Essex Guidelines for Source of Deposits

Posted by admin on May 15, 2013

“Large Deposit” defined

For Conventional loans run through DU/DO: Any single deposit that exceeds 25% of the total qualifying income must be sourced. If joint borrowers have separate accounts, single deposits that exceed 25% of the individual borrowers gross income must be sourced.

For Conventional loans run through LP: Any single deposit that exceeds 10% of the total monthly qualifying income, the deposit must be sourced. If joint borrowers have separate accounts, single deposits that exceed 10% of the individual borrowers income must be sourced.

For FHA loans run though DU/DO or LP: Any single deposit that is the greater of 25% or $1000 of the individual borrowers qualifying income must be sourced. If joint borrowers (or multiple borrowers) have separate accounts, single deposits that exceed 25% of the individual borrowers income must be sourced.

For all loan types: If the source of a large deposit can be identified on the bank statement (ex. direct deposit or IRS tax refund), we don’t need to obtain further explanation or documentation.

If the underwriter has questions as to whether any deposit may have been borrowed, additional documentation verifying the source of that deposit may be required. If the funds in question are not being used for down payment, closing costs, EM deposit or reserves and due diligence has been performed to ensure the funds are not from an unacceptable source, the underwriter may deduct the large deposit from the balance of the account & allow remaining funds to be used to qualify.

Should you have additional questions, please contact your department manager

4/30/13

 

equal-housing-lender-logo-vector.pngData Mortgage dba Essex Mortgage is an equal housing lender. The corporate office is located at 2200 W. Orangewood, Suite 150 Orange, CA 92868 California Department of Real Estate License No. 00936013 . California Department of Corporations #603-G833 NMLS License 70377 Data Mortgage Inc. Member FDIC

NMLS Consumer Access