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FHA is picky when it comes to sourcing funds for down payments, and the issue with using business funds is that the business bank statements would then have to be examined. That being said, if this occurred several months ago, the deposits would typically be considered as “seasoned”. Lenders usually require the 2 most recent months' bank statements and have to address deposits shown on them. Deposits from further back (unless underwriter is expressly aware of them) aren’t usually required to be sourced.
Hello: I have a tricky situation. My wife and I are applying for FHA loan. My wife has a business(sole proprietor) and I am employed. A few months ago, she had written checks to transfer funds from her business account into our joint checking account. The loan officer says that this money can not be used for FHA down payment, because she had written the checks in the husbands(my) name instead of her own name, though we have the joint account. The loan officer thinks that it will trigger a red flag to the underwriter. To make the matter little bit easy, though she wrote check to husband(my) name, in the comments section below, she wrote “Self”. We think, since we are married and have joint account, it should not matter, whether she writes check to the husband or to herself. Can some one please give a second opinion on this? Thank you in advance. AP
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