My partner and I just closed on the sale of a property we owned and the money is being deposited into our joint llc account. We are in process of buying another home and sellers underwriter is asking for 60 day statement of our joint llc account. Our problem is that the account closed due to inactivity because we didn’t have money in business checking account and we reopened it. Is their any exception like a bank time stamp or letter that can get around the 60 day proof of statements needed for Fannie Mae?
Investor · Lakeland, FL · Member since 2017 · 1k+ posts · 1k+ votes
3y
Underwriting is big on LOX (which is my broker's term for "Letters of Explanation"). Any time there is something weird, they say, Write a LOX and explain it. If the answer is that the account closed, and you reopened it, underwriting would likely say, "Well, then, we wouldn't expect statements during those times... especially when the ones you provide show it had zero balance leading up to the closure, or whatever. They might ask to go further back to give the most recent 60 days that exists. It just depends on whether that is really a Fannie Mae requirement, or what the purpose of the requirement is if it is an underwriting requirement. Usually the idea is they are looking for you to explain any large transactions. If there were none, it might be that the 60 day thing isn't a concern. Just explain things to the underwriter and ask them if you could provide something else. There's really no dodging the issue, you (and they) are just looking for the solution that will satisfy the requirement.
My partner and I just closed on the sale of a property we owned and the money is being deposited into our joint llc account. We are in process of buying another home and sellers underwriter is asking for 60 day statement of our joint llc account. Our problem is that the account closed due to inactivity because we didn’t have money in business checking account and we reopened it. Is their any exception like a bank time stamp or letter that can get around the 60 day proof of statements needed for Fannie Mae?
All you need to do is show the final HUD or escrow's closing statement, from the sale of your property, to satisfy the seasoning issue. Your Loan Officer should know this and should have advised you accordingly.
It's so important to work with Mortgage Brokers or Loan Officers that understand how to get investment type loans done.