Assets & Down Payments

  Different loan programs will require different down payments,

  from no down-payment programs to 70% financing and

  sometimes even lower.  Lenders require that you not only

  come up with the money to cover the difference, but also to

  get it from acceptable sources, and fully document the source

  and availability.

  Verification: For underwriters, it is not enough to pull money

  for a down payment out of your mattress or the coffee can

  buried in the back yard.  With the exception of "no asset

  verification" loans, lenders want to verify where the money

  comes from. This is partially to protect against fraud, and

  partially an underwriting measure to determine your

  qualifications as a borrower.

  If you can document the funds come from your personal

  savings, all the better.  The lender is all the more confident of

  your strength as a borrower as a savings history indicates a

  high level of stability.

  In addition, if you can verify additional assets beyond what is

  needed for the down payment, you are only strengthening

  your case . Additional assets or "reserves" that can be drawn

  upon during times of trouble, such as unemployment,

  medical emergencies, and similar occurrences, are especially

  convincing signs of borrower strength.

Acceptable Sources & Assets