Mortgage approval issue

3 Replies

So I'm trying to get approved for a conventional loan for an investment property. My wife and I have a joint bank account, And she also has her own personal account. I'm trying to transfer money from my wife's personal account to our joint account, but the lender is saying that I'm not allowed to do that as it is considered "a gift." It seems like absolute insanity to me. Does this sound right to you guys? Any ideas as to how to get money for the down payment? I'm thinking HELOC or 401k loan? Thanks for your advice.



Originally posted by @Thomas Lowe :

So I'm trying to get approved for a conventional loan for an investment property. My wife and I have a joint bank account, And she also has her own personal account. I'm trying to transfer money from my wife's personal account to our joint account, but the lender is saying that I'm not allowed to do that as it is considered "a gift." It seems like absolute insanity to me. Does this sound right to you guys? Any ideas as to how to get money for the down payment? I'm thinking HELOC or 401k loan? Thanks for your advice.

You are assuming the money in her account is also yours, it isn't. The bank knows this, the courts know this, and now you know this. She set up the account separately and you agreed. That was in order to give her the right to solely dictate what happens to that money. You are living separate lives making believe you are 100% united. That doesn't fool the bank. Banks know that people who keep separate bank accounts are greater risks and they treat it as such. Keep in mind they want to get their money back eventually and they don't want the hassles of "infighting" if things should go awry. It's the "golden rule". He who has the gold, makes the rules.

Money transferred from an account is someone else's name is not an acceptable source of down payment funds on an investment property.  Insane or not... its the rule.  

Both a HELOC draw or a 401k loan are acceptable sources of a down payment on an investment property. An unsecured loan like a credit card cash withdrawl or a loan from a family member are not acceptable source