Can I use cash deposits?
Cash deposits can rarely be used for any loan application purpose. This includes cash received from friends, family or the sale of items you had, or cash you have kept at home and plan to deposit back into your account.
You can however take the cash you have on hand and pay bills by money orders, and pay cash for items you would normally deplete your checking account with. For example, if you had $300 in cash from a birthday gift, you could buy your weekly groceries and pay cash, get your haircut and pay cash, and get a money order to pay your car insurance instead of using the money in your checking account. This would allow your checking account to accumulate $300 in acceptable funds from your payroll because you used the cash for something other than your down payment.
Occasionally, they will accept small deposits for cash if you have an occupation that receives tips, but not every lender will allow this. Its better not to use this as a source of funds for closing.
Learn more: Asset Related Questions
- Can I use cash deposits?
- Can I take a cash advance on my credit card?
- Can I deposit checks from sources other than my payroll check into my account?
- What about transfers into my account from another account?
- What do I do if I have already received money in my account?
- What other things does the lender look for on account statements?
- When do I need to have my down payment?
- What is required for gift documentation?
- My agent is writing my offer this afternoon and I forgot my checkbook. Can my girlfriend (or mom or brother or friend) write the earnest money check for me and I can pay them back?
- I don’t have enough money in my account for my earnest money. Can I write a check from my credit card account?
- Will my earnest money count toward my down payment?
- Do I always get my earnest money back if I don’t purchase the home?
- What other expenses will I have to incur in addition to what is on the closing cost estimates provided by my loan originator?