Top 5 Non-Allowable Funds
Coming up with the down payment and closing costs can be challenging enough, but did you know that not all of the money you plan on using to buy a property can necessarily be used? Here are the top 5 non-allowable funds (with few exceptions) when financing a property:
• Funds coming out of a business bank account
• Credit card cash withdrawals
• Non-payroll checks
• Sale from jewelry or random items
Keep in mind that your lender will review every single deposit you have made on every single bank statement. All instances of non-allowable funds will be “backed out” of your total account balance.
Tip! Move ALL funds used to purchase a property into one bank account for two months and make NO deposits or transfers in and out of the account before buying a property.