Did You know that Fannie Mae does NOT have an issue with a jointly held bank account when only one of the account holders is applying for a mortgage loan?
This becomes an issue when explaining large deposits made by a non-applicant who has a joint account with someone who is purchasing a property. Large deposits are those deposits outside of the person’s salary.
As long as the Borrower has joint ownership of the account, we are required to evaluate any large deposits to make sure they are not borrowed funds. When applying for a loan, a borrower can not borrow money to borrow money. Gifts are allowed, which has no repayment clause in the gift letter.
Any large deposits must be from an acceptable source. This also applies to investment property transactions.
If you have questions about gift funds or borrowed funds, then reach out to one of our loan consultants who can help structure a loan for you.