Acceptable Types of Assets for a Mortgage Loan

Anybody making a down payment on a home needs to know there are restrictions on how those funds can be obtained, as well as the source of any assets.

For instance, money stashed under a bed mattress cannot be used. The same goes for cash buried in the backyard.

In all seriousness, assets used to buy or refinance a home must be sourced. In other words, there needs to be a paper trail.

For example, let’s take gift funds. Often, homebuyers will get a gift of money from a relative to purchase a home. If such funds are to be used, copies of the check for gift funds will need to be documented, as well as the bank statements showing where they are coming from.

Acceptable sources of funds include, but are not limited to:

  • Checking Accounts,
  • Savings Accounts,
  • Money Markets,
  • 401Ks,
  • CDs,
  • Stocks,
  • Bonds, and
  • The documented sales of funds, such as a bill of sale on anything from a home, to a boat, to a piece of jewelry.

The other thing prospective homebuyers need to know is that underwriters scrutinize these paper trails more than anything else in a loan file. So please do not bring a pillowcase stuffed full of cash to qualify for a mortgage loan.

There are several types of mortgages available, and the guidelines for allowable funds have slight variances for each one. If you have any questions about this, call 813-707-6200. We will be happy to answer your questions.