General Information on Using Cash For Down payment Mortgage Lenders
Cannot verify down payment l information on acceptable sources of Cash for down payment Florida Mortgage applicants
closing cost and minimum cash investment requirements, and
types of acceptable sources of Cash for down payment Florida Mortgage applicants funds.
Closing Cost and Minimum Cash Investment Usually Requires the funds to be sourced.
Under most Cash for Down payment Florida Mortgage Lenders programs, the Cash for down payment Florida Mortgage applicants is required to make a minimum
down payment into the transaction of at least 3.5% of the lesser of the
appraised value of the property or the sales price.
Additionally, the Cash for down payment Florida Mortgage applicants must have sufficient funds to cover Cash for down payment Florida Mortgage applicants -paid
closing costs and fees at the time of settlement. Funds used to cover the
required minimum down payment, as well as closing costs and fees, must
come from acceptable sources and must be verified and properly documented.
Florida Mortgage Lenders That Accept Cash For Down payment!
Acceptable Source of Funds
Earnest money deposit
CASH cash for down payment Florida Mortgage Lenders.
Savings and checking accounts
Cash saved at home
Cash accumulated with private savings club
Sales proceeds cash for down payment
Sale of personal property
Commissions from sale
401(k) and Keogh accounts
Stocks and Bonds
Thrift Savings Plans
Collateralized use cash for down payment
Grants and use cash for down payment
Employer’s Guarantee cash for down payment
Employer Assistance cash for down payment
Cash and Savings/Cash In Checking Accounts as Acceptable Sources of Funds
This topic contains information on cash and savings/checking account funds
as acceptable sources of Cash for down payment Florida Mortgage applicants funds, including
earnest money deposits
savings and checking accounts
cash saved at home
verifying cash saved at home
cash accumulated with private savings clubs, and
requirements for private savings clubs.
The lender must verify and document the deposit amount and source of funds,
if the amount of the earnest money deposit
exceeds 2% of the sales price, or
appears excessive based on the Cash for down payment Florida Mortgage applicants ’s history of accumulating savings.
Satisfactory documentation includes
a copy of the Cash for down payment Florida Mortgage applicants ’s cancelled check
certification from the deposit-holder acknowledging receipt of funds, or
separate evidence of the source of funds.
Separate evidence includes a verification of deposit (VOD) or bank statement
showing that the average balance was sufficient to cover the amount of the
earnest money deposit at the time of the deposit.
Cash and Savings/Checking Accounts as Acceptable Sources of Funds
A VOD, along with the most recent bank statement, may be used to verify
savings and checking accounts.
If there is a large increase in an account, or the account was recently opened,
the lender must obtain from the Cash for down payment Florida Mortgage applicants a credible explanation and
documentation of the source of the funds.
TOTAL Scorecard Accept/Approve or Refer Recommendation
If the loan receives an Accept/Approve or Refer recommendation from the
Technology Open To Approved Lenders (TOTAL) Scorecard, the lender
obtain an explanation and documentation for recent large deposits in excess
of 2% of the property sales price, and
verify that any recent debts were not incurred to obtain part, or all, of the
required cash investment on the property being purchased.
Cash Down payment Florida Mortgage Applicants who have saved cash at home, and are able to adequately
demonstrate the ability to do so, are permitted to have this money included as
an acceptable source of funds to close the Florida Mortgage.
To include cash saved at home when assessing the Cash for down payment Florida Mortgage applicants ’s cash assets, the
money must be verified, whether deposited in a financial institution, or held
by the escrow/title company, and
Cash for down payment Florida Mortgage applicants must provide satisfactory evidence of the ability to accumulate
To verify cash saved at home, the Cash for down payment Florida Mortgage applicants must explain in writing
how the funds were accumulated, and
the amount of time it took to accumulate the funds.
The lender must determine the reasonableness of the accumulation, based on
time period during which the funds were saved, and
Cash for down payment Florida Mortgage applicants ’s
documented expenses, and
history of using financial institutions.
Note: Cash Down payment Florida Mortgage Applicants with checking and/or savings accounts are less likely to
save money at home than individuals with no history of such accounts.
Cash Accumulated With Private Savings Clubs
Some Cash Down payment Florida Mortgage Applicants may choose to use non-traditional methods to save money by
making deposits into private/community savings clubs. Often, these clubs
pool resources for use among the membership.
If a Cash for down payment Florida Mortgage applicants claims that the cash to close an Cash for Down payment Florida Mortgage Lenders-insured Florida Mortgage is from
savings held with a private/community savings club, he/she must be able to
adequately document the accumulation of the funds with the club.
While private savings clubs are not supervised banking institutions, the clubs
must, at a minimum
have account ledgers
receipts from the club
verification from the club treasurer, and
identification of the club.
The lender must re-verify the information, and the underwriter must be able
to determine that
it was reasonable for the Cash for down payment Florida Mortgage applicants to have saved the money claimed, and
there is no evidence that the funds were borrowed with an expectation of
Note: If the Cash for down payment Florida Mortgage applicants is obligated to continue making ongoing contributions
under the pooled savings agreement, this obligation should be counted in the
Cash Down payment Florida Mortgage Applicants ’ total debt when calculating the qualifying ratios.
This topic includes information on investments as an acceptable source of
IRAs, thrift savings plans, 401(k) and Keogh accounts
stocks and bonds, and
IRAs, Thrift Savings Plans, 401(k)
Up to 60% of the value of assets such as Individual Retirement Accounts
(IRA), thrift savings plans, 401(k) and Keogh accounts may be included in
the underwriting analysis, unless the Cash for down payment Florida Mortgage applicants provides conclusive evidence
that a higher percentage may be withdrawn, after subtracting any
Federal income tax, and
Redemption evidence is required.
Evidence of liquidation is not required, unless more than 60% of the amount
in the account is used.
The portion of the assets not used to meet closing requirements, after
adjusting for taxes and penalties, may be counted as reserves.
Stocks and Bonds
The lender may use the most recent monthly or quarterly statement provided
by the stockbroker or financial institution managing the portfolio to verify the
value of stocks and bonds. The Cash for down payment Florida Mortgage applicants ’s actual receipt of funds must be
verified and documented.
Cash Down payment Florida Mortgage Applicants Can Use Gifts as an Acceptable Source of Funds
This topic contains information on using gift funds as acceptable sources of
Cash for down payment Florida Mortgage applicants funds, including
a description of gift funds
who may provide a gift
who may not provide a gift
lender responsibility for verifying the acceptability of gift fund sources
gift donor’s source of funds
paying off Cash for down payment Florida Mortgage applicants ’s consumer debt
downpayment assistance programs
gifts from charitable organizations when the organization loses or gives up
its Federal tax-exempt status, and
lender responsibility for ensuring that downpayment assistance provider is a
In order for funds to be considered a gift, there must be no expected or
implied repayment of the funds to the donor by the Cash for down payment Florida Mortgage applicants .
An outright gift of the cash investment is acceptable if the donor is
the Cash for down payment Florida Mortgage applicants ’s relative
the Cash for down payment Florida Mortgage applicants ’s employer or labor union
a close friend with a clearly defined and documented interest in the
Cash for down payment Florida Mortgage applicants
a charitable organization
a governmental agency or public entity that has a program providing home
ownership assistance to
low- and moderate-income families, or
The gift donor may not be a person or entity with an interest in the sale of the
property, such as
the real estate agent or broker
the builder, or
an associated entity.
Gifts from these sources are considered inducements to purchase, and must be
subtracted from the sales price.
Note: This applies to properties where the seller is a government agency
selling foreclosed properties, such as the U.S. Department of Veterans Affairs
(VA) or Rural Housing Services.
Regardless of when gift funds are made available to a Cash for down payment Florida Mortgage applicants , the lender
must be able to determine that the gift funds were not provided by an
unacceptable source, and were the donor’s own funds.
When the transfer occurs at closing, the lender is responsible for verifying
that the closing agent received the funds from the donor for the amount of the
gift, and that the funds were from an acceptable source.
As a general rule, Cash for Down payment Florida Mortgage Lenders is not concerned with how a donor obtains gift funds,
provided that the funds are not derived in any manner from a party to the
Donors may borrow gift funds from any other acceptable source, provided the
Florida Mortgage Cash Down payment Florida Mortgage Applicants are not obligors to any note to secure money borrowed to
give the gift.
Only family members may provide equity credit as a gift on property being
sold to other family members.
The restrictions on gifts previously discussed in this topic and the restriction
on equity credit may be waived by the jurisdictional Homeownership Center
(HOC), provided that the seller is contributing to or operating an acceptable
affordable housing program