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Ugh....I screwed up royally
Most of our downpayment has been sitting in one of my dad's savings account for the last two years. It was part of an inheritance and I figured if it was there we wouldn't touch it so we never bothered transferring it over to one of our accounts. We got pre-approved in the beginning on March and I should of gotten the money then, but I was busy at work so we just deposited it on April 9th. Of course we found our dream home yesterday and now there is nothing we can do because we have to wait until the money is seasoned for 30 days and I doubt that the house is going to last on the market until May 10th. I feel horrible because it's my fault - I should of gotten my act together and gotten the money back in the beginning on March when we got pre-approved and we wouldn't be in this situation, but I didn't and now we will more than likely lose a great house in our #1 choice town/neighborhood.
Sorry - I needed to vent.
Re: Ugh....I screwed up royally
What? I have worked in banks and I have never heard of anything like this. Typically a large paper check that is deposited can be held for up to around two weeks. A wire transer's funds are available immediately for use and withdrawal. 30 days is a load of crap. Where do you bank? Is the account you put the money into new? Did you just open it?
You need to read this. I realize that Wikipedia isn't the best source, but I'm short on time and it does explain REG CC.
http://en.wikipedia.org/wiki/Expedited_Funds_Availability_Act
I was thinking this as well, the only caveat is that her dad could give $13,000 to her and $13,000 to her H. If it's a joint account, the other account holder could do the same thing which means they could get $52,000 total. If he gave any more than that, he'd have to pay a gift tax on it.
Maybe your dad could temporarily add you as a joint account holder?
You have to get your dad to "gift" it to you.
Being a joint account holder won't work. We had a similar issue. DH has a bank account that he has had since he was a child. His father's name is still on it (we wanted his dad to have access to the account in case of emergencies). Anyhow, even though it was a joint account, FIL would have been required to "gift" DH the money and there were tax implications. Luckily, we had enough money elsewhere to work around it, but had we not, it would have caused us issues.
Banks don't like to see "monetary gifts" when it comes to lending money.
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Sorry. I misunderstood the meaning you wrote. You meant from the lending perspective the money being newly acquired in the account and not the bank holding funds. Regarding the lender...
Money is money, and having it seasoned for 30 days before going to a lending situation is still something I have not heard of. It's either in the account and available for use, or it's not. Plain and simple. If they want to verify that the funds are not a loan that you have to pay back, then ditto PPs, and get documentation that it is a gift. And, if that's a no-go I'd find another lender.
DH and I just had a large deposit two weeks ago and have no trouble proceeding with a loan. We just verified where the funds came from and that they aren't a loan.
I had to provide documentation on several amounts that were deposited into our accounts that weren't direct deposit from our employers. It was no big deal, as long as I could provide the paper trail of what that money was. I'd definitely get clarification from your broker (maybe that's all he meant by issues -- a little more work on your part, but nothing that would break a deal) or find another one.
i didn't read all the responses as they're too verbose, but a notarized gift letter from your father stating that it's a gift, not a loan that needs to be repaid, should be sufficient to satisfy the lender & its underwriters. yes, double check w/your loan officer/broker, but this should be sufficient.
You should be fine if you have documentation to show where the money came from. My grandfather passed away in July 2010 and I was due to inherit a substantial amount of money. Due to complexities with the trust and beneficiaries who don't get along, we didn't get the majority of the money until May 6, 2011, but we knew the money would be in the account by the middle of May. We put our offer in on our house on May 1st, offer was accepted on May 4th because I had documentation showing that I was due the money, and I deposited the money into my account on May 7th. All we had to do when obtaining financing for our house was show where the money came from, which we were able to do. As long as you can do that, you *should* be able to put your offer in now - so long as the money is available at closing.
RIP Dr. Irving Fishman - 10/1/19-7/25/10 - thank you for holding on for me.
You made my wedding day complete.
I am a junior underwriter. This is 90% incorrect.
First off, are you doing conventional or FHA? If you are doing an FHA loan, you will not have an issue with this being a gift. However, if its a conventional loan, you HAVE to contribute at least 5% of your own funds. Your father can gift you funds, but you have to prove that you yourself are bringing in that 5%. That is probably going to be an issue.
Secondly, I have never seen an underwriter look at bank accounts the day an offer is put in. What bank is this?
MH is going to call another broker tomorrow and see what they say. Our realtor knows the sellef's realtor and he said that he would alert him if any other offers come in while we're trying to figure this out. The money from my dad is 20k so it's our downpayment and closing cost. According to the broker if we put in an offer tomorrow and it's accepted the bank is going to want proof when we go for the commitment that when we put down the earnest money that the money had been in the account for 30+ days...arghh!
ETA we're doing a conventional 5% down loan.
We are doing a conventional loan and receiving gift money from DH's family. Our lender told us we just need a letter stating that the money is a gift from DH's parents. He said it would absolutely not be an issue and they said they deal with the situation all the time. I would talk to a different lender if yours can't work with you.
If you love the house, put in an offer and ask for a longer loan contingency so you can look for a different lender. The seller won't need proof on the first day especially if your realtor explains the situation. I'm sure there is a lender that can make it happen.
If it's "only" 20k, you won't even have any gift tax issues. Nothing to worry about here at all. Your dad gifts 10k to you in one check, and 10k to your husband in a second check - done. He may just need to write a letter saying it was a gift and isn't to be repaid.