I am in the process of closing on a primary residence through conventional financing.
I have a unsecured line of credit, that i occasionally move money into my main checking account, when I pay contractors for work on rentals etc. This amount, has been less than 1800 dollars in total deposits over the last 30 days.
My downpayment will be somewhere around 93k for the primary residence.
My question, is will the underwriter look at these funds coming in, even if they are small compared to the overall downpayment and deny the loan? Or if they do see them, will just ask to source it, and if I say it was from an unsecured line of credit, that amount will not be allowed to be used for downpayment.
I normally due this process, but lost sight on how the mortgage company might look at it.
Stop these cash advances from an unsecured line of credit into an account that has (or will have) your down payment funds in it, immediately, and call your lender. I haven't seen all your finances so I don't know how it'll play out, but you need to immediately call your lender before you do anything that might further make it look like you're trying to buy a house with a credit card like it's 2006.
@Chris Mason is absolutely right. Call your lender.
At the very least, they won't allow you to use those funds for down payment. At the worst, they may re-underwrite the deal because of the new credit revelations and depending on your numbers, turn it down for debt ratio concerns.
I wish you the best.