Aged Money for Down payment on mortgage?

Question

We spoke with the loan people today and they said we would have to show the money for the down payment had been "aged" for 2 months.

What I got from this is we have to have a paper trail showing that the money sat in an account for 2 months without being touched? Is that correct?

If thats true.

Does anyone know if you moved it from one savings to another if that doesn't count? Or as long as you can show the transfer on paper it can still count as aged money?

Answer 1

show the paper trail and you'll be fine.  

Answer 2

This is another way the mortgage companies are cracking down on potentially shaky borrowers. If you had a chunk of cash that just magically appeared in your account one day with no trail as to where it came from (sale of assets, gift from someone, etc.), it could be that you convinced some friend or relative to give you a "loan" for however long it takes to secure your financing. In this case, you would be defrauding the bank.

So, what they want is some paper trail over the last two months that shows where the money came from. You could have transferred it through a dozen banks, as long as it was always your account (although they would probably question why you moved that money around so much).

If you were given the money as a gift, you have to have a gift letter (may need to be notarized - I never had to get one) that says this money was a bona fide gift from a parent or something and that you do not owe that money to anyone.

Answer 3

Aged money or seasoned funds.

As long as you can prove that 2 months ago the money was in your account, you can move it to another account that is in your name.  The money has to be yours for 2 months, and be verified for 2 months.  It doesn't have to be in one account for that period of time but it sure makes things easier.

It can not be in your account 2 months ago.. go missing and show up today.

Answer 4

You just need to document that you personally have owned the money for that long.  

Answer 5

If you have bank statements that show you had the money in your accounts for at least that long, you will be fine.  Mostly they are trying to make sure that you aren't getting the cash from your parents or someone else for the down payment.