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, are often reluctant to provide such letters nowadays 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, e.g. doctors, lawyers, and even Realtors. 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 their lender.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 310167