Using Pooled Funds To Secure a Mortgage: A Quick Guide

If you have your sights set on a new home, you’re in for the ride of your life! One of the first stops on your journey is to gather up enough funds for a down payment and closing costs. If you’re one of the lucky ones, you’ve already got this covered. Realistically, you’re probably a little overwhelmed and thinking of creative ways to get your hands on some cash.

At MortgageDepot, we understand that the financial aspects of purchasing a home are pretty daunting. We’re here to provide options that will get you into your dream home. One way to do that is to use pooled funds as an asset source.

What Are Pooled Funds?

Pooled funds are savings from family members who currently live together and plan to continue to do so in the home in question. Here’s an example:

Let’s pretend you currently live with your spouse and mother-in-law, and you plan to continue this living arrangement indefinitely. If you want to purchase a new home, your assets, your spouse’s assets and your mother-in-law’s assets can make a positive impact on your ability to qualify for a mortgage.

Using Pooled Funds To Secure a Mortgage

We work with lenders that allow borrowers to use pooled funds from family members as an asset source. Here are the details:

• The family member(s) must have lived with the borrower for the past 12 months.
• The family member(s) and the borrower must continue to reside together after the home purchase.
• A notarized letter is required to use pooled funds.

Does the thought of a notarized letter sound a bit complicated to you? No worries! The letter needs to include the following information:

• The source of the pooled funds
• A statement that the family member didn’t borrow the funds from elsewhere
• The family member and borrower’s relationship

Contact MortgageDepot Today!

If you are in the market for a mortgage, give us a call. Our knowledgeable loan officers will connect you with a mortgage product that maximizes your funds and makes financial sense!

Contact one of our loan consultants to learn more.