When applying for a mortgage, does it matter how long your down payment money is in an account?

Answer 1

The first answer is close, but not quite accurate.

You will usually have to provide the lender with the most recent two months' bank statements. If the money been in your account for the entire period covered by the statements, it is seasoned and there is no problem.

If the money came in during the period covered by one of these statements, it is not seasoned, but it can still be used in some circumstances. The lender will want to know the origin of the money. Acceptable origins: bonus, tax refund, selling a car. Unacceptable: gift, credit card advance, any loan. Might be acceptable under certain circumstances: Cash (for community reinvestment loans) or loan secured by owned asset like 401K or insurance policy. (Note that gift money might be accepted, but will not be counted as your money, it will be counted as a gift and subject to different rules.)

Good luck.

Answer 2

Yes. We call it "seasoning".

Generally, the money must be in your account 60 days prior to application.

This length of time requirement makes it more likely that the money is yours, not borrowed.

Gift money can be fine in most cases, so if that's where it's coming from, tell your lender.

And big jumps in your balance can be ok within the 60 days, but expect to have to document the source and deposit.

Answer 3

NO: The only thing that matters to the mortgage company is that the property has enough equity above the mortgage to permit them to make a profit in the event that there is a default.

Answer 4

It can. The banks most often ask for your last two months worth of statements-- so as long as its that long, it should be okay.