This is a reminder that lenders do not allow borrowers to use business funds (from any “business account”) towards a down payment or closing costs, unless borrowers can get a letter from their CPA that states the withdrawal will not adversely impact the business. CPAs, however, rarely provide such letters now days b/c of the potential liability.
This is a problem that surfaces time and again with our borrowers who own their own businesses or practices (doctors and lawyers). Funds in any account with a business name on it will be deemed “business funds” even if the account is used for personal expenses.
Borrowers need to be reminded of this, and they need to discuss the source of every penny of their down payment and closing costs with us.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646