Down payments and bank statements

[Benjamin Dutil]

Hi everyone. I have a question regarding down payment percentage and bank statement requirements. Initially I had a private lender who was going to give me 100% of financing for a purchase. Unfortunately he has said he cannot cover the entire purchase but still wants to give me some of the money. I would like to use his $ for the down payment and finance the rest with a conventional mortgage. Question: if I put 20% down how far back would the mortgage lender require for bank statements? Would the mortgage lender question the large deposit in my account? Thank you. 

[Caleb Heimsoth]

The answer to both of these questions is likely yes and yes.

I could be wrong but I think this is borderline mortgage fraud. For a conventional lender you’re not allowed to borrow the Down payment.

If you have a large deposit and you can’t explain it then they’ll likely disallow it as useable towards closing.

Typically they go back 2 months for bank statements but this can vary and I’ve had them go back an entire year before too