DOWN PAYMENT - Acceptable Sources of Funds
Did you know that lenders don't accept all types of money for down payment? Lenders want to know where the money is coming from that is being used for the down payment. You might be surprised that some sources of money are not accepted by lenders.
Most borrowers ask how much of a down payment that they need to purchase a house. But it is equally important to know where the money is coming from. Lenders will decline mortgages if the source of down payment is not acceptable.
Anti-money laundering and fraud prevention are the reasons lenders need to know where the funds are coming from. A 90-day history to show where the money is coming from is the standard requirement for lenders.
Here are the acceptable sources of down payment:
- Savings account
- Investment accounts
- Gifts from an immediate family member
- Business account (your own business)
- Sale of existing property
- Deposits on the purchase
Other sources of money may have restrictions or may not be accepted as down payment. Make sure that your down payment will be accepted by lenders before making that offer to purchase.
For more information on down payment, contact your local Mortgage Broker, Sean Stewart at 905-427-9596 or email@example.com