Forgotten Your Password?

Need to Register?

Question Icon

How long does money need to be aged so it can be used as down payment?

Can it be as little as 2 months? by sophie_b872 from Anaheim, California. Feb 13th 2017 Reply


Maureen Martin (MaureenMartin)
#5 ranked lender in California - 10 contributions

You need to have the funds in your account for at least 2 full billing cycles if it's conventional financing. Conventional financing requires 2 month's bank statements. Any large deposits within those last two billing cycles will require sourcing. I hope that helps! :) Maureen MartinMMartin@JMJ.ME

Feb 13th 2017
1
0
Dan Paladin (dpaladin)
#1 ranked lender in California - 433 contributions

As little as 60 days seasoning is sufficient....562.254.5616

Feb 13th 2017
1
0
Ray Jones (OneRay)
#873 ranked lender in California - 10 contributions

Two months is correct when documenting personal investment but GIFT FUNDS have less stringent documentation requirements. No repayment of the gift funds may be required by the Donor but it is not forbidden to repay the gift at some point or over time. Ray@OneRay.com (559) 446-2882

Feb 13th 2017
1
0
Martin Mesa (info_966_586)
#639 ranked lender in California - 18 contributions

For most loan programs, any money that isn't already showing up on your last two monthly statements will need to be either considered a "Gift" which would require a gift letter from the person that gave you the money OR you'll need to explain in a letter where that money came from and also show some sort of paper trial proof to support where the letter claims it came from. For example, if you say the large deposit came from a retirement account distibution, loan, or withdrawal, be prepared to show documentation from the retirement account custodian showing they sent you the money. If you have further questions, you can email me at mmesa@rateonefinancial.com or call (818) 284-6480 ext. 103

Feb 13th 2017
1
0
Jericho Cherry (Jerichocherry)
#58 ranked lender in Virginia - 1,107 contributions

Yes it can be as little as 6 months.

Feb 13th 2017
1
0
Larry Gray (lgray_312_247)
#566 ranked lender in California - 1,127 contributions

You have the correct answer already in comments. I would add that there are ways to make a conventional loan or government loan work with some gifted money from a parent, sibling, Uncle, Aunt or Cousin. However, any money in your account not accompanied with a signed gift letter for the money does have to be seasoned for a couple of months (other than money traceable to earned income).

Feb 14th 2017
1
0
William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,938 contributions

The rule is that we require 2 months bank statements.. if we see the deposit ($500 or more)on those two months bank statements, then you are required to document the source.. if the deposit is not showing on the most recent 2 monthly bank statements, then the funds are considered "Seasoned" for qualifying purposes, and no further documentation is required. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Feb 15th 2017
1
0
Bill Cook (loanpro)
#636 ranked lender in California - 43 contributions

For about 98% of the lenders 60 days, However, I do recall recently there was one which required 30 days and they are a Non-QM lender..

Mar 22nd 2017
0
0
Subscribe to our news feed.