Unusable down payment for home purchases
Yes, there is such a thing as an unusable down payment.
Not all funds are created equal.
Mortgage guidelines have rules that must be followed which dictates how much money is required and where it can come from.
Some programs will require that the buyer contribute a minimum amount towards the down payment and closing costs while other will allow for all funds to be gifted.
Common unacceptable sources of funds include:
- Sweat Equity
- Personal unsecured loans including cash advances on credit cards
- Sale of personal assets if ownership can not be established, value property determined and documented or if the sale can not be paper trailed
- Cash on hand
Every situation is different so be sure to check with your mortgage professional OR send me an email and I’ll be happy to assist you.