Seasoned Funds: Earned Income; Equity Lines; In Bank for 3 Months

This is a quick review of “Seasoned Funds:” money that has been in one’s bank account long enough to be considered one’s own funds (there are no large deposits on the bank statements indicating the funds were recently deposited).

Lenders require borrowers to have “seasoned funds” for down payments to make sure funds were not recently borrowed (potentially impacting debt ratios). Seasoned funds also prove a borrower’s ability to save (another positive attribute from a lender’s perspective).

Seasoned funds are not just funds in bank and investment accounts, however. Earned income (salaries and bonuses) and equity line funds from a property already owned are also considered seasoned funds.

We have had many instances involving borrowers collecting large bonuses or payments for contracts at the 11th hour in order to use the funds for a down payment.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646