How can I explain "unseasoned" funds deposited from the sale of a car and cash reserves so that my va loan will be approved?

Asked by Bchicboutique, Los Angeles, CA Mon Oct 29, 2012

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Gail Mercedes…, Agent, Beverly Hills, CA
Mon Jul 1, 2013
Lender require the funds are seasoned for a period of time. The sale of a car can be verified with sale receipt. The other cash reserves sources have to be verified.

Gail Mercedes Cole
EXP Realty
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Mon Oct 29, 2012
Hi Bchicboutique,

You will need to document (paper-trail) the sale of the car. Didn't your loan originator tell you how to do this? I guess not if you're asking this question on this forum...

You will need to obtain a copy of the Bill of Sale from the CA Dept of Transportation to verify the sale, and a print out of the Kelly Blue Book valuation of the car, to show the value of car relates the the sales price of the car (the Underwriter will not accept a $40,000 price tag for a beat up 1994 Honda with 450,000 miles) . Show the copy of the check, (was the car paid by check?) with your deposit slip to your bank account & the print out of your accounts ledger.

That should do it for you. Please feel free to contact me directly if you have any further questions, I'd be glad to help.

All the best,

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline refinance loans (NO minimum credit score, NO appraisal required) Go Green rehab loans, HomePath, Investor Friendly (10 financed properties), VA, VA Refinance loans (NO appraisal required on IRRRL loans), USDA loans, Jumbo loans, Conventional loans, plus, we allow Escrow Hold-Backs!
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Dan Tabit, Agent, Issaquah, WA
Mon Oct 29, 2012
A letter of explanation is usually sufficient. Did you include the car you owned on your initial application? If so, you could say, "The 74 Nova indicated on my loan application has been sold resulting in $X,000 being deposited in my checking account, to be used for the down payment of the home. Attached is a copy of the bill of sale."
I can't guarantee this will work, but if it's true, or you revise it to your situation and it's true it would be my best suggestion.
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