Large Deposits Going Into a Self Employed Borrower’s Business Account

Did You know that our lender partners DO NOT care about large deposits going into a self-employed Borrower’s business account?

Many of our borrowers are self-employed and prefer to use their business funds to purchase a property. We will allow for the use of business funds.

When business assets are used for the down payment and closing costs, the following is provided:

• Minimum 2 months of business bank statements

When business assets are used the following is required to determine the Business’s liquidity ( stability) after the funds are withdrawn:

• Current financial statement AND/OR:
• 3 months of business bank statements

Our lender partner Underwriter takes a 3 month average of the gross deposits and divides into the amount being withdrawn. It MUST be a 2:1 ratio as determined by our wholesale lenders.

Example 1:

$150,000 used for down payment. Average business deposits are $225,000. Ratio is 1.5. The money is good to be used.

Example 2:

Same $150,000 for down payment. BUT average business deposits are $195,000. Ratio is .76. The money is NOT good to be used.

Contact our office and will connect you with a loan officer who came directly with self-employment financing.