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davesgjr

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Home loan bank transfers statement request
My wife and I are working with our lender's loan processor to prepare our file for underwriting (USDA home loan). The processor requested an account statement showing a transfer to her checking account in the amount of $478.00.

The transfer was from my wife's father who is disabled and unable to live on his own without assistance. He's lived with us for the past two years and struggles to navigate the internet to pay bills. For his convenience he transfers a portion of his social security into my wife's account so she can manage paying his bills as well as cover food, rent, medical needs, etc.

We have concerns about this appearing as a source of income or as a gift when it is actually neither. The money is still my father-in-laws, he simply transfers it to my wife for the sake of her managing his finances. This amount averages around $450/month.

Is there a way we can explain or present this situation to the loan processor that will satisfy any concerns the underwriter may have? Are there any other complications that may arise from this arrangement? This is our first time buying a home and are worried this may have hurt our chances.

Thank you

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Top Contributor
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Why would they be asking for a bank statement to show this transfer? Do they not go off of your income? Unless they are questioning this amount, I would not bring all this up as it will probably only cause problems, adding confusion to a mix usually is not wise, there would not be any benefit of doing this. However, since they are requesting a bank statement, I could guess that you already told them that this was income. I suppose technically you could say that it is rent that your father in law pays your wife, or money that he pays her for caregiving and that should be just fine. What is done with this money is nobody's business.

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