HomeBridge is enhancing its FHA guidelines regarding large deposits.
HomeBridge will only require an explanation and sourcing documentation of recent large deposits when the deposit(s) exceed 2% of the property’s sales price (current policy requires documentation when the deposit(s) exceed15% of the borrower’s combined monthly gross income).
This policy is effective immediately and applies to both new submissions and existing pipeline.
HomeBridge requirements regarding deposits identified on the borrower’s bank statements are as follows:
- Direct deposits that clearly identify the source (i.e. payroll deposit, social security/pension deposit, etc.) do not require explanation/documentation
- Deposits that do not clearly identify the source require an explanation and sourcing documentation from the borrower when an individual or the sum of multiple deposits on the bank statement exceed 2% of the sales price of the property.
- Property sales price $100,000: 2% = $2000.
- If the sum of all un-sourced deposits for that statement is $2,000 or less, no additional information required.
- If the sum of all un-sourced deposits for that statement is $2,001 or more, an explanation is required.
Refinance transactions will require explanation and sourcing documentation to be provided if recent large deposits exceed 2% of the appraised value.
The FHA program matrix will be updated with this information and posted on HomeBridge’s website.
If you have any questions, please contact your Account Executive.