Middle Tennessee, TN · Member since 2015 · 102 posts · 17 votes
I'll try to sum this up with an effort to be succinct. Local bank gave us a 30 yr fixed rate through Freddie Mac on our first duplex. The duplex and loan will be in her name only. We're going to be using a small part of some funds I have with an investment firm to cover part of the costs of the deal, plus the money we have saved in our joint account. The problem is that I only added my wife's name of the investment fund on January 13th. We've been married for 4 years. They are considering any money from this fund a gift to my wife since her name hasn't been on the account for 60 days. The loan officer at the bank has looked into every avenue he can think of but we are stuck for 60 days until we can get two full monthly statements with my wife's name on it. We would have to come up with accounts prior to January 13th that had my wife's name on it before that time to pay for the property. Does anyone have any ideas on how to expedite this process or convince Freddie Mac that this isn't a gift, by their definition?
Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
10y
Don't understand that rule, you got married, there is a marriage certificate that proves you did, and you have been married for 4 years. i'm not a lawyer, but i would think there would be no problem withdrawing that money, any money ( not in a pre-nup) is considered both of yours when you get married, its not a gift if its between you and your wife only to close family members like the IRS points out. if i read your post right, you said the money is in another investment firm and not the bank ? i would contact the investment firm, i'm sure they know more about that then the loan officer from the bank.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
10y
I don't have a direct answer to your question OP, but in the interests of helping the community writ large:
This is why you don't work with loan originators unless they ask for ALL of the paperwork at the preapproval stage.
Two paystubs and a credit pull? Worthless preapproval letter.
50 pages of BS, and she or he actually looks at it all, and sends anything questionable or unusual to underwriting prior to preapproving? That's a solid letter.
It only takes one bad page to kill a deal. So all of the pages, of everything, need to be looked at.
I've been known to text listing agents cell phone pics of the 2 inch thick file I have on someone that has a preapproval letter with my signature at the bottom, so they know why to take THIS offer and not the one for $7k more from Wells. It works.
Back to you, @Brandon G. - I've never put myself in this situation, so really not sure. Can't generally use gifts on investment properties. One possible avenue:
- You say that this money is only a small portion. Stop spending any of her money. ONLY spend your money. Beyond that, even start putting everything on your CC. Every $1k of marital/household expenses that you pay for is $1k freed up in her account(s). If her accounts ONLY have income, and have NO expenses, it should take like 1-2 paystubs for her to have a crap ton more money with her name on it.
- Pay all that CC debt back and set everything right the day you get your keys.
- Look at kids college fund accounts and the like that already have her name on it. Just last month I had to raid some kids' college fund to close a deal because some idiot lender didn't ask for bank statements prior to preapproving and/or didn't actually look at them (like your situation). I calculated the interest at 10% and informed the parents that the day after we close, they owe their kids that college fund money back WITH INTEREST (I think that's fair, do you? :P ).