I've been asked this many times:
"Hey Sergio, can I use cash that I 've been saving in my mattress as part of my down payment? Really?? Why Not?"
Unless you are making the entire purchase a CASH purchase, the answer is always no, and here's the reason behind it:
When you deposit large sums of money, it appears that you borrowed it from an unknown source or perhaps the income was never reported or taxed. That messes up your income/debt ratios. Also, the underwriter must ask for the terms of the undisclosed loan.
Banks are required (by law) to watch for anything "suspicious" or that maybe doesn't "look right" as far as large deposits are concerned. This can get a little messy all the way around. Typically, the IRS asks that Banks report any combination of cash deposits that equal or exceed $10,000 in a 30 day period.
There are many other options to consider when saving a lot of money on the side for a down payment. Consult with me (or an attorney) on best way to proceed and never tell anyone that you have a lot of cash in your home safe.
If you desire a successful future with homeownership, I'd be very please to help you. Give me a call anytime.
Have a fantastic week ahead!
Sergio Lebrija
Evolve Bank & Trust
602.618.7683
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