Large Deposits Into Borrower’s Business Account

Did You know that conventional wholesale lenders DO NOT care about large deposits going into a self-employed Borrower’s business account?

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

1) Minimum 2 months of business bank statements
2) Lender determines they are typical for the business

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assets are used the following is required to determine the Business’s liquidity ( stability) after the funds are withdrawn:

1) Current financial statement AND/OR:
2) 3 months of business bank statements

The Underwriter takes a three month average of the gross deposits and divides into the amount being withdrawn. It must be a 2:1 ratio as determined by conventional 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 NOT good to be used.

Self-employed borrowers have many options when it comes to income or assets. Contact our office and one of our experienced loan consultants can give you great advice. Don’t hesitate, contact us.