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Assets, reserves and funds to close

This category covers the money side of a loan file rather than the income side: reserves, down payment funds and cash to close. It explains seasoning, gift funds, earnest money, brokerage and retirement accounts, crypto and RSU proceeds, business funds, borrowed funds and asset depletion, and how lenders prove each one from statements. Start with Mortgage Reserve Requirements by Loan Type, then read Verifying Funds to Close: The Underwriter's Asset Check before you submit a purchase file.

  1. Gift Funds for Mortgage: Letters and Paper Trail

    How gift funds for a mortgage are documented: the gift letter, donor bank statements, the transfer record and which loans allow a full gift.

    Published October 16, 2026gift fundsgift letterdown payment

  2. Proceeds From Sale of Home for Down Payment

    How lenders document proceeds from the sale of a home for a down payment: the settlement statement, bridge timing and the deposit trail.

    Published September 19, 2026home salesettlement statementbridge loans

  3. Proof of Funds Letter: What Sellers and Lenders Accept

    What a proof of funds letter must show, how it differs from bank statements, who can issue it and when cash buyers need one for an offer.

    Published September 15, 2026proof of fundscash buyersoffers

  4. Verifying Funds to Close: The Underwriter's Asset Check

    How lenders go about verifying funds to close: adding up eligible accounts, subtracting the deposit and fees and documenting every source.

    Published August 18, 2026funds to closeasset verificationclosing costs

  5. Borrowed Funds for Down Payment: Secured vs Unsecured

    When borrowed funds for a down payment are allowed: 401k loans, HELOCs and secured loans, how each adds to DTI and which unsecured loans are banned.

    Published July 16, 2026borrowed fundssecured loansdebt to income

  6. Verification of Assets for Mortgage: Electronic Reports

    How verification of assets for a mortgage works with electronic asset reports, what they replace, what borrowers consent to and when statements return.

    Published July 13, 2026asset verificationelectronic reportsdesktop underwriter

  7. Liquid Assets for Mortgage: What Counts and Haircuts

    Which liquid assets for a mortgage count toward reserves and closing, the haircuts on retirement and stock accounts and what lenders exclude.

    Published July 1, 2026liquid assetsreserveshaircuts

  8. Seasoned Funds for Mortgage: The 60 Day Rule

    What seasoned funds for a mortgage are, why lenders want 60 days of history, and how to handle money that arrived inside the seasoning window.

    Published February 19, 2026seasoningfunds to closeasset verification

  9. Selling Assets for Down Payment: Cars, Gear and More

    How to document selling assets for a down payment: bill of sale, value proof, the deposit on bank statements and timing the sale before closing.

    Published February 15, 2026asset salesdown paymentbill of sale

  10. Trust Assets for Mortgage Reserves and Closing

    When trust assets for a mortgage count toward reserves or closing, the trustee letter and trust documents lenders ask for and access limits.

    Published December 6, 2025trustsreservestrustee letter

  11. Brokerage Statements for Mortgage Assets and Reserves

    How lenders read brokerage statements for a mortgage: which holdings count, the haircut on stocks, vested balances and liquidating for closing.

    Published October 5, 2025brokerage accountsreservesliquidation

  12. New Bank Account Before Mortgage: Seasoning Problems

    Why a new bank account before a mortgage raises questions, how to show where the opening funds came from and when to wait before applying.

    Published August 11, 2025new accountsseasoningsourcing

  13. Proof of Liquidity for Business Loan Guarantors

    What proof of liquidity a business loan requires from owners and guarantors, how lenders verify it in statements and the liquidity covenants after.

    Published June 19, 2025guarantorsliquiditybusiness lending

  14. Asset Depletion Loan: Qualifying on Savings

    How an asset depletion loan turns savings and investments into qualifying income, which accounts count, the divisor lenders use and who it suits.

    Published June 2, 2025asset depletionqualifying incomeretirement accounts

  15. Reserves for Multiple Financed Properties Explained

    How lenders calculate reserves for multiple financed properties, the percentage of unpaid balances rule and which assets satisfy the extra reserve.

    Published May 15, 2025reservesinvestment propertyfinanced properties

  16. Business Funds for Down Payment: The Cash Flow Test

    When business funds for a down payment are allowed, the cash flow analysis lenders run to protect the business and the CPA or owner letter needed.

    Published May 2, 2025business assetsself-employedcash flow analysis

  17. Mortgage Reserve Requirements by Loan Type

    Mortgage reserve requirements by loan type: months of PITI, which accounts count as reserves and how bank statements prove the balance is there.

    Published April 8, 2025reservesPITIAasset verification

  18. Cash on Hand for Down Payment: Why Lenders Refuse It

    Why cash on hand for a down payment is rarely accepted, the few programs that allow it and how to deposit and season cash so it can be used.

    Published March 31, 2025cash on handdown paymentseasoning

  19. Crypto for Down Payment: Selling and Sourcing It

    How to use crypto for a down payment: selling to cash, exchange statements, wallet ownership proof and the seasoning lenders want before closing.

    Published February 23, 2025cryptodown paymentsourcing funds

  20. RSU for Down Payment: Vested Shares and Sale Proceeds

    How to use RSU shares for a down payment: vested versus unvested units, the sale and tax withholding, and how lenders source the proceeds.

    Published February 17, 2025rsuequity compensationdown payment

  21. 401k Withdrawal for Down Payment: Documenting It

    How lenders document a 401k withdrawal for a down payment: the distribution statement, taxes and penalties withheld and the deposit trail to closing.

    Published January 21, 2025401kretirement fundsdown payment

  22. Earnest Money Verification: Proving the Deposit Cleared

    How earnest money verification works: the canceled check or wire, the bank statement showing it cleared and sourcing the funds before the deposit.

    Published November 21, 2024earnest moneydeposit sourcingpurchase files