Â· Savings and checking accounts Â· Cash saved at home
Â· Cash accumulated with private savings club Â· Savings bonds
Â· IRAs Â· 401(k) and Keogh accounts
Â· Stocks and Bonds Â· Thrift Savings Plans
Â· Gift Funds Â· Sales proceeds
Â· Sale of personal property Â· Commissions from sale
Â· Trade Equity Â· Rent Credit Â· Sweat Equity
Â· Collateralized loans Â· Grants and loans
Â· Employerâ€™s Guarantee Plans Â· Employer Assistance Plans
In addition, any funds used for closing must be SOURCED, meaning you need to document with a paper trail where they came from. The lender also has the right to request additional documentation if the source of funds seems fishy. For example, if your parents "gift" you money for a down payment, the lender will likely ask to see a copy of mom and dad's bank statement to prove they had the money to give you. In other words, they themselves cannot just take a credit card advance and deposit it in their account and then gift it to you.
Does this make sense? You can thank the Patriot Act for this. Ever since 9/11 the government has made lenders keep an eye on transactions like this to make sure people aren't laundering money through real estate transactions. Hope this helps!
Loan Officer -NMLS #977416
WCS Lending, LLC
Phone: 866.936.5363 ext. 278