Mortgage Amortization Debt-to-Income Ratio Do I Qualify for a Mortgage?

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Refinance Can I Refinance with Negative Equity? What Is a Cash-Out Refinance? Does a Refinance Require an Appraisal? Does Refinancing Hurt Your Credit Score? How Does Refinancing Work? When to Refinance a Mortgage Vs.

ARM Home Prices vs. Mortgage Rates Jumbo Loan vs. Conforming Loan Mortgage Brokers vs. Banks Mortgage Rate vs. Assets and Reserve Requirements. Colin Robertson Before creating this blog, Colin previously worked as an account executive for a wholesale mortgage lender in Los Angeles. You can follow him on Twitter and connect via Google Plus. Jeremiah July 18, at Amelie July 20, at 5: Stuart July 21, at 5: Lakesha August 15, at 8: Jane September 14, at Colin Robertson September 14, at Colin Robertson September 14, at 1: Steve November 12, at Briscoe January 15, at 1: Colin Robertson January 16, at 2: Sierra February 26, at Colin Robertson February 27, at Karin Worthey April 29, at Colin Robertson April 29, at Karin, What are they asking for?

Cris May 21, at 6: Colin Robertson May 21, at Laurie May 22, at Colin Robertson May 23, at 8: Brian May 24, at 3: Colin Robertson May 25, at 4: Colin Robertson May 25, at 5: Don, Sorry for your loss.

Brian May 25, at 7: Most of it is qualified money and stock options. Does that hurt our chances of qualifying? Colin Robertson May 26, at 9: Caro June 2, at Colin Robertson June 2, at 4: Arvind June 17, at 8: FYI, I also took a loan from my k for the amount of 20k for making down payment, so the available 29k is after the loan amount Also why is mortgage insurance asking me for seven months reserve, while the lender bank already said its clear to close.

Now I just have one day left to close, should that be fine, for things to sort out? Colin Robertson June 17, at 9: Arvind, The mortgage insurer has its own underwriting guidelines.

Debra June 26, at 8: Colin Robertson June 27, at 9: Maxi August 14, at Colin Robertson August 15, at 9: Maxi, The required reserves can depend on the bank and the loan program and what the underwriter discovered when looking at your loan file. Hope August 19, at 2: Colin Robertson August 19, at 5: John August 23, at Colin Robertson August 25, at 9: John, It depends what the automated underwriting comes up with, but with your high credit score on a primary residence you might not need any.

David Smith September 2, at 7: Colin Robertson September 3, at Colin Robertson November 18, at Erin November 23, at 7: Colin Robertson November 24, at 1: Erin, The IRS rule provides a day window to use the IRA distribution for a home purchase without penalty.

Bob January 4, at Whitney January 4, at 1: Colin, We are a very young couple with two toddlers. Colin Robertson January 5, at Colin Robertson January 7, at 5: Dave January 21, at 7: Colin Robertson January 21, at 8: Dave January 21, at 9: Thanks Colin, This is for a 1 bedroom apartment. Colin Robertson January 22, at Miguel February 3, at 5: Colin Robertson February 4, at Esteban February 10, at 8: Colin Robertson February 10, at Colin, We are being asked at the last minute for reserves of 6 months on the property we are moving into as well as 6 months of reserves on the property we are moving from even though we have a signed lease agreement…we have 3 other rental properties and plan to use the home we are moving from as a rental property.

Colin Robertson February 16, at 6: Sal March 1, at 9: Would a HELOC on our primary residence be allowed as reserves for an investment property? Colin Robertson March 2, at 1: Sal, Secured borrowed funds like HELOCs are generally acceptable for reserves, but check with your lender to be sure. David March 11, at Colin Robertson March 11, at 3: David, It sounds like they are just asking for proof of reserves common requestmeaning documentation that you have that amount of cash on hand.

Jay Hynz March 12, at 4: Colin Robertson March 12, at 5: Jay, Probably best to ask your loan officer why you need more and what will be sufficient to cover it. Dom March 13, at 5: Hi Collin I have k deposit on a 2. Will this be a problem with the bank in the final stage of loan approval? Ramon frias March 15, at 4: Colin, You stated that in unit homes with theFHA loans, do not require any reserves correct? Colin Robertson March 16, at 9: Jane Grayson March 28, at 8: Colin Robertson March 30, at Jane, Perhaps shop around and speak to brokers to see if any lenders out there require fewer reserves based on your situation.

Dan April 1, at 9: Colin Robertson April 2, at Dan, If you intend to live there as your primary residence, it should be treated as a primary residence, not an investment property. Houston April 12, at Colin Robertson April 12, at 6: Houston, Best yo ask your loan officer what the reserve requirement is.

Chuck Ulbrich April 14, at 3: Colin Robertson April 14, at 8: Jane Grayson April 16, at 9: Hi Colin, Your answer to my situation was not unexpected and I have decided to do a little! Tony April 19, at 7: Hi Colin, This is some good info, but I had a question.

Caliblu83 April 20, at 9: Colin Robertson April 20, at 4: Caliblu, They should be able to see the paper trail of the money going out and coming back in and why that happened.

Tony, Generally assets need to be liquid aka readily accessible to be used for reserves. Dwayne April 21, at 8: Colin Robertson April 22, at 8: Lori April 23, at 6: Colin Robertson April 23, at 9: Colin Robertson May 11, at 9: Jo, The undocumented deposit should just be excluded from your qualifying assets.

Colin Robertson June 18, at Darius Williams June 24, at 6: Hello, My wife and I took out an unsecured loan to buy property 15k, the property appraised for 31k, and we have the deed free and clear. Milissa July 10, at 5: Colin Robertson July 10, at Millissa, Maybe the 40 rental properties scare them? Jan July 22, at 3: Colin Robertson July 22, at Stephanie July 25, at 7: Colin Robertson July 26, at 7: Aliyah July 30, at 5: Colin Robertson August 2, at Ann White August 8, at Anne August 10, at 5: Dustin August 13, at 8: Ruth August 19, at Colin Robertson August 20, at 9: Ruth August 21, at 8: Colin Robertson August 22, at 9: Ruth August 22, at 1: Thanks so much for your help Colin!

Have a wonderful weekend! Nicole August 26, at Colin Robertson August 26, at 3: David L Richards September 6, at 8: Colin, In connection with the asset reserve requirement for a mortgage application, I provided stock in a publicly traded major utility which can be sold and proceeds received in one week from the request to sell.

Colin Robertson September 8, at 8: Colin Robertson September 25, at 8: Wayne September 25, at 1: Colin Robertson September 28, at Wayne, Reserves are just required for the loan to fund, to ensure you have necessary cash to make future payments. Melanie September 28, at Colin Robertson September 29, at 6: Melanie, You should ask your lender to be certain but retirement assets are often used for down payment, closing costs, and reserves, though underwriters do generally like to see that you have some money in the bank as well.

Julia September 30, at 9: Colin Robertson October 1, at Julia, Hard to say, but if you state your case and it makes sense to the underwriter and provide documentation when necessaryit has a chance. James February 1, at 1: Michelle February 10, at 8: Colin Robertson February 11, at 3: Karen February 20, at 4: Hi Colin, Me and my husband are looking into buying our first home.

Anne February 22, at 9: Colin Robertson February 22, at 7: Karen, Best to speak with a loan officer experienced with USDA to see what is specifically needed for your particular loan amount and loan scenario. Anne, It might actually make sense to speak with some lenders now, as opposed to waiting until the 11th hour, to see what potential issues you may have once it comes time to apply for a loan. Heather March 14, at Colin Robertson March 16, at Heather, The lender will likely see the payment history on his credit report though if enough time has passed it may not be an issue.

Jane March 29, at 8: Colin Robertson April 4, at 6: Tim April 7, at 2: Michelle Moretz April 8, at 6: Dear Colin, My husband and I want to buy a house by August of this year however, we each have some weaknesses regarding our situations.

Colin Robertson April 18, at Stacey May 1, at 6: Colin Robertson May 2, at 9: Mae Francis May 18, at 2: Hi Collin, My husband borrowed from his k to use as a down payment for a home purchase which we received and deposited into his checking account. Lisa May 31, at Colin Robertson June 1, at 8: Lisa, Probably best to ask your lender when you should move the money to ensure it runs smoothly. June 7, at 5: Colin Robertson June 9, at 9: B, If it is indeed counted and the DTI is exceeded, you could ask for an exception or play around with the numbers down payment, etc.

John June 21, at 7: Colin Robertson June 24, at 4: Maureen August 2, at 4: Colin Robertson August 4, at James August 24, at 6: Colin Robertson August 25, at 4: James, If you want the definitive answer you should probably ask the lender directly.

Joleen September 10, at 5: Colin Robertson September 12, at 5: Joleen, Not sure what will happen to them, sorry to hear that happened to you. Moe October 1, at 3: Colin Robertson October 3, at 1: Colin Robertson October 19, at 8: Ruth December 12, at 3: Thanks for being so attentive and helpful to all your web page visitors.

Hannah December 12, at 6: Colin Robertson December 13, at Hannah, It sounds like you have sufficient assets, but an income shortfall?

Matt Malec February 10, at 1: Colin Robertson February 15, at 3: Kelly March 4, at 3: Colin Robertson March 5, at Aaron March 22, at 5: Colin, I am interested in purchasing a single family home as an investment property. Lou March 27, at 8: Colin Robertson March 27, at 9: Lou March 27, at Colin Robertson March 27, at Lou, You may want to determine what types of loans you can qualify for and see if reserves are going to be an issue for sure, then compare costs…FHA forces mortgage insurance on its borrowers, whereas you might not need it with conventional financing.

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