I think it's time we told you one thing that is making our ability to get you a FHA mortgage a bit on the difficult side. It's not something that's impossible to overcome, but it will make both your life and our lives a lot tougher when it comes to processing your FHA mortgage application.
Unverified Deposits on a FHA application.
You're probably thinking, okay what the heck do you mean by unverified deposits? Unverified deposits are deposits that you can't explain where the source came from.
For every deposit that is greater than 1% of your sales contract (example: $100,000 purchase price = anything over $1,000 deposit) has to be verified. So that means if you had cash laying around the house, you could not use those funds IF it were over 1% of your contract. If in this example, you had $500 to deposit, that would not need to be verified.
Basically, the ways the FHA rules are written, they want you to be able prove where every penny came from if it's a large deposit (1% of your sales contract). Why do they do that? We didn't write the laws, but we assume they don't want you to go sell a bunch of drugs to save for your down payment. Kidding, not kidding.
We love our customers and don't want you to feel frustrated.
More pro tips to come.