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assets are used the following is required to determine the Business’s liquidity ( stability) after the funds are withdrawn: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Our lender partner Underwriter takes a 3 month average of the gross deposits and divides into the amount being withdrawn.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.
$150,000 used for down payment. Average business deposits are $225,000. Ratio is 1.5. The money is good to be used.
Same $150,000 for down payment. BUT average business deposits are $195,000. Ratio is .76. The money is NOT good to be used.