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What are the type of cash deposits that are questionable for mortgage?

by thuy_nguyen687 from Garden Grove, California. Nov 10th 2015 Reply


Pouyan Broukhim (PBFinancial01)
#966 ranked lender in California - 23 contributions

large unexplained cash deposits are always questionable.

Nov 10th 2015
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Kat Whitman (kat@whitmanmet.com)
#951 ranked lender in California - 6 contributions

hey Thuy...this is Kat - is this the Thuy I know? :)You would have to have all deposits sourced.

Nov 10th 2015
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Manny Gigante (manny@bayareafhaguy.com)
#1032 ranked lender in California - 4 contributions

any cash deposit that would be deemed irregular or unsourced( undocumented) based on 90 days of bank statements. usually can be cleared up by a letter of explanation about the deposit. but each lender has their own guideline on sourced funds. this was put into effect after the Patriot act.

Nov 10th 2015
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,041 contributions

The answer can be very lengthily, so without knowing exactly what types of deposits your talking about, it's difficult to address your question directly. Lending guidelines vary.. some say you must explain all cash deposits over $500, while others say you have to explain cash deposits that are over 10% of your monthly income.. The rule is that you cannot borrow money for the down payment, or have income from illegal sources, so if you have cash deposits, they must be explained. Payroll that is directly deposited is easily verified since they verify your employment.. Transfers into your account from another account will initiate the requirement that you provide statements from the donor account and it must also be underwritten to the same standards/guidelines as your primary disclosed account. If you have a tax refund electronically deposited, then your tax returns will support your refund.. etc.. but if you have $2000 counter deposit and you cannot verify it's source, then the lender could disallow all the funds in that account.. (bad thing).. It's best to discuss this with your loan officer.. keep in mind that he works for you.. he should be able to help you get past this.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Nov 12th 2015
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